The Annual Register 1914 / A Review of Public Events at Home and Abroad for the Year 1914

by Anonymous

FOREIGN AND COLONIAL HISTORY.

CHAPTER I.
FRANCE AND ITALY.

I. FRANCE.

Gambetta was fond of expounding to his friends a theory which about the year 1875 appeared sufficiently paradoxical—viz. that of all the European nations, France was the one readiest to submit to discipline and authority. He used to add, however, that she would only do so on one condition—that the leader should inspire confidence among his following. This assertion was definitively and emphatically verified in France in 1914, not only from the military point of view, but from the political.

In the political life of the nation a persistent tendency, remarked in former volumes of this work, was noticeable both before and after the general election towards the organisation of parties in a definite framework and with specific aims. At the beginning of August the war instantly suspended everything not in perfect harmony with what was termed "the sacred union of all Frenchmen in the face of the enemy." The same ardour that had been displayed by all the citizens for the success of their respective sentiments and interests in the sphere of politics was directed to the performance of their duties as patriots. The state of siege, the censorship, and the military dictatorship, were accepted by the whole people without resistance.

At the opening of the year the Republicans of the Left, who did not accept the decisions of the Radical-Socialist Congress of Pau (A.R., 1913, p. 291), succeeded in establishing that Federation of the Left of which the formation had been announced after the advent of the Doumergue-Caillaux Ministry. M. Barthou, M. Briand, and M. Millerand were its principal leaders in the Chamber, M. Ribot and M. Jean Dupuy in the Senate. The most compact group, which formed as it were the centre of gravity in the new association, was the Democratic Alliance, led, for several years past, by M. Carnot, brother of the former President of the Republic. Its framework was sound; it remained to be seen whether it could raise a sufficiently solid body of adherents and candidates to deprive the Radical-Socialists of their majority. Just as the session began, M. Briand was elected President of the Federation. The election of the officers of the Chamber was awaited with some curiosity as to whether the Radical-Socialist party would claim the Presidency for one of its own members. But it did not do so. M. Paul Deschanel was elected unopposed, receiving 379 votes. For the Vice-Presidencies, M. Étienne, a former War Minister, and a member of the Democratic Left, and M. Dron, a Radical representative of the Department of the Nord, were the only members chosen at the first ballot. At the second the Abbé Lemire was returned, the majority desiring to afford him satisfaction for his persecution by the Clericals of his Department and the Bishop of Lille on the ground of his Republicanism. Finally M. Augagneur, a Republican Socialist, was elected, by a narrow majority, on the third ballot. Thus, in the secret voting, the Radical-Socialists were beaten (Jan. 13). In the Senate, the struggle was much less acute. M. Antonin Dubost was re-elected unopposed to the Presidency, and the posts of Vice-President, Secretaries, and Questors, were apportioned according to the traditions of courtesy customary in that Assembly.

The work of the Legislature was begun by the inconvenient method of breaking up the debates and alternating portions of them, on subjects of the most divergent natures, in the programme of the Chamber. The Bill providing for the defence of the secular character of the schools and the method of securing attendance was, however, passed, after the rejection of the amendments supported by the deputies of the Right; but one of its essential points, the transfer of the appointment of teachers from the Prefect to the school authorities, was separated and postponed to a future period. Another Bill, equally important for the future of the nation, that for the limitation of the number of public-houses, was repeatedly revised and mutilated; and the Friday lists of interpellations were overloaded, and the militant spirit of M. Jaurès aroused, by the ever-recurring topic of the Ouenza mines. The Senate had before it two great questions: the income-tax, and electoral reform. The ideas dominant at the Luxemburg were in explicit contradiction with the decisions taken at the Palais-Bourbon. The discussion of the income-tax ranged over a remarkably wide field. The majority of the members agreed in regretting that, at the very moment when the Government was urging the Upper House to begin discussing the question of an income-tax, it had laid before the Chamber a proposal for a levy on capital, the provisions of which must modify the measure which that House had already passed. This was playing into the hands of the opponents of the reform.

As regarded the Electoral Reform Bill, the antagonism between the two Houses was equally acute. The Senate Committee rejected the Government measure by a large majority, and the pending general election seemed likely to be still conducted under the system which so many competent observers had condemned, without, however, agreeing on a substitute. In view of this eventuality the parties were already defining their attitudes. At the end of January the Socialists met in Congress at Amiens. They declared themselves against the revival of the former Combist bloc (A.R., 1902, p. 264; 1904, p. 253) and decided that the Unified Socialists should put forward candidates in every constituency, in order to ascertain the numbers of their adherents. The programme to be laid before the electors was to contain in any case three essential articles: (1) "opposition to militarist and capitalist imperialism," i.e. immediate repeal of the law enacting three years' military service; (2) a Franco-German understanding; (3) the maintenance of the secular character of the schools. Should a second ballot be necessary, the Executive Committee of the party left the Departmental Federations to decide whether agreements should be entered into with the middle-class Republican parties, but these latter must be required to adopt the three obligatory articles stated above. The Committees of the Right, on their part, proposed to organise, under the name of a national inquiry, what really amounted to a plébiscite on the method of election to the Chamber. M. B. Pugliesi-Conti invited that House to do this (Jan. 30); M. Jaurès caused general surprise by supporting him. The motion was opposed by the Prime Minister and by M. Briand, and rejected by 389 to 164.

An incidental feature of the debates in this first period was the prominence of military and colonial questions. Thus on January 28 the Chamber had unanimously voted the loan of 230,000,000 francs for the Morocco Protectorate. Public opinion, again, was so strongly manifested against the intention ascribed to the Russian Putiloff Company of placing itself under the control of Krupps in order to increase its capital, that the French Government intervened to prevent the German firm from becoming concerned in the manufacture of artillery for Russia. Finally, throughout France the keenest attention was directed to the discussion in the Senate on the interpellation on military aeronautics supported by the Senator representing the Department of the Loire, Dr. Emile Reymond, an eminent surgeon and a noted airman (Jan. 23, 27, 30). The serious defects indicated by the various speakers were admitted by the War Minister, M. Noulens, who formally promised to remedy them. As a security that this should be done, the Senate passed a resolution regretting the faults of organisation existing in this service, and expressing confidence that the War Minister would effect the necessary reforms by giving it autonomy.

It was only on February 9 that the Chamber reached the discussion of the Budget of 1914. By 440 votes to 67 the general debate was omitted in the hope of gaining time. The Departmental Estimates and the Reports of the Committees upon them were successively brought before the House with unusual speed. But this commendable zeal did not last. On February 13, M. Lachaud addressed an interpellation to the Government on the sanitary condition of the Army, and adduced information on the housing of the troops, particularly in the Eastern departments, and on its consequences, of so grave a character that the Prime Minister was obliged to intervene in the debate. He asked the Chamber to suspend the discussion, and to vote the sums necessary to improve the clothing of the troops and their barracks. But all he could obtain was a postponement for eight days, during which most of the Votes were hastily passed. The revelations made when the debate was resumed (February 20-23) were so serious that the Government did not venture to ask for a vote of confidence. M. Augagneur then moved the appointment of a Commission of Inquiry. M. Abel Ferry proposed that this Commission should merely inquire what improvements could be effected while the Government should take measures against the persons responsible for the state of things revealed. The Chamber agreed to this solution by 389 to 29. The Government had evaded the conflict. It did not venture further to risk its fortunes in the Senate on the income-tax question. The general debate on this had taken up almost all of the Friday sittings from January 20 to February 25. All the party leaders successively had spoken: M. Caillaux and M. Ribot had faced one another in a striking passage of arms: and the competence and talent of the Upper House had been proved once more. The general debate over, the Senate decided by show of hands to pass to the examination of the clauses of the Bill. M. Perchot, one of the Radical leaders, put forward an amendment establishing impersonal taxes (impôts réels) on incomes of every class and a complementary tax on the aggregate income of every head of a household. It was opposed by M. Aimond, Senator for the Seine-et-Oise, and Reporter-General of the Finance Commission, and by M. Ribot, and supported by the Ministry. The Prime Minister, M. Doumergue, read a declaration asking the Senate to pass it, inasmuch as it corresponded to the wishes repeatedly expressed by the other House, and urging them, besides, to pass the pending fiscal reforms before the general election. He studiously avoided raising the question of confidence, and the amendment was rejected by 140 to 134. Next day, February 26, the Senate, to prove that it was not opposed to all reform, whether just or otherwise, adopted the first and second articles of the Budget; the land tax was profoundly modified in a manner favourable to small proprietors; it had been assessed by the Departmental and local authorities so as to produce a total amount fixed by the Legislature: it was now imposed at a uniform rate throughout France. A reduction of one-ninth was accorded to all income from agriculture.

The same evening, in a banquet organised by the Democratic Republican party, M. Barthou set forth the electoral programme of the Federation of the Left—maintenance intact of the law reimposing three years' service in the Army; defence of the secular character of the schools, but without making education a State monopoly; representation of minorities. The Ministry in its turn scored a success in the Chamber (Feb. 27). M. Caillaux, replying to an interpellation on his financial policy, vindicated himself in one of his best speeches. He made a brilliant defence of his administration, boasted that he had restored order and abolished confusion in the revenue, and successfully met the attacks of M. Briand and M. Millerand; he was sustained by a majority of 329 to 214. Clearly the Radical-Socialist party and its Socialist allies were determined to maintain at all costs the Doumergue Ministry to conduct the elections; but it was equally clear that the real leader of the Ministry and its party was M. Caillaux, and it was against him that the Opposition concentrated their efforts, in the conviction that his overthrow would deprive the Government of its head. Full of confidence in his own talents and in his star, the Finance Minister exhibited a marvellous boldness in his manœuvres; thus, on March 4, when invited by the Senate Committee on the Income-Tax Bill to appear before it, he declared that he agreed with it in favouring the exemption of French Rente from taxation; the 3 per cent. Rente immediately went up. But next day in the Chamber, replying to an interpellation by M. Jaurès, M. Caillaux declared that he had merely reserved this question, and that he was firmly resolved to put a tax on Rente, as on every other kind of income.[5] A fall in Rente followed, and rumours of a most unfavourable character were circulated, though it was impossible to prove that the successive interpellations on the financial policy of M. Caillaux had facilitated speculative manœuvring on the Bourse. In any case it was regrettable that these charges had some verisimilitude, and the result was a marked revival of the Press campaign carried on for some months previously against him. The Figaro directed the attack; almost every day its political director, M. Gaston Calmette, produced documentary evidence of various alleged malpractices which M. Caillaux declared was not authentic, but it related to so many charges and was so precise that it greatly influenced public opinion, and weakened M. Caillaux's position. Finally, the conflict was concentrated on the part played by M. Caillaux in the Rochette case of 1911. It was whispered in well-informed circles that the Public Prosecutor in the Paris Court of Appeal had been requested by M. Monis, then Prime Minister, to grant M. Rochette, a company promoter, a delay in the prosecution for fraud instituted against him, and that, thanks to this, M. Rochette had been able to start various fresh enterprises which had brought disaster on small investors. In the sitting of March 13, M. Delahaye, a member of the Right, introduced a motion inviting M. Caillaux, whose intervention had determined M. Monis to take the step referred to, to take legal proceedings against his accuser. The motion was opposed by MM. Doumergue and Jaurès, who alleged that it was merely a political manœuvre, and the Order of the Day, pure and simple, was voted by 360 to 135. But some days later (March 16) Madame Caillaux called at the office of the Figaro and shot M. Gaston Calmette dead with a revolver. This mad act necessarily entailed grave consequences. That evening M. Caillaux tendered his resignation, and M. Doumergue, after a hesitating resistance, was constrained to accept it. The Rochette affair was taken up again. In the Chamber, M. Delahaye formally demanded that the Government should either dismiss the Public Prosecutor, M. Fabre, or should compel him to take proceedings against the papers which accused him of showing undue favour to the accused. Seldom had sitting been more tumultuous or more passionate. M. Monis was questioned as to his attitude, and formally denied that he had intervened in the matter. Thereupon M. Barthou drew from his portfolio the letter drawn up by M. Fabre relating to the step in question and subsequently sent by him to the Minister of Justice. The Chamber then unanimously passed a motion reviving the powers of the Committee of Inquiry, but investing this body with judicial power, i.e., the right of administering an oath to the witnesses summoned before it, and, if necessary, of proceeding against them for giving false testimony. Naturally M. Monis was obliged to resign, and the Ministry was reconstructed. M. Renoult passed from the Department of the Interior to that of Finance, M. Malvy from that of Commerce to that of the Interior, M. Raoul Peret, Under-Secretary of State at the Ministry of the Interior, became Minister of Commerce, and M. Gauthier, a Senator, succeeded M. Monis as Minister of Marine. Amid this whirlwind the work of the Legislature had not been suspended, and the Chamber had accomplished, after a fashion, the discussion of the Estimates of expenditure and had passed various social measures—a Bill organising a system of loans to small traders and manufacturers, the extension to women not paid by salary of the law providing a period of rest for women after their confinement, and the continuance to widows of the old-age pensions which had been allotted to their husbands. The Senate firmly maintained the positions it had taken up. On March 10 it voted the scheme of electoral reform elaborated by the Commission, which established scrutin de liste pure and simple; and on the 13th it rejected the tax on Rente by 146 to 126. Some days later it decided that the new tax on personal property, with the exception of Rente, should come into force on and after July 1, and that the reduction of taxation on properties not built upon, agreed on by the two Houses, should take effect from January 1, 1916. Similarly two reforms were at last disposed of which had been for years shuttlecocked to and fro between the Chamber and the Senate. One concerned the measures to be taken to secure the secrecy of the ballot; the other restrained the abuses of bill-posting in the elections. The rest of the debates in the Chamber were less interesting; members showed that they were preoccupied with the elections. Thus, in passing the Finance Bill the system of licences to publicans was abolished, increases in salary were accorded to teachers, and allowances to postal servants, in spite of the factious attitude adopted by the associations and unions of these servants of the State. Finally the income-tax, which the Senate had not finally voted, was incorporated in the Bill. As it was evident that the Senate would not even begin considering the Budget of 1914 till after the general election, it seemed good policy—as is usual at the expiry of a legislature—to give pledges of liberality on the part of the Chamber to the most influential elements in the electorate. While this periodical comedy was played in the Legislative Chamber, a drama of greater poignancy was bringing into conflict the most conspicuous personages in the political and judicial world. M. Jaurès presided over the Commission; before it there testified successively, and were confronted with one another, three former Prime Ministers, the Procureur-General of the Court of Appeal, the directors-in-chief of leading Paris papers; and the result of the proceedings was a general conviction that in March, 1911, the Monis Ministry really had intervened to save a company promoter of questionable character from prosecution. The scandal caused was immense. In its sitting of April 3, the Chamber, after a short discussion, passed the following Order of the Day: "The Chamber, taking note of the conclusions of the Commission of Inquiry, condemns improper financial interference in politics and political interference in the administration of justice, affirms the necessity of a law making membership of the Legislature incompatible with other employments, and is resolutely determined to secure more efficaciously the separation of the powers of the State." The unanimity with which this formula was accepted deceived no one, for it was the Chamber that was responsible in the main for the encroachments of the legislative power on that of the Executive and the Judiciary, and it was known beforehand that no effective check could be applied.

The Legislature separated on the same day, after having voted supplies on account for May and June. To all the scandals of the session it added another by terminating its existence without having performed the elementary duty of passing the Budget for the current year. That circumstance alone was sufficient to deprive its censures of all authority.

The electoral period began, in accordance with the law, on Sunday, April 5. The outward aspect of the conflict was not without interest, though less picturesque than the Italian elections of the year before (A.R., 1913, p. 305). In the first place the law regulating bill-posting effected a real revolution in the mural propaganda. No longer did posters of many hues adorn the public monuments, the pedestals of statues, and sometimes the statues themselves: no longer did bills settle in the night like butterflies on houses up to their very tops, or fasten on the trees on the boulevards, one overlying another; there were no more battles between bill-posters; the municipal authorities allotted to each candidate an equal surface, measured out very sparingly, according to the number of the population. It was an egalitarian revolution in political manners, assuring that the poorer candidates and organisations should no longer have their views smothered. On the other hand, the campaign was much more severe than at the previous election both for the candidates and for their organised supporters. The political meetings at which speeches from opponents were invited were at least three times as numerous. The Unified Socialist party exhibited an activity which the other parties were forced to imitate. Three questions were prominent: the law re-establishing three years' military service, the income-tax with the declaration of the payer subject to official revision, and proportional representation. The result was that candidates' professions of faith did not generally possess the encyclopædic character or reach the extravagant dimensions exhibited in former contests—a proof that political education had progressed far enough to compel candidates to abstain from promises covering the possible, the impossible, and the purely Utopian.

The Ministerial programme was awaited with much curiosity. M. Doumergue was called upon by M. Millerand to declare definitely for or against the three years' service law and proportional representation. At first he observed a prudent silence, being, as a Senator, exempt from submission to the popular verdict at the polls. He declared that the Government ought to observe the neutrality which he had recommended to the prefects, but which they carried into practice hardly at all. M. Clemenceau, rather maliciously, added his entreaties to those with which the Prime Minister was persecuted, and on April 29, at a banquet at Souillac, M. Doumergue spoke for the benefit of the electorate. As every one expected, he attacked the Barthou Ministry, charging it with having obtained support among the enemies of the Republic: he boasted that he had himself secured the passing of a reduction of taxation on property not built on; he praised the fiscal reform effected, was very vague on the subject of the three years' service law, and declared himself distinctly adverse to electoral reform by proportional representation, even going so far as to eulogise the system of single-member districts which had been so universally attacked. This speech added nothing to the prestige of the Government, and contributed but slightly to the guidance of its supporters in the pending conflict. At the beginning of the electoral period the Radical-Socialists seemed in an awkward position; attacked mercilessly by the Socialists and the Conservatives, they were in danger of losing a portion of their habitual allies, i.e. the Republicans of the Left, through the coalition formed under the auspices of the triumvirate consisting of M. Briand, M. Barthou, and M. Millerand. But an evolution took place of which the effects were destined to make themselves felt more especially at the second ballot. Brilliant in oratory, active at the very first, possessing abundant resources generously supplied by the members of the new Republican aristocracy, controlling almost all the leading Parisian and provincial papers, the Federation of the Left rallied to its support very many discontented and restless middle-class voters. But dissensions arose between its leaders; M. Briand and M. Barthou did not entirely agree. The latter endorsed candidates whose past career did not entitle them to term themselves Republicans of the Left, and who were also patronised by allies of very questionable political hue. The instance which excited most comment was that of M. Jean Richepin, who carried on a campaign of a most romantic character against M. Caillaux's friend, M. Ceccaldi, in the Aisne. Moreover, on the first ballots only 349 members were elected out of 602. Every party hastened to claim a victory, for the most conspicuous of the outgoing deputies had been re-elected almost everywhere. All the members of the Cabinet had been successful. M. Caillaux, who at the outset had withdrawn from the contest, had altered his decision and, after a hard struggle, had beaten his adversary.

After this there was the question of the second ballots. The Radical Socialists offered the Executive Committee of the Unified Socialist party to support its candidates in all constituencies in which they had even a single vote more than those of the party whose headquarters were in the Rue de Valois, and M. Ferdinand Buisson, one of the most respected of the Radical leaders, set the example by issuing a notice, the very day after the first ballots, inviting all his supporters to concentrate their votes on M. Navarre, whose defeat on the second ballot would otherwise have been certain. The Socialists refused to go back on the decisions taken at the Amiens Congress; the departmental federations retained full power to determine their own attitudes, a position which gave full play to personal enmities, and in many constituencies favoured bargains of the strangest kind between Socialists and reactionaries. The number of Revolutionary Socialists who owed their success to these combinations was estimated at at least one-third of the whole (May 10). Whether "improperly elected," as those were termed in the language of the Chamber who owed their success to these dealings, or loyal representatives of sincere convictions, the Unified Socialists had none the less achieved a great success. They numbered 102 in the new Chamber; the Unified Radicals were 136; the Independent Radicals 102; the Democratic Alliance 100. The members of the various groups of the Right amounted altogether to no more than 132.

A Ministerial majority might, therefore, have been formed by combining all those deputies whose programme might be summed up in the formula, "Neither revolution nor reaction." The President of the Republic found himself faced by this problem when the summer session of the new Chamber opened. During the electoral contest M. Poincaré's authority had lost nothing. He had scrupulously kept to the part assigned him by the Constitution above party conflict. While it went on he had, as usual, proved on occasion a brilliant representative of the nation. At the end of April he had received the King and Queen of Great Britain, at the end of May the King and Queen of Denmark. The people of Paris had welcomed the British Sovereigns with enthusiasm, the Danish Sovereigns with cordiality. On May 24 the President had personally inaugurated the admirable Civic Exhibition of Lyons, and had delivered an impressive speech on the attributes and function of the head of the French Republic.

The correctness of his attitude had, moreover, found its reward in the fact that the question of the abolition of the Presidency of the Republic, which had formerly been prominent in the Radical and Socialist programmes, had now almost entirely disappeared. How, in the face of the new Legislature, would the essential prerogative of the Head of the State be exercised—the designation of the Prime Minister? In the first place, what would be the attitude of the Chamber? and what indication would it afford by the choice of its officers? While M. Poincaré went to Rennes to the meeting of the Federations of Gymnastic Societies, and defended the law reviving the three years' term of service, the Chamber began its session on Whit Monday (June 1) and, after an address from its oldest member, the Baron Mackau, it elected M. Deschanel, by 401 votes, Provisional President, and then proceeded hastily to the work of verifying the elections of its members. In two sittings, the Committees had examined a number of elections, and declared more than half its members to be duly elected. The regular officers of the Assembly were elected on June 4. The groups had agreed on the division of the appointments; the Right and the Extreme Left, i.e. the Unified Socialists, had no share in them. The strictest discipline was observed, and in a few hours the work was completed. M. Paul Deschanel was elected President by 411 votes, the largest number ever given for a President of the Chamber since the establishment of the Constitution.

The Ministry had already retired. Scarcely, indeed, had M. Poincaré returned from Brittany when M. Doumergue tendered its resignation, rather against his colleagues' will. After some hours of consultation with personages representative of public opinion, M. Poincaré entrusted the formation of a Cabinet in the first instance to M. Viviani; but the latter failed owing to a persistent refusal to co-operate on the part of two young Unified Radical deputies, M. Ponsot and M. Justin Godart, who demanded a promise that the two years' term of military service should be restored after certain measures for giving military training to the youth of the nation should have taken effect; and they refused to accept M. Viviani's reservation, "should the condition of foreign relations permit." M. Deschanel, M. Delcassé, and M. Jean Dupuy successively declined the task; ultimately M. Ribot agreed to attempt it, and on June 9 the Cabinet was formed. It contained no Radical-Socialist, the group having definitely refused to co-operate. M. Ribot took the Presidency and the Ministry of Justice; M. Leon Bourgeois had accepted the post of Foreign Minister, M. Jean Dupuy Public Works, M. Peytral the Interior, M. Delcassé War, M. Chautemps Marine, M. Clementel Finance. The other posts were assigned to deputies who had never previously held office. The new Cabinet was immediately repudiated by the Radical-Socialist group, which determined to address an interpellation to it at once, and gave all its own members imperative instructions to vote against the Ministry. M. Dalimier was charged with the task of setting forth the reasons for this opposition. On Friday, June 12, the Premier read the Ministerial declaration in the Chamber, while M. Peytral communicated it to the Senate, which received it with courtesy. Far different was its reception in the Chamber, and the sitting that day, at which the German and Italian ambassadors, M. von Schoen and Signor Tittoni, were present in the seats reserved for representatives of foreign States—a circumstance which attracted much attention—was among the most astonishing in Parliamentary history. The venerable M. Ribot, whose physical strength was not equal to his courage, and the senior member of the Radical party, M. Leon Bourgeois, were insulted, scoffed at, interrupted at every sentence. To secure a hearing amid this organised tumult would have required the powers of an O'Connoll, or at least of a Gambetta. The "grand old men" who had accepted the task of governing were physically incapable of compelling the assembly to hear them. However, though individual extravagances found full expression, when the vote came to be taken party discipline made itself felt. Two Orders of the Day were proposed; one, purely political, by M. Dalimier and M. Puech, declaring the Chamber resolved to give its confidence only to a Cabinet capable of uniting the forces of the Left; the other by M. Combrouze and M. Pierre Berger, affirming the necessity of maintaining the three years' service law and pursuing a policy of fiscal and social justice and of defence of the secular character of the schools. M. Ribot demanded priority for the second; the Radicals claimed it for their own resolution, and it was on this question of procedure that the conflict took place. By 306 to 262 the Cabinet was defeated. Amid indescribable disorder the Ministers left their seats. In other days, as an example of the instability of Ministries under Louis Philippe, it had been usual to cite the Duke de Bassano's Cabinet (Nov., 1834) which had lasted three days. M. Ribot's Cabinet, in spite of the talent of its Premier and his chief colleagues, had not endured even as long as that.

Its place was soon filled. The day following, M. Poincaré summoned M. Viviani, who at once accepted the task. His first step was one of pure courtesy; he offered a place to M. Combes, who refused, stating that he remained absolutely opposed to the three years' service law. The other political personages applied to by M. Viviani were less uncompromising. M. Messimy and M. Augagneur, who had taken a leading place among the opponents of the law in 1913, now agreed to carry it out loyally. On June 14 the Journal Officiel published the names of the new Cabinet. M. Viviani took the Presidency and the Ministry of Foreign Affairs; M. Bienvenu-Martin, Justice; M. Malvy, Interior; M. Noulens, Finance; M. Augagneur, Public Instruction; M. Renoult, Public Works; M. Thomson, Commerce; M. Fernand David, Agriculture; M. Couyba, Labour; the three departments of national defence were entrusted respectively, War to M. Messimy, Marine to M. Gauthier, the Colonies to M. Raynaud. There were five Under-Secretaries of State—M. Abel Ferry, Foreign Affairs; M. Jacquier, Interior; M. Lauraine, War; M. Ajam, Mercantile Marine; M. Dalimier, Fine Arts. Two days later (June 16) the Ministry presented itself in the Chamber with a declaration on the military law which left no room for uncertainty; it also affirmed the necessity of an immediate loan, and announced its intention of pursuing the policy of social and political reforms which had been victorious at the polls. An interpellation was at once addressed to the Prime Minister; in replying, M. Viviani, who manifestly had the wind in his favour, took the offensive, and declared emphatically that, if he should be still in office in October, 1915, he would not release the class which would then be completing its second year of military service. Heckled by M. Jaurès and M. Vaillant, both Socialists, and by M. Franklin Bouillon (Left) and M. Paul Beauregard (Right), he in no way modified his attitude. An Order of the Day presented by M. J. L. Breton, Socialist Republican, was accorded priority by 362 to 139. At the end of the sitting, M. Noulens introduced a Bill sanctioning a 3½ per cent. terminable loan of 800,000,000 francs. The Ministry was successful; the Socialists then proceeded to obstruct. At the sitting of June 18, during the discussion on the date of an interpellation dealing with the sinking of the soil in several quarters in Paris owing to the work on the Metropolitan Railway, the disorder and noise were so great that M. Deschanel was obliged to suspend the sitting. Some days later a modification was adopted in the rules of the Chamber which gave ocular demonstration of the tendency of parties to impose a stricter discipline on their members. The Journal Officiel, by an innovation which attracted some notice, had given the list of the eleven groups composing the Chamber. It was decided that, instead of members seating themselves wherever they individually pleased, they must sit in the sections assigned to their respective groups. This was a return to the old tradition of the Revolution, which had given the terms Right, Left, and Centre their current political significance. It might be hoped that the change would facilitate the work of the President of the Chamber.

Meanwhile the Senate had worked hard at the Budget, which had been so unfortunately delayed; and the Government speedily obtained the vote of the loan of 805,000,000 francs (including expenses of issue) designed to enable it to pay off the Treasury Bonds. The various sections of the Estimates of Expenditure were adopted almost without alteration. On the subject of the Estimates of Revenue the discussion was more active. The Finance Committee, supported on this occasion by M. Ribot, asked the Senate to follow the Chamber in including in the Budget a clause involving the application of the income-tax (Art. 7-27), the declaration made by the taxpayer to be subject to official revision. In spite of the opposition of M. Touron, M. Lhopiteau, and M. de Selves, the Senate passed this important innovation, though without fully accepting the text bequeathed to it by the defunct Chamber. On July 8 it finished the discussion of the Budget; and for a whole week the two Reporters-General of the Budget Commissions, M. Clementel in the Chamber and M. Aimond in the Senate, had to use all their diplomacy to induce the two Houses to agree. In these laborious sittings M. Noulens, who was making his first appearances as Finance Minister, strove to obtain concessions from all quarters and to discredit the unfavourable forecasts of the Opposition. He confidently affirmed that the deficit of 1914 would not exceed 207,000,000 francs, which would be covered by short-term obligations; that the reception of the loan had been wonderful, and that it had been subscribed forty times over. The credit of the French State had thus shown no decline.

While the Chamber was revising the Finance Bill, the Senate had to deal with a question of no less importance. M. Charles Humbert, a Senator from Lorraine, addressed an interpellation to the War Minister dealing with the bad state of the matériel of the artillery, and the grave revelations he made caused M. Clemenceau to sum up the impression made on his mind in the severe comment, "We are neither defended nor governed." M. Messimy, the War Minister, and after him the Premier, vainly attempted to modify the impression produced by the debates on this subject, and found themselves obliged to agree to an inquiry by the Senate Commission on the Army, which was requested to report when the Chambers reassembled in October. The impression made by these debates was considerable, both in France and abroad. Finally, on July 15, after a few meagre concessions accorded by the Chamber, and a much greater number extorted through the weariness of the Senate—notably in regard to increased salaries and allowances for teachers and postal employees—the Budget of 1914 was passed. It reached the formidable amount of 5,191,861,991 francs (about 207,674,479l.). But it is useless to give details of it, for it had almost at once to be completely set aside in consequence of the war. Its great innovation, the first application of the tax on income from movable property (valeurs mobilières), was also destined to be shelved, for the financial Administration eventually found itself unable to set up the system of assessing the new tax in time.

The Chambers broke up on July 15. Immediately President Poincaré, accompanied by M. Viviani, left on his important journey to Russia and the Scandinavian countries which had been postponed owing to the length of the Parliamentary Session, and which the force of circumstances was destined considerably to abridge. M. Bienvenu-Martin, who as Minister of Justice was Vice-President of the Cabinet, also took the Ministry of Foreign Affairs ad interim. It was a heavy task, complicated by serious incidents at home. The very day the battleship France arrived at Cronstadt (July 20) the jury of the Seine assembled to try Mme. Caillaux. During eight sittings, the dramatic and romantic circumstances of the affair, the revelations as to the political and private life of M. Caillaux himself, made by the testimony given and the documents read in court or passed round in the lobbies, made the Palais de Justice, at first at any rate, the centre of keen and impassioned attention. But all these scandals were pushed into a secondary place, and the acquittal of the accused woman aroused but few protests, in view of the anxiety caused by the enigmatic attitude of Germany in the Austro-Serbian dispute. On arriving in Sweden M. Poincaré was obliged to break off his intended journey to Norway and Denmark, and he reached France on July 29. His return was impatiently awaited; but unfortunately the evil was now past remedy. All the efforts of the French Government and its diplomatic representatives, in concert with the British and Russian Foreign Offices, failed to induce Austria-Hungary, in her demand for satisfaction for the murder of the Archduke Francis Ferdinand, to respect the sovereignty of Serbia, or to induce Germany to influence her ally towards peace. M. Dumaine, the French Ambassador at Vienna, had vainly called the attention of Baron Macchio, the Under-Secretary for Foreign Affairs at Vienna, to the anxieties aroused in Europe by the concentration of eight army corps along the Danube and Drina, and by the information circulated regarding the Note prepared by the Austro-Hungarian Chancellery. The answer given him was that the demands formulated, and their tone, would admit of the expectation of a pacific solution, and M. Jagow had told M. Jules Cambon, the French Ambassador at Berlin, that he did not know its wording. While the authorised representatives of the Triple Entente were concerting their measures, Austria-Hungary was acting; and on Thursday, July 23, it sent a Note to Belgrade, inviting the Serbian Government to agree to its demands within forty-eight hours. France made efforts to gain more time, but M. Jules Cambon informed the French Foreign Office that Germany was mobilising secretly, and M. Paléologue, the French Ambassador at St. Petersburg, gave his opinion that the only means of preventing the Germanic Powers from emphasising their provocative attitude lay in the demonstration of the solidity of the Triple Entente. In the result France associated herself fully and loyally with the efforts of Russia and Great Britain to avert the conflict and obtain an extension of the period accorded to Serbia for her reply, and also to persuade Germany to exercise a conciliatory influence at Vienna. All these overtures encountered manifest ill-will and the utmost coldness. The diplomatic breach between Austria-Hungary and Serbia took place on July 29 at the appointed hour; France at once gave her adherence to the steps suggested by Sir Edward Grey to prevent hostilities and to secure by the intervention at St. Petersburg and Vienna of the four disinterested Powers, that the Russian and Austrian Armies should not advance beyond their own respective frontiers. These efforts were paralysed by the hostility of Germany; Herr von Schoen, while declaring that his Government did not know the intentions of Austria-Hungary, gave it to be understood that Germany would not try to influence her ally. This attitude, and the information received from London, Berlin, and Rome, made France understand that the situation was hourly getting worse. Thus matters stood when M. Viviani resumed the direction of foreign affairs (July 30). While expressing the hope that peace might still be preserved, he declared clearly that, if Russia were attacked by Germany, France was resolved to fulfil all her obligations as Russia's ally. In response to the military measures taken in Germany, the Government hastened its preparations; but several days had been lost, and already the covering troops of the German Army were massed all along the frontier between Luxemburg and Alsace. To avoid any frontier incident, the French troops were ordered to leave a zone of ten kilometres between their outposts and the boundary line. But all the conciliatory proposals were rejected either at Vienna or at Berlin. Telegrams exchanged between the Tsar and the German Emperor merely convinced Russia that Germany had made her decision. On the morning of July 31, a general mobilisation was decreed at Vienna; for a few hours it was nevertheless hoped that Germany and Austria-Hungary would nevertheless draw back before the consequences of a declaration of war against Russia: Vienna hesitated, Berlin decided; and on Saturday, August 1, at the moment when Austria consented to enter into a discussion with the Powers regarding the basis of the ultimatum addressed to Serbia, Germany required Russia to countermand within twelve hours all the measures of mobilisation already taken. M. von Schoen invited France to state if she would support Russia.

Germany, which had already prepared for her general mobilisation by announcing the condition of "danger of war" (Kriegsgefahrzustand), decided on August 1 to proceed to this mobilisation, and at the same time her troops entered Luxemburg under the pretext of protecting its railways against occupation by French troops; and the German Ambassador at St. Petersburg delivered the declaration of war with Russia, thus rendering useless the negotiations between Vienna and the Powers of the Triple Entente. France then ordered a general mobilisation of her own forces, and applied to Great Britain, who undertook to protect the coasts of the Channel and the Atlantic against attack by the German Fleet (p. [171]), The day following, German troops entered the territory of Belfort, and Germany required the Belgian Government to declare, within seven hours, whether it was disposed to facilitate German military operations against France. Finally, on August 3, at 6 P.M., Herr von Schoen delivered a letter to M. Viviani, notifying him that a state of war existed between Germany and France. M. Cambon was then instructed by the French Government to demand his passports and leave Berlin. To the last, and even in the practical details relating to international courtesies, the methods of Germany and of France were conspicuously different; M. Schoen was taken to the frontier by a special train—of which the Germans kept possession for several weeks; M. Cambon was subjected to treatment unworthy of a country with knowledge of the practices customary between civilised States.

France was faced by the most formidable war in her history. She courageously prepared to carry it on. The Government summoned the Chambers for Tuesday, August 4. The sitting was destined to have a decisive influence on the whole subsequent course of events; it showed how profoundly the German aggression had altered the opinion of the whole of France. All the disquieting forecasts which seemed to be supported by the debates in the Chambers and the party conflicts were found to be wholly falsified. M. Raymond Poincaré, who some days earlier made a personal appeal to King George V. to use his great influence in favour of peace, the French Ministry now asked for the armed intervention of Great Britain in the interest of the future equilibrium of Europe. The German entry into Belgium compelled Great Britain to declare herself. The Triple Entente was transformed into an alliance, while the Triple Alliance broke up, inasmuch as Italy refused to be drawn into a war declared without consulting her. At this momentous juncture the attitude of France upset the calculations of her enemies. They had counted on two great causes of her inferiority, want of artillery and internal disturbance. As to the first, it was true that the German heavy artillery was greatly superior in the early days of the war, but, to compensate for this, the French troops, brought into the field a light artillery weapon, the 75-millimetres cannon, of which the manufacture had been hurried on in the utmost secrecy, thanks to an understanding between the Government and the Parliamentary Committees on the Army and the Budget, and of which the mobility, precision, and rapid fire contributed in no small degree to sustain the moral of the troops. Moreover, a vigorous impulse was given to the production of howitzers and long-range cannon which in a few months made up for the initial inferiority of France in these weapons. The dangers arising from internal disturbance and unrest were obviated very soon. The attitude of the trade unionists, and even of the Socialists, caused some anxiety to the Government. Towards the end of July the Executive Committee of the International had met at Brussels and had declared against the war. It had decided to hold a kind of congress at Paris on August 9; but the declaration of war caused this to be given up. An attempt at a trade-unionist demonstration in the streets of Paris had been forcibly suppressed by the police, with the entire approval of the public. Other attempts at disorder were made under the guise of patriotism, and a number of shops and stores were plundered; some arrests were made, and it was found that the nationality of some of the agitators was questionable. The murder of M. Jaurès by a wretched youth whose mental balance had been upset, had not the terrible consequences that there had been reason to apprehend. On the contrary, the horror manifested by the entire Press, the full justice done to the victim in impressive fashion by the Prime Minister, the loyal attitude taken up by the Socialist party, converted this great disaster into an opportunity for an imposing exhibition of the unity of the nation. But legislative sanction was required for the measures of public safety that the war compelled the Government to take. The Chambers met on August 4. On the previous day there had been some changes in the Ministry. M. Viviani, thinking—and quite rightly—that he would be fully occupied in the general superintendence of affairs, turned over the Foreign Ministry to M. Doumergue. M. Gauthier, for reasons of health, left the Ministry of Marine, which was taken by M. Augagneur. M. Sarraut, a deputy and Governor-General of Indo-China, became Minister of Public Instruction. This rearrangement was not altogether happy. It left the Cabinet distinctively Radical at a moment when it would have been desirable to summon the two men whose return to office was hoped for by the public—M. Delcassé and M. Millerand. For a few days longer personal and party animosities kept them out.

The sitting held on the historic date of August 4 was profoundly impressive. President Poincaré's message and M. Viviani's address were received with enthusiastic acclamations; and the Bills necessary for national defence were passed unanimously without debate. There were eighteen in all; mention may be made of the following. One authorised the Government to issue decrees in Council of State opening the supplementary and extraordinary credits required by the needs of national defence, subject, however, to approval by the Chambers within the fifteen days next after their reassembling. Another provided for the grant of allowances to necessitous families of mobilised soldiers. A third authorised the extension of the note issue of the Bank of France from its actual figure of 6,800,000,000 francs (272,000,000l.) to 12,000,000,000 francs (480,000,000l.); another prolonged the period at the termination of which commercial bills would fall due. Another established the state of siege in France and the colonies. Another, again, permitted the incorporation either of commissioned officers or of privates of the Territorial Army into the Field Army, or conversely. Finally, there was a Bill to put a stop to indiscreet revelations on the part of the Press. When the Government had been invested with these very extensive powers, the Chambers were prorogued sine die, and the whole strength of the country rallied to meet the crisis, unprecedented in history, which had imposed this sudden strain. In the very first days of the war reassuring symptoms appeared. The Press resigned itself to strict censorship; the preparations for mobilisation were soon seen to have been skilfully co-ordinated; within a few days the regiments of the second line were ready to leave to rejoin the covering troops already stationed along the frontier. The great work of concentration was carried out with a marvellous punctuality and precision which aroused general admiration. The Northern and Eastern Railway companies adapted themselves most skilfully and readily to a task which was made even more complicated in that the German violation of the neutrality of Belgium compelled the French General Staff to make its principal effort in a different direction from that contemplated beforehand. The King of the Belgians on August 4 had appealed to France, Great Britain, and Russia to co-operate for the defence of Belgium as guarantors of its neutrality, and had declared that the defence of the Belgian fortresses would be undertaken by Belgium herself. There was, therefore, reason to expect that the abrupt German attack in the north would be so retarded by the resistance of Liège and Namur as to permit the British and French forces to come to the assistance of the Belgians. Consequently it was decided that the French Armies should take the offensive in Alsace and Lorraine in such a way as to attract to this region the greatest possible number of the invaders. As it was stated that Austria-Hungary had sent Slav regiments to the Rhine, France recalled her Ambassador, M. Dumaine, from Vienna, and gave the Austro-Hungarian Ambassador in Paris, Count Széczen, his passports on August 10. By prolonging the ambiguity of her attitude for nearly a week, Austria-Hungary had hoped to compel France to declare war on her, and thereby to enable her to call on Italy to fulfil her treaty obligations. This measure, however, proved futile; for, by her despatch of troops, and especially of howitzers, Austria-Hungary had manifestly taken the initiative in making war.

While Belgium was holding back the invasion by the north, the French Army on the extreme right made its way into Alsace by the Gap of Belfort and the passes of the Vosges. It was commanded by General d'Amade, who had previously been in command of the Corps of Observation in the Alps, and who was available for other service owing to the certainty that Italy would remain neutral. The first conflicts were favourable to the French. Altkirch and Munster were carried, and on August 6 the French outposts were enthusiastically welcomed at Mulhouse. But the forest of the Hardt and the heights situated beyond the town had been protected by a very strong system of defences. While General Joffre, the French Commander-in-Chief, issued a proclamation promising the Alsatians that they should be restored to France, the German Commander, General von Demling, was strongly reinforcing his defensive positions, and the French were overwhelmed by a heavy artillery surpassing their own field guns in number and range. They fell back; the people of Mulhouse, who had openly welcomed them, were shot by the Germans without mercy. General d'Amade was superseded by General Pau; but it was recognised that it was through inadequate information that his advance had failed; and some days later he was sent to Arras. General Pau made great efforts to resume the attack, he was supported by part of the troops from Algeria, who had crossed the Mediterranean without incident, and had been brought to the front with praiseworthy speed by the Paris, Lyons and Mediterranean Railway; and also by the Chasseurs Alpins, for whom on the South-Eastern frontier there was nothing now to do. By three weeks' desperate fighting the French recovered the plain of Alsace up to the gates of Colmar, and obtained control of the high valleys of the Vosges. But meanwhile the armies of the Ardennes and Lorraine were attacked by forces so greatly superior that the continuance of the work of liberating Alsace had to be given up. General Pau was ordered to retire. He contested every step of his retreat; created positions defending the passes through the Vosges, furnished General Thévenet, the Governor of Belfort, with the troops necessary to hold the enemy in check between the Ballons and the Swiss frontier, and emerged from the struggle with his prestige increased. On August 26 the French offensive in Alsace was suspended; and up to the close of the year this region took a secondary place. Strongly defended by the 21st Corps, whose officers had previously familiarised themselves thoroughly with the country, and by the Alpine troops, it became as it were the bastion on which the extreme right of the French Army might safely rest.

More serious consequences resulted from the miscalculation made by the French Government on the front towards Lorraine and Belgium. As it had expected a sudden attack directed on the right bank of the Meuse and along the Moselle, the bulk of the French forces had been divided between the Vosges and the Meuse. French Flanders was, at the very first, left undefended. The town of Lille was protected only by forts of which the construction dated as far back as the first conceptions formulated in 1875; not one was constructed of concrete or provided with cupolas. The heavy guns had been partly sent to the fortresses of the North-East or to the sea front. Maubeuge was better off, though its defences were not equal to those of Verdun, Toul, or Épinal, which were fairly good. Now, if the invasion came—as it actually did—by the left bank of the Meuse and the Gap of the Oise, the defensive position of the North would serve as a point of support to an army threatening the flank of the invader. Were this point of support lacking, the French would be in great danger of having their left flank turned. This danger was destined to influence the whole of the first part of the campaign, after the repulse of the French attempts to advance. In fact, contrary to the expectations entertained at the outset, the Army of Lorraine, under General de Castelnau, had not been attacked since hostilities began. Holding back the army of the Crown Prince of Bavaria, which had crossed the Schirmeck and Donon passes in the Middle Vosges, and was advancing on Lunéville, it had succeeded in forming before Nancy a very strongly entrenched front, which became famous as the Grand Couronné of Nancy, and then had moved forward in the direction of Metz. On August 12 it attacked the Germans at Pont-à-Mousson and Pagny, and drove them back on its left, while on the right it retook Blamont and Cirey, and then advanced rapidly on August 16 and the days following, retook the passes of St. Marie-aux-Mines and Bonhomme, occupied Sarrebourg, and pushed its cavalry forward as far as Château-Salins. But on August 20 it found itself confronted with the entrenched camp at Morhange, and met with a serious check. Its attack was stopped short by forces superior in number, and some of its units were seized with panic. The energy of the commanding officers coped successfully with these weaknesses, and the retreat on Nancy was carried out in good order. By successive stages, General Castelnau retired on the defensive positions of the Grand Couronné of Nancy, and held it with vigour. For three days (Aug. 22-24) his position was most critical, and his army suffered heavy losses. On the 25th reinforcements arrived under the command of General Dubail. The environs of Nancy were freed of the enemy by a decisive counter-attack; and when, a fortnight later, the German Emperor himself came to preside over a series of desperate efforts to capture the capital of Lorraine, it was too late. The Grand Couronné held out; and the Germans were compelled to evacuate Lunéville, which for several days they had occupied. Nancy, Toul, and Verdun thus formed as it were a barrier serving as a support for the victorious right wing of the French Army while holding back the tide of invaders pouring in from Luxemburg and Belgium.

On the west centre General Joffre, the Commander-in-Chief, had, as it proved, to face terribly severe ordeals. On August 10 the Crown Prince William's army had entered France by the Gap of Tiercelet; it had invested Longwy, carried Spincourt, and encroached on the fortified area of Verdun; but the unexpected resistance of Longwy and the invincible strength of the advanced works of Verdun delayed its march, and thus permitted the armies of Generals Bülow and Von Kluck to play the leading part during this period of the war. These two generals had made their way into Belgium, and found themselves faced by the two armies of General Ruffey and General de Langle de Carry, which had the British Expeditionary Force on their right, supported by General Lanrezac. On August 15 Dinant was occupied by the French wing, which General Joffre had been compelled to push forward beyond the lines of defence he had chosen. It took more than a week for the two armies of Generals Ruffey and de Langle de Carry to reach the front. The great conflict took place on August 22, on the wooded plateau extending along the right of the Meuse. The Germans had had time to entrench and to bring up heavy artillery, the effects of which for a time upset the French resistance. The French losses were immense; some army corps, the 11th among others, lost almost all their officers, and were compelled to retreat. The Germans advanced rapidly by both banks of the Meuse. The fall of Namur (Aug. 25) and the sanguinary conflict at Charleroi enabled them to enter France. Their daring tactics, their use of armoured motor-cars, their superiority in machine-guns, above all the overwhelmingly large proportion of their effectives, allowed their opponents to do no more than honourably contest the ground, retreating all the time. On August 24 General Lanrezac retired on Givet; on the 25th the British Army took up a position of resistance to the invaders on the line Cambrai-Le Câteau-Landrecies; but the day following it was attacked by five German army corps, and, in spite of the admirable behaviour of General Smith-Dorrien's division, it was compelled to continue its retreat. The situation of the Anglo-French Army then became extremely critical. It was threatened with envelopment on its left flank by a great turning movement of the enemy, who had masked Maubeuge and were pouring in by the North. Contrary to the views of General Percin and General d'Amade, and at the request of the civilian authority the fortified town of Lille had been declared an open town on August 24 and hastily evacuated. Flanders and Artois were swept by the cavalry and the advanced guard of the German Army; the bulk of the troops were advancing by stages of forty to forty-five kilometres daily (twenty-five to twenty-eight miles). All seemed lost.

This news produced an immense effect in Paris and throughout France, although the official bulletins were sparing of information, curt, and ambiguous, and no other source of intelligence was permitted by the censorship. General Joffre complained that he was thwarted in his plans by the War Minister; the Ministry seemed too exclusive in its composition at a time when mere politics were out of season. M. Viviani recognised the need and rapidly took his decision. On August 26 he announced to his colleagues that he proposed to resign, a step which entailed their doing likewise; but in his case it was a mere feint, for he was at once charged to reconstruct the Government, and on August 27 the Journal Officiel published the list of the new Ministry of National Defence. M. Viviani remained Prime Minister; M. Briand became Minister of Justice and Vice-President; M. Delcassé triumphantly returned to the Ministry of Foreign Affairs in place of M. Doumergue, who became Colonial Minister; M. Ribot became Minister of Finance, M. Millerand Minister of War, M. Sembat took the Ministry of Public Works, succeeding M. R. Renoult, M. Bienvenu-Martin was given the Ministry of Labour in exchange for that of Justice; the five remaining posts were retained by their previous holders. To emphasise the wide range of the new combination, M. Jules Guesde, a Unified Socialist, was made a Minister without portfolio. As the Chambers were not sitting, the new Government published a manifesto to the French people. "A conflict is in progress which, though of supreme importance, is not decisive. Whatever the issue, the struggle will continue. France is not the easy prey imagined by the insolence of the enemy." The Ministry was well received. M. Clemenceau himself gave M. Delcassé some degree of welcome. The "sacred union" came to find a more sure foundation in the common danger. General Joffre grew even greater amid his trials. The energy he exhibited was beyond belief; and, what was perhaps a phenomenon without precedent in France, he remained popular although he required his armies to undertake the thankless task of retiring while fighting, and of abandoning the richest and most populous regions of the country to the German invasion and German atrocities. Admirably supported by his subordinates and by General French, he superintended, without an instant of weakness, the strict execution of his programme. It consisted in holding on and lasting out; avoiding any decisive battle until the moment when the elements needed for success should all be present together, but giving ground without a real combat, so that the retreat should present the appearance of a calculated manœuvre, and not of a compulsory flight. Thus General Lanrezac and the British troops gave battle and fought hard at Guise and St. Quentin, while, on the extreme left, the army which General d'Amade had begun to reorganise passed under the command of General Maunoury, disputed inch by inch Picardy and the Beauvais region, and retired on Paris, while the troops of the 1st and 2nd military depots were gradually removed towards Brittany. Similar measures were taken in Champagne. General Langle de Carry and General Ruffey gave battle, and suffered heavy losses, respectively near Chateau-Porcien and Bazeilles; and the splendid behaviour of their troops retarded the progress of the enemy, and enabled almost all the rolling stock of the railways to be saved, with important results for the subsequent operations of the war. Finally General Dubail, firmly based on the fortresses of Lorraine, harassed the left flank of the Crown Prince's army, and the delay he caused to it proved to be an important factor when the decisive encounter took place before Paris.

In spite of their efforts, the French Generals did not succeed in stopping the furious inrush of the invaders. Paris was threatened, and, what mattered even more, the railways were choked. The great railway stations from which the traffic was regulated, and whose working in August had exhibited a marvellous activity and power of adaptation to new conditions, began to be overwhelmed with traffic. The provisioning of Paris and its suburbs was endangered. The civil and military authorities were overwhelmed by the influx of fugitives from Belgium and the invaded French districts, who fled in terror before the German atrocities. In these critical circumstances great energy was displayed by General Gallieni, the Governor of Paris, and by M. Delanney, the Prefect of the Seine. For a moment the idea had been entertained of declaring Paris an open town and making a stand farther back. This idea the new Ministry abandoned, and formidable outworks were improvised in advance of the forts of the first line of defence. Steps were taken systematically to clear the city of non-combatants; the numerous departmental associations in Paris undertook to despatch to the remoter provinces all the families who had originally come from them, while the roads radiating from the capital swarmed with motor-cars carrying wealthy families to the seaside resorts on the Channel or the Atlantic. These families had been unobtrusively encouraged to leave by the municipal authorities, or had fled before the rumours spread by unknown means. On September 2 the Government left for Bordeaux, and the people of Paris learnt next day from a proclamation by General Gallieni, as laconic as it was emphatic, that he would do his duty to the end. But there was no need: for meanwhile the great Battle of the Marne had begun, and it was destined to relieve him from the necessity of imitating Palafox at Saragossa or Rostopchin at Moscow.

General Joffre had decided to retire, if necessary, as far as the Seine to check the invader, but a series of favourable circumstances enabled him to give battle before Paris on the North, and along the Marne and the Grand Morin on the South. At the moment when people were expecting to see the German masses press on the northern front of the entrenched camp of Paris and attack it by the space intervening between the forest of Montmorency and the Marne, they were seen to be turning abruptly to the South-East and transferring their efforts to the line of the Ourcq, Meaux, and Coulommiers. All was ready for its reception. On the left General Maunoury, reinforced by the troops of the Army of Paris and having on his right the British forces and those of General Lanrezac, now under the command of General Franchey d'Esperey, was about to hurl himself on the German right. At the centre was a new army formed since August 20 and placed under the command of General Foch, charged to hold the line between the Marne and the tertiary cliffs; it was faced by General Bülow's army. Finally on the right General Langle de Carry's and General Ruffey's armies, the latter now commanded by General Sarrail, were ready to receive the Crown Prince, who slackened his pace in his devastating march through Champagne. On the evening of September 5 General Joffre issued his famous Order of the Day: "A body of troops which cannot advance must at all costs keep the ground it has acquired, and be shot down where it stands rather than retreat. Under present circumstances there must be no giving way." On September 6 the fight began all along the line from Nanteuil-le-Haudouin at one end to Vitry-le-François on the other. The Germans advanced as far as Coulommiers and La Ferté-Gaucher, but, while the British stopped them at the crossing of the Grand-Morin, General Maunoury forced them back all along the Ourcq, and the Prussian Guard lost very heavily in the marshes of St. Gond. After five days of furious attacks the Crown Prince's army gave way, and, on the morning of September 11, General Foch re-entered Châlons-sur-Marne in triumph. Bülow and Kluck had been drawn farther back, and the French Commander-in-Chief was able to announce to the Army and to France that the battle was won. Paris was saved.

Meanwhile the Government had established itself at Bordeaux, and had invited the members of the two Chambers to go there also, to keep in touch with it. Most of the deputies for Paris had preferred to remain among their constituents, and, as the session had been closed by decree, the presence of deputies or senators on the banks of the Garonne involved more inconvenience than advantage. There was some idea of sending the best speakers among them about the country to explain the origins of the war and the vicissitudes of the campaign; but the Press, in spite of censorship, was amply sufficient for this work; and the Ministry, though it prepared the two chief theatres of Bordeaux to receive the Chambers, if needful, abstained from subjecting itself to their control. This course, however, was approved by the great majority of the nation, which evinced a praiseworthy spirit of resignation amid the varied trials imposed on it by the war. Gradually France became accustomed to the idea that the conflict would last much longer than that of 1870, and that firmness and endurance were needed in the spheres of economics and diplomacy as well as in the actual warfare. The hardest task fell to M. Ribot, the Finance Minister. Means had to be found of supporting not only the Army and Navy, but the civil population, in order to protect from need those families whose bread-winner had been mobilised, and even those impoverished through unemployment. In the first days of the war committees had been formed to provide allowances for women deprived of a husband or son, and for their young children. These committees had adopted different rules in different places, and their proceedings gave rise to acute complaints. It was determined that the State should make itself responsible for the support of the families of the men mobilised, that the municipalities, aided eventually by the State and the departmental authorities, should provide subsidies in aid of the unemployed, whether by gifts in money or aid in kind—food, fuel and clothing. Great service in these circumstances was rendered by the Bank of France, whose aid was the more appreciated inasmuch as the issue of National Defence Bonds which the Treasury had striven to arrange on the first days of the war had not found entirely adequate response. The Ministers of War and of Public Works, M. Millerand and M. Sembat, were harassed by complaints on the subject of transport; the victualling of the Army and the provisioning of the towns seemed likely to be paralysed by the overcrowded condition of the railways and the ports. In defiance of the censorship, M. Clemenceau actively attacked the abuses set up by political or social favouritism, through which a considerable number of young men evaded their duty as patriots, and remained ensconced in the public offices, or were rejected on medical examination through favouritism. Provision had also to be made to replace the immense quantity of ammunition and war material consumed on the battlefields. The indefatigable War Minister grappled with the difficulties, the manufacture of heavy guns was pushed on with amazing energy, and ample amends were made for the inferiority from which the French troops had suffered so severely in the first days of the war. General praise was expressed, too, for the skilful management of the supply services; the Army, well fed and largely strengthened by new levies, was enabled confidently to continue its work. It knew that the conflict would go on until exemplary chastisement had been administered to the aggressor. Far from keeping "the nation in arms" in ignorance of the causes and vicissitudes of the gigantic struggle in which it was engaged, the Government established and issued an "Army Bulletin," in the preparation of which the most eminent writers held it an honour to take part, and which gave the troops the most essential items of news and kept up their hope and emulation.

This, indeed, was eminently needed, for the warfare was just about to take on a new character little in accordance with the instincts of the French soldier. After the victory of the Marne, the Germans had at first been pursued vigorously, in spite of the fatigue and the losses suffered by the Allied troops. The Crown Prince's army had been thrust back into the forest of Argonne and was with difficulty holding its ground before Varennes; it held in great strength the commanding mass of hills known as Montfaucon, and was being considerably reinforced; but, in the centre, the French on September 13 hurled themselves against a formidable line of entrenchments, of which the eastern pivot was formed by the forts of Reims, while its right was supported by the quarries of the Soissons district. The forts of Reims had been precipitately dismantled by the French in the early days of August, and subsequently restored by the Germans; the quarries had been minutely explored for a long time before the war by German spies, and recently furnished with powerful guns. A new battle now began, termed the Battle of the Aisne. It was destined to last till the end of September; and it comprised two series of operations. One set was tactical; the armies whose alignment has been described above—General Dubail's in Lorraine, General Sarrail's in the Woevre region, General Langle de Carry's in the Argonne, and General Franchey d'Esperey's in the Reims district, forced back the troops opposed to them step by step, and fought battles in which the chief part was played by artillery, and which consisted in attacks and counter-attacks designed to carry fortified positions. General Maunoury and Sir John French held the Soissons district and made their way slowly along the Aisne and the Oise. But the Germans put new troops in the fighting line, and brought back from the Eastern front part of the forces taken from the Western front in August to clear East Prussia of the enemy. Further, they withdrew troops in considerable numbers from the northern Vosges, and sent the army of the Crown Prince of Bavaria to the north-west. All this caused strategic movements, responded to by similar manœuvres on the side of the French. The Germans took the initiative as occupying a central position, while the French line overlapped theirs. They strove, therefore, to turn it, and to envelope the Allies' left. General Joffre replied by a rapid change in the position of his effectives. Reinforcing General Dubail's army by new regiments formed in the West and centre of France, and filling in full measure the gaps left in his former units by drafts from the depots, he despatched General Castelnau's army to the right of the Oise, where it took the place vacated by the British troops. These latter proceeded to cover Artois and Western Flanders, together with General Brugères' Territorials and the rest of the troops that could be spared from Lorraine, under the command of General de Maud'huy. These movements were carried out with great precision; and, by a curious coincidence, the French regiments from Lorraine found themselves faced by the same Bavarian troops that they had fought between Épinal and Nancy some weeks before. Thus was accomplished what has been termed the race to the sea, and a definitive check was given to the plan of the German General Staff for enveloping the French left.

While these immense movements of troops were being effected, the conflict raged, more especially at the centre, where General von Kluck was striving to break the junction in the square marked out by the French lines. Firmly established in the forts at the north of Reims, he had revenged himself for his inability to capture the town by bombarding the cathedral, on which, from September 13 to the end of the year, the work of destruction was to be persistently directed every time that a German attack was repulsed. In the Soissons district furious attacks were sustained by the British troops. The Battle of the Aisne, taken as a whole, ended in a success for the Allies, for the discomfiture of the Germans was such that the Emperor deprived General von Moltke of his post as Chief of the General Staff, replacing him first by General Voigts-Retz, then by the Minister of War. The Crown Prince, who had not been very successful in the conduct of the operations on the left, was replaced by General von Einem, and, after a mysterious eclipse, was sent to the Eastern front. The weakness of the German Army lay in the inadequacy of the chief command.

During October the chief interest of the struggle centred in the northern area of the war. The Belgian Army had evacuated Antwerp on October 9, and, with the aid of a landing force of British marines and bluejackets, and a British squadron lying off the coast, it had escaped the German grasp and retired, first on Ostend, then on the coast district of West Flanders. The Belgian Government established itself at Havre, while King Albert encouraged by his presence the remains of the organised forces of the Kingdom. The modest nucleus was destined to be increased rapidly by the reinforcements provided by the enrolment of all Belgians of military age who had fled before the invasion. To these General Joffre added a new army under the command of General d'Urbal; and, as this vast distribution of forces required that the command should be strongly organised, he took two coadjutors; and one of these, General Foch, was charged with the direction of the operations of the armies of the North, the other, General Pau, was concerned primarily with the armies of the East, and might, if necessary, take his own place as Commander-in-Chief. Thus the French armies were satisfactorily co-ordinated and combined; and all was ready to receive the new attack about to be made, under the personal supervision of the German Emperor, against the extreme left of the French Army. Twelve Army Corps and four Cavalry Corps were charged to break its resistance at all costs, and to reach Dunkirk and Calais, which were to serve as bases for the invasion of England. Under the pressure of this mass, sent to attack in deep columns regardless of the losses thereby imposed on the assailants, the Allies' troops were at first obliged to fall back to the Yser, and for three weeks, up to November 12, the result remained doubtful. But already the method of attrition employed by General Joffre and Sir John French was having its effect. The Prussian, Bavarian, and Würtemberg regiments had not the dash or the homogeneity of the troops that had invaded Belgium and France in August. The officers, commissioned and non-commissioned, were of very inferior quality; the greater part of the effectives consisted of soldiers who were either too young or too old, and were badly led; the superiority in artillery had passed to the defenders. The Emperor had to leave this theatre of war after the same lack of success as had marked his previous appearances on the front in Lorraine and Champagne. The German losses in the encounters collectively named the Battle of the Yser were estimated at 120,000. In accordance with the custom set up by the Germans, their long-range guns requited the humiliation inflicted on their troops by firing on the monuments of antiquity, and bombarded and completely destroyed the Cloth Hall of Ypres, a masterpiece of the Flemish architecture of the fourteenth century.

On the remainder of the front the struggle continued, and took on more and more the character of a war of siege. Instead of operations in the open field, both sides dug themselves into interminable trenches connected by tunnels through earth or rock, and strongly protected. In the aerial warfare the French and British airmen encountered the German Taubes and Aviatiks; fighting went on for weeks to capture or recover a wrecked and miserable village or a ragged clump of trees. In spite of all their efforts the Germans were unable either to recover Soissons or to capture Reims, or completely to invest Verdun. In the last-named quarter, after capturing St. Mihiel at the end of September, they had been compelled to confine themselves within the high ground along the Meuse, and to retire beyond Nancy, without, however, giving up all hope of returning to the attack. The winter campaign opened with the armies in this position of reciprocal defence. The war seemed likely to last much longer than had been expected at first, and to be a real war of exhaustion, in which the advantage would remain with whichever of the combatants displayed most obstinacy and tenacity.

However, it seemed improbable that the Germans would be in a position to resume their march on Paris; and the question arose whether the French Government should remain at Bordeaux. Indeed, in proportion as the war took on more and more the character of a chronic malady from which recovery would be lengthy, and as a renewal of the German advance against Paris became increasingly improbable, the inconveniences involved in the continued stay of the Government at Bordeaux were more keenly realised. In spite of the reticence imposed on the Press by the censorship, the bitter criticisms suggested to the people of the great south-western city by the influx of the strange crowd that swarmed round the public offices were echoed throughout France. Unpleasant comments were aroused by the contrast between the casual methods displayed in the fashionable restaurants of Bordeaux and the almost ascetic and Puritanical attitude of the people of Paris. The difficulties of communication hampered not only business, but even the action of the authorities. The deputies of Paris formed themselves into a group presided over by M. Denys Cochin, a Conservative member for the Department of the Seine; but it included also Socialists as well as Moderates. Without actually forming a State within a State, this body, unknown to the Constitution, speedily showed an activity with which the Government was compelled to reckon. It became the mouthpiece for all the complaints set up by the economic crisis with which Paris was struggling. Another group arose, that of the Senators and Deputies of the invaded districts. It made M. Leon Bourgeois its spokesman, and took up the defence of the interests, whether material or moral, of the populations of the North-East. The Ministry was quite aware of the hindrance to the war of which these particularist tendencies contained the germs; but they thought it more prudent to make terms. Various missions were entrusted to members of the Ministry; M. Briand, M. Sembat, M. Millerand, and even M. Viviani himself, repeatedly came to parley with representatives of Paris and the North-East. M. Poincaré twice left Bordeaux to visit the armies, and made one of his visits coincide with that paid by King George V. at the beginning of December to the British Expeditionary Force (p. [246]). This conciliatory policy bore satisfactory fruit. The feeling of the public generally remained excellent. A generous rivalry was exhibited by the different Departments. Many Departmental Councils, whose session had been delayed in view of the war, voted aid in money or in kind to the war victims and the refugees. The towns, the Chambers of Commerce, and associations of all kinds vied with one another in generosity, and, as the winter became more rigorous, paid ample contribution to the National Relief Committee, enabling M. Appel, its President, and his fellow-workers to meet all demands. In spite of the unemployment and the rise in the cost of living, the necessitous classes passed through this difficult time without great suffering.

Little by little, business began to recover. Great improvements had been effected in the management of the railways; from October onwards, the express services had been to some extent re-established on all the lines. In November the continued depression in the foreign exchanges had been stopped, the imports and exports were increasing again; so was the revenue from taxation, direct and indirect. On December 7 the Paris Bourse, which had been closed since September 3, resumed its operation for cash transactions. True the 3 per cent. Rente opened at 72.50, while before the closing it had remained firm at 75, but this latter price was due to the fact that the syndicate of agents de change had forbidden dealings at a lower figure. The market was not swamped, as had been feared, by the offer of enormous masses of securities; the provincial Exchanges, at Lyons, Bordeaux, Marseilles and other great towns, which had continued open while the Paris Bourse was closed, had quietly absorbed a great part of the stocks offered. The political situation cleared up likewise. On December 8 the Government returned to Paris. M. Millerand alone of all the Ministers remained behind for a few days, his department requiring rather more time for its transference. The Chambers were summoned for December 22, to give legal sanction to the measures taken since August 4 by the Government. Their Committees had never had so much work, for it was really on them that the control given by the Constitution to the two Chambers had of necessity devolved. Though certain persons were impatient and some ambitions were disappointed, the truce of parties was maintained. If the Ministers favoured the Committees on the war, on foreign affairs, and on finance, with certain confidential statements not quite in harmony with the occasionally ambiguous optimism of the daily official war bulletins in the Press, the secrecy of these statements was well kept; the measures taken by the Ministry during the Parliamentary interregnum were collectively judged worthy of approval, and the innovations proposed were accepted. Among the measures taken mention must be made of the decree signed by M. Ribot on December 11, restoring to the paying Treasurers-General the prerogatives and advantages lost some years earlier; they recovered the right of obtaining on their personal credit the capital advanced by them to the State to give steadiness during the first months of the financial year. Among the innovations we must note the abolition in the Budget of 1915 of all the special accounts which had gradually grown up beside the account of current expenditure; repair of war material, naval construction, Morocco, reduction of succession duties in the case of direct heirs or of wives of soldiers killed on active service, and, finally, the suspension for 1915 of the complementary income-tax (p. [271]), in view of the impossibility of completing, while the war lasted, the formalities prescribed by the Finance Act of 1914. On December 22 and 23 the Chambers unanimously adopted the proposals of the Government. They had received with acclamation the dignified declaration of M. Viviani on behalf of the Ministry and the entire nation, that France, together with her Allies, would carry on the war to the end, and would not lay down her arms until the provinces torn from her by force were for ever welded to their French fatherland. A like greeting had been given to the fine Presidential address of M. Paul Deschanel in the Chamber, and to that of M. Antonin Dubost in the Senate. It was under this reassuring impression of unity and concord that the year came to its end. For the first six months of 1915 the Chambers voted credits of 8,525,000,000 francs (341,000,000l.). They also postponed till the end of the war all the elections, including the partial renewal of the Senate, due at the beginning of January, 1915. Everything was made subordinate to national defence, by the entire nation as by its representatives. Meanwhile the allied armies, firmly fixed in their trenches as if in winter quarters, continued, without much progress but also without retirement, the war of attrition which was gradually thinning the forces of the invader and drawing away their strength.

II. ITALY.

At the beginning of the autumn of 1911, and at the calmly calculated instigation of Signor Giolitti, Italy undertook to conquer Tripoli; and thereby she obliged herself to choose between two courses: either that of frankly denouncing, sooner or later, the treaty forming the basis of the Triple Alliance, or that of extricating herself from it with dexterity. Never, perhaps, had Italian diplomatic talent found itself confronted with problems of such complexity; unquestionably, on many occasions during 1914, it showed itself surpassingly skilful. The situation was dominated by three great facts: (1) the eclipse of Signor Giolitti, and the resultant developments of the parties in Parliament; (2) the declaration of neutrality with the skilful manœuvres which led up to the Italian landing at Valona; (3) the death of Pope Pius X. and the efforts of his successor, Benedict XV., to guard the prestige of the Church between Austria and Prussia on one side and France and Belgium on the other.

Signor Giolitti had repeatedly expressed a desire to quit public life; at the age of seventy he began to feel the weariness entailed on him by the difficulties of Parliamentary work. His determination was strengthened during the January recess. The Radicals were showing indications of independence. The Nationalists were agitating; their organs in the Press claimed that Turkey should indemnify Italy for the supplementary expenses entailed by the attacks of the Arabs in the Cyrenaica, who had been formed into military units by the officers and privates of the Ottoman Army who, despite the Treaty of Ouchy, had remained in Libya. They demanded railway concessions in Asia Minor, and M. Venizelos, the Greek Premier, came to Rome to confer with the Italian Foreign Minister, the Marchese di San Giuliano, on the subject of Epirus and the islands. The Socialists were making progress. On February 9 they secured the election to the Chamber by an immense majority of Amilcare Cipriani, who, by reason of the numerous convictions he had undergone, was ineligible. New votes of credit were necessary, and the day before the Chambers reassembled, the Ministry decided to ask the Chamber for new taxation, estimated to produce 47,000,000 lire (1,880,000l.), to be levied on buildings in construction, prices of admission to cinema shows, public carriages, furniture removers, and mineral waters, and also from Customs. On February 10 the debate began on the extraordinary expenditure entailed by the expedition to Libya. It was destined to last more than three weeks, and it would have dragged on longer, had not the Socialists decided to give up obstructing in return for an engagement by the Minister of Public Worship to introduce a Bill providing that civil marriage should invariably precede the religious ceremony. The debate was marked (Feb. 27) by a spirited encounter between Signor Giolitti and Signor Luzzatti. At last (March 4) the Premier summed up his African policy, and declared that he would not ask for a vote of confidence, but would merely request the House to pass to the consideration of the clauses of the Bill. His demand was granted by 361 to 83, with three abstentions. But some days later (March 7) the Radical group in Parliament adopted a resolution expressing the opinion that the time had come to lay stress on its distinctive differences. Two Ministers belonged to it; they resigned. The Socialists organised a one-day general strike in sympathy with the hospital attendants, a number of whom had been discharged; and at Rome this manœuvre had some success. On March 10 Signor Giolitti announced to the Chamber that he had resigned, and that the King had accepted his resignation. The Chamber adjourned.

The situation presented great difficulties, for the retiring Ministry retained its influence to the full, and its members continued personally to act on every branch of the Administration. A new Ministry had to be found pliant enough to accept its patronage, and with sufficient dignity to retain a certain degree of independence and maintain the prestige of office. Signor Salandra proved to be the right man for the occasion. His financial ability gave him almost the authority of a Luzzatti; his reputation for enlightened Conservatism enabled him to obtain sufficient help among the members of the Right to make up for the hostility of the Radical irreconcilables. He accepted the task imposed on him by the King at Signor Giolitti's suggestion; and on March 20 the new Cabinet presented itself to the Chamber. It was a Cabinet of concentration, containing no representative of the Extreme Right or Extreme Left, and consisting for the most part of the late Ministers. At the Ministry of War, General Spingardi was succeeded by General Grandi, who had declared that he would be satisfied with an extraordinary expenditure of 200,000,000 francs (8,000,000l.) spread over five years, while General Porro, whose appointment was favoured by the Chief of the General Staff, General Tassoni, demanded 325,000,000 lire (13,000,000l.). The Finance Bills had still to be examined again; some days were required for their further discussion, and it was only on April 5 that Signor Salandra was able to state his general policy. Before a crowded Chamber, he expressed himself with a firmness and geniality which assured him goodwill; he promised a policy which would maintain the dignity of the nation abroad and secure progress at home; wise reforms, educational, economic, and social, an honest Administration, and strict management of finance. With some modification, the Civil Marriage Bill would be carried through. The Chamber approved this programme by 303 to 122, with nine abstentions, and adjourned (May 6). The Senate adjourned the next day, after approving the Foreign Minister's declaration regarding the expenditure on Libya and the expected renewal of the Triple Alliance, and applauding his statement that the interview between the King and the German Emperor at Venice (March 29) had shown that the period of effacement was over for Italy, and that her friendship with Great Britain and France was firmly established.

The Easter recess had been marked by an agitation among the railway men, which was successfully allayed by Signor Ciufelli, the Minister of Public Works; by an interview between the Foreign Ministers of Italy and of the Dual Monarchy, the Marchese de San Giuliano and Count Berchtold, at Abbazia; and by an Irredentist demonstration of students at Rome, Genoa, Florence, Naples, and other towns. Signor Salandra closed the University of Rome (May 6). The Budget debate began on May 7, with the Estimates for the Ministry of the Interior; on the same day the Bill was introduced imposing the new taxation amounting to 90,000,000 lire (3,600,000l.). Replying on May 12 to a violent attack on the subject of the disturbances at the University, Signor Salandra defended himself with energy, and the Chamber gave him its support. On May 19, on the other hand, he took a conciliatory tone, promising that in the impending elections of Provincial Councils the Government would allow all possible latitude; but, some days later, in reply to questions put by Signor Colajanni, Signor Barzilai, and Signor de Felice, on the removal of the Prefect of Naples, he replied that the official in question had shown a lack of energy in the disturbances. This encounter was a mere skirmish; at the beginning of June the Socialists returned to the charge. Disturbances of a wholly exceptional kind swept like a cyclone over the essentially revolutionary areas of the Marches and the Aemilia. On Constitution Day, June 7, the Socialists organised demonstrations at Florence, Turin, Imola, and elsewhere; the army was insulted, the red flag hoisted, the troops fired on the crowd. The funerals of the victims intensified the disturbances; a general strike was called at Rome, but this was only the revolutionists' usual move; but what happened in Romagna was without precedent altogether. The State seemed to be collapsing all at once. Such towns as Ancona, and all the villages, declared themselves free communes; the authorities went into hiding, and, for some days, the excited insurgents were convinced that their example had been followed all over Italy, and that the Federal Republic had been proclaimed at Rome. The rising was promptly and severely repressed; the agitators who were most deeply implicated took to flight. At Rome the middle classes organised counter-demonstrations, and the Secretary of the General Confederation of Labour hurriedly sent out (June 10) a circular ordering the strike to be stopped. When the matter came before the Chamber, the Prime Minister demanded that its decision should be explicit and positive; a Socialist resolution regretting the attitude of the Government was rejected, on a vote by roll-call, by 254 to 112.

Amid the impression left by these events, the provincial and municipal elections were held, in batches, as is the rule in Italy, on the Sundays from June 14 to July 16. At Rome the Constitutional ticket was successful, as also at Brescia, Modena, Siena, and Reggio. At Rome, Don Prospero Colonna was elected Syndic; at Milan and Naples the Socialists won. The Parliamentary sittings became stormy; for the rest of June the Socialists persistently obstructed the financial proposals of the Government. Signor Chiesa (Socialist) even overturned the voting-urn; he was severely assaulted by other members and suspended for some days (June 25). Finally on July 3, Signor Carcano, leader of the Giolittian group, interposed, and induced the Socialists to give up obstructing. The vote of 90,000,000 francs was passed by 224 to 34; the minority consisted of Socialists, and 72 Radicals abstained. Two days later the Chamber adjourned sine die.

The Government remained master of the situation. Domestic policy lost all interest in view of the complications set up by the Austro-Serbian conflict. Italian diplomacy strove to secure that counsels of moderation should prevail; but it was obstinately set aside by the Austro-Hungarian Foreign Office, and naturally resented this treatment. Public opinion was indignant at the violence displayed by Austria towards Serbia, and clearly perceived that the interests of Italy were gravely menaced by a complete break-up of the Balkan equilibrium. The Government refused to comply with the demand of the Socialists, assembled at Milan, to call the Chamber together, but on July 30 it mobilised the Fleet and concentrated it not at Brindisi, but at Gaëta. This was at once a warning and a concession as a matter of form. On July 31 the Austrian Ambassador, Herr von Flotow, notified the Italian Foreign Minister of the delivery of the ultimatum to Russia and France, and demanded information as to the attitude which Italy proposed to adopt. The Minister replied that Austria-Hungary had not consulted her ally, and that he could not answer before consulting the Prime Minister. The decisive hour had come. Two days later, on August 2, Italy signified her neutrality, her reason being that the casus fœderis had not arisen, inasmuch as Austria-Hungary and Germany had brought the situation to the point where it then stood by their initiative alone. The day following Major Kleist brought King Victor Emmanuel an autograph letter from the German Emperor. The King confined himself to declaring that his Constitutional duty was to support his responsible Ministry. Thus Italy took up officially an attitude of expectant and vigilant neutrality. She was destined to observe it till the end of the year, in spite of the pressure exercised by the advocates of intervention—Radicals, Liberals and Nationalists—who demanded an invasion of the Trentino and Istria. The Socialists, on the contrary, delivered impassioned speeches in favour of systematic and absolute neutrality. The armed peace and the economic disturbance required expenditure and special precautions. On August 4 a moratorium was established by decree; repayments of deposits and on current account were limited to fifty lire, and the maximum of currency issue permitted to the banks was increased. The resentment caused by this "betrayal" on the part of Italy was very acute in Germany, and still more in Austria; it showed itself by outrages on the numerous Italians employed in the mines and quarries of the basin of the Moselle, outrages in sharp contrast with the consideration and generosity of the French authorities, for which the Italian Ambassador at Paris, Signor Tittoni, tendered the cordial thanks of his Government.

The death of Pope Pius X., on August 20, gave the Ministry the opportunity of exhibiting an entirely correct attitude towards the Holy See. The Conclave opened on August 31. There were three parties in it; The Right, Conservative, directed by Cardinals Merry del Val and Billot, and inclined to vote for Cardinal de La[~i]; the Centre, led by Cardinals Pompili, Serafini, and Gatti, and putting forward Cardinal Ferrata; the Left, headed by Cardinals Agliardi, della Chiesa, and Amette, hesitated between Cardinals Gaspari and Maffi. But the Italian proverb, "He who enters the Conclave as Pope leaves it as Cardinal," was verified once more. After sixteen ballots Cardinal Agliardi pronounced the name of Cardinal Della Chiesa, who was elected on September 3 and took the name of Benedict XV. He was a professed diplomatist, and had been a collaborator of the late Cardinal Rampolla. He had only been a Cardinal for three months, and was Archbishop of Bologna. He had to define his course of conduct in the European struggle almost at once. The Belgian Cardinal Mercier, Archbishop of Malines, was destined, in returning from the Conclave, to come into conflict with the Germans, who had destroyed Louvain and Malines, and who prevented him from communicating with his suffragans and his flock. Contrary to general expectation, the new Pope did not take up with sufficient energy these encroachments on ecclesiastical prerogatives. His policy appeared to be timorous and the result was a revival of Gallicanism among the French clergy. Thus, when at the end of the year the Holy See enjoined all the Episcopal authorities to cause prayers to be offered for the restoration of peace, it met in France with an almost universal resistance. The Bishops refused to allow the Pope's words to be read without qualification; they were communicated subject to the reserve that there could be no question of any peace which did not safeguard the rights of the French nation. It was a bad beginning for the new Pope.

In contrast with this weakness on the part of the Roman Curia, the Government of the Italian kingdom adopted an attitude which was at once pliant and firm. Germany had been unable to resign herself to the neutrality of Italy; she resorted to every possible means of reviving the Gallophobia prevalent in the country under the rule of Crispi. A leading German Social Democrat, Herr Sudeküm, was sent to the Italian Socialists on a mission of instruction; they protested against the destruction of Louvain, and affirmed their sympathy for France, the "defender of civilisation"; they declared that they supported neutrality, but that, if the Italian Army attacked the Allies, they would rise in insurrection. This clumsy move on the part of Germany seemed at the moment to produce no effect on the Italian Government, but some days later (Sept. 3) the Fleet left Gaëta for Taranto, and troops were concentrated in the neighbourhood of Verona and Brescia. As it was rumoured that, in the event of a breach with Austria-Hungary, Italy would be attacked by a German Army coming from the St. Gothard, Signor Salandra notified the Swiss Government (Sept. 24) that Italy, which did not exist as a State in 1815, would formally adhere to the recognition then entered into of Swiss neutrality. Three days later the classes of 1884 to 1888 were mobilised, thereby raising the total of the effectives in the Italian peninsula to thirty army corps. At the same time an important change was made in the Ministry, General Grandi, who had not been able to come to an understanding with the Chief of the General Staff, resigned, and was succeeded by General Zupelli (Oct. 11), but, as the Marchese di San Giuliano died on October 16, a general reconstruction of the Ministry became inevitable. Signor Salandra resigned on November 2, and was again made Premier by the King. He made Signor Carcano, Signor Giolitti's second in command, Minister of Finance, and Signor Orlando Minister of Justice; and, some days later, the Ministry of Foreign Affairs was accepted by Signor Sonnino. This latter greatly increased the activity of his Department; he summoned to Rome successively all the diplomatic representatives of the King at foreign Courts, and thoroughly convinced himself of the necessity of remaining for some time longer in an attitude of expectancy. The Chambers were summoned to sanction the financial measures taken by Royal decree, and to approve the international policy of the Government. The session was short, but productive. On December 4 the Ministry made a statement which was well received, and the question of neutrality was closely debated. The greatest sensation of the debate was the disclosure made by Signor Giolitti (Dec. 5) who read a despatch received by him as Prime Minister in August, 1913, and proving that at that time Austria-Hungary desired to attack Serbia and appealed to the Triple Alliance, but that Italy had refused her aid. Signor Giolitti concluded his speech by assuring the Government of his support, and thenceforward all its difficulties were solved. By 413 to 49 the Chamber accorded the Salandra Ministry a vote of confidence (Dec. 8), and thus it was understood that Italy was to preserve her attributes as a Great Power and to be ready at any moment to intervene if necessary. The Triple Alliance, which had not been actively denounced, was thus virtually dissolved.

To prevent Italy from turning against the Germanic Powers, the German ex-Chancellor, Prince Bülow, whose personal connexions at Rome were very extensive, was sent there as Ambassador Extraordinary, taking the place of Herr von Flotow. This mission, which was announced very loudly, was coldly received from the first by the Liberal party and the Italian Press. He waited to present the letters accrediting him as Ambassador till the Chambers had adjourned for the recess. The Senate adjourned on December 18, the Chamber on the 19th, after having accorded the Ministry the votes of credit which it demanded, passed the military Bills, and sanctioned a loan of 1,000,000,000 lire (40,000,000l.). Before the week was over, the Italian Fleet, under the command of Admiral Patris, effected without incident a landing at Valona. Italy did not yet side definitely with either set of combatants, but she took possession of an important pledge, thus signifying her firm intention not to allow herself to be neglected when the time came for a final settlement in the Balkans. This was a first step; Austria-Hungary, which had so categorically opposed an operation of the same sort in 1911, on this occasion made no objection. Times were changed.

FOOTNOTES:

[5] The interest would be paid without deduction, but the holders of Rente would have to pay the tax subsequently.

CHAPTER II.
GERMANY AND AUSTRIA-HUNGARY.

I. GERMANY.

Germany, the protagonist of the great European War, though she professed to pursue the same policy this year with regard to the quarrel between Austria-Hungary and Serbia as she did in 1908 and 1913 (A.R., 1908, p. 311; 1913, p. 321), now found herself in a position where mere threats, even if expressed "in shining armour," would not have sufficed, for her ally was entering upon a struggle on which she believed her very existence depended, and Russia had nearly completed the reorganisation of her Army, while Germany had made hers ready to strike at any moment. The Militarische Rundschau declared in July that "if we do not decide for war, that war in which we shall have to engage at the latest in two or three years will be begun in far less propitious circumstances. At this moment the initiative rests with us: Russia is not ready, moral factors and right are on our side, as well as might. Since we shall have to accept the contest some day, let us provoke it at once. Our prestige, our position as a great Power, our honour, are in question; and yet more, for it would seem that our very existence is concerned." This, however, was only the view of the military party and the Pan-German professors. The mass of the people did not want war, and it was only when they were deluded into the belief that the war had been engineered by the British Government, with France and Russia as its tools, that they were filled with a bitter hatred of England and determined to fight to the last in defence, as they thought, of their country. One of the most popular books in Germany during the autumn was one entitled "Edward VII., the Greatest Criminal of the Nineteenth Century," and all foreign newspapers and books on the war were rigidly excluded, while the fanatical outburst known as "the Hymn of Hate for England" was distributed among the troops in the field. Its author received a decoration, and its sentiments were held to be justified by the supposed criminal plot of Great Britain and her allies against the existence of Germany. The German Government of course knew better; Herr Maximilian Harden described in his usual downright way its real motives as follows: "We are fighting not to punish criminals or free oppressed nationalities, but to get more room in the world for ourselves. Other nations, Spain, the Netherlands, Rome, Austria, France, England, have been at the helm, it is now our turn. It is folly to try to justify our encroachment on Belgian neutrality by saying that France and England would otherwise have done so."

The earlier part of the year was almost entirely occupied in Germany with the Zabern incidents (A.R., 1913, pp. 318-21), and the discontent in Alsace-Lorraine. Colonel Reuter and Lieutenant Schad were tried by a military court at Strasburg and fully acquitted (Jan. 5-11). The Military Court of Appeal at the same time reversed the sentence of forty-three days' imprisonment passed upon Lieutenant Forstner for striking a lame cobbler over the head with his sword, on the plea that it was only an ordinary military sword and had not been specially ground for the occasion. Colonel Reuter in his defence claimed entire responsibility for the acts of his subordinates, as he was "a Prussian officer and executed the orders of his King." He referred, apparently, to a Cabinet Order cited by the King of Prussia in 1820, when Prussia had no jurisdiction in South Germany; and the court held that this order fully justified his action, as it was applicable in every country where a Prussian officer happens to be. In Bavaria and Würtemberg, however, it was officially stated that in those countries there was not the slightest authorisation for independent military action in such cases (Jan. 14, 28). In the Prussian Upper House Count Yorck von Wartenburg complained that the representatives of the people had not displayed the national sentiment to be expected in the centenary year of the War of Liberation, as they were trying to strengthen the Reichstag at the cost of the Emperor, the Federal Council, and the separate States. The Reichstag was interfering in all directions, and had presumed to censure the Prussian Premier. Imperial laws were being passed by which "the King of Prussia lost more than the Emperor gained," and the Army must not be exposed to democratic impulses, lest Germany should become like England, which had "a life President at the head of a Republic." The Chancellor stated in reply that Prussia had never overstepped the restrictions she had placed upon herself in founding the German Empire, and that she was always supported in the Federal Council as the German dynasties were strong believers in unity. As to the new power of members of the Reichstag to put short questions to Ministers (A.R., 1913, p. 321), he promised to do everything he could to prevent the answering of questions from causing encroachments upon the Executive, adding that "votes of censure merely established the fact of a difference of opinion in a particular case between the Reichstag and the Imperial Chancellor." The Armament Inquiry Committee had "no right of control whatever," and it had been a great satisfaction to him during the past few weeks to see "how the heart of the whole Prussian nation is stirred as soon as the honour of the Army is affected. To preserve this Army, led by its King, against all attacks, and to prevent it from becoming the Parliamentary Army of which Count Yorck has spoken, is the passionate desire of every Prussian who is true to the Constitution."

On January 20 the Upper Chamber of the Diet of Alsace-Lorraine, consisting almost entirely of nominated and official members, carried a resolution expressing the opinion that the trouble at Zabern could have been prevented "if the military authorities had dealt promptly and adequately with the unworthy, insulting, and provocative behaviour of Lieutenant Forstner"; also that Colonel Reuter went far beyond his rights, and that guarantees must be given that such things should not occur again, and especially that the law should be respected absolutely by the military authorities. In the Reichstag (Jan. 24) the Chancellor, in reply to Social-Democratic and Radical interpellations, said that in civil disturbances the military could, as a rule, intervene only on the demand of the civil authorities, but that "the Prussian Constitution recognised expressly and in principle that in exceptional cases a demand from the civil authorities was not necessary," and that it reserved the subject for special legislation which, however, had never taken place. The Cabinet Order of 1820, which was embedded in the Service Orders of 1899, was undoubtedly binding on Colonel Reuter, but in view of the doubt whether it was in accordance with the Constitution and the general principles of law, the Emperor had ordered an inquiry, and the Service Orders would be brought into harmony with the result. It was not true that Germany was under sabre rule, for the Zabern case was the only one in which the provisions of the Order had been applied. Alsace-Lorraine could not flourish except under a calm, uniform, and just, but at the same time firm, policy. The attempts to create differences between North and South must be nipped in the bud. Not one of the Federal States could exist without the united Empire, for which their fathers had shed their blood in loyal comradeship, all with the same enthusiasm, the same devotion, and the same courage. The debate was now mainly carried on by the Social Democrats, who indulged in the usual invectives against monarchy and especially against the Crown Prince, and the House finally carried by a large majority a motion of the Centre party asking the Federal Council to see that the conditions of military intervention in police matters should be determined with uniformity and in a way securing the independence of the civil authority. A National Liberal motion was also carried, asking the Imperial Chancellor to inform the Reichstag of the result of the promised inquiry, and referring to a Committee of twenty-one members Bills proposed by the Socialists, the Alsatians, and the Radicals in regard to military powers and jurisdiction. The Government answered these motions the same day by an official communiqué, stating that it was not the practice of the Federal Council to discuss motions so introduced, and that "the Constitution excluded the Legislature from all share in any alteration of the military Service Orders." As regards the attacks of the Socialists on the Crown Prince, a journalist named Leuss was sentenced on March 5, to six months' imprisonment for an article entitled "Wilhelm der Letzte" in the Welt am Montag, in which he spoke of telegrams said to have been sent by the Crown Prince to General Deimling and Colonel Reuter as an unwarrantable interference with the course of justice in the Zabern affair, and described a farewell order issued by the Crown Prince to his regiment, in which he said that the highest joy of the soldier is to ride against the foe, as an outburst of bellicose feeling calculated to revive Republican ideas and to raise doubts whether the hereditary principle should not be abolished and Princes be pensioned off. The editor of the Socialist Vorwärts was also sentenced on March 6 to three months' imprisonment for a parody of the Crown Prince's farewell to his regiment. Another of the Prince's indiscretions was the sending of telegrams in July to the authors of Chauvinistic pamphlets which he described as "excellent"—one entitled "the Hour of Destiny," by Herr Frobenius, which called upon Germany to be prepared for a war in 1915 or 1916 against France, Russia and England, "who will not miss a favourable opportunity of attacking Germany," and the other by Professor Buchholz, inveighing against the "weak Governments" which had directed Germany since Bismarck and allowed democracy to make "frightful progress."

The decision of the military courts at Strasburg on the Zabern affair and the Chancellor's speech on the subject were followed by the resignation on January 29 of the Statthalter or Governor of Alsace-Lorraine, Count Wedel, and all the principal members of his Ministry. Count Wedel was succeeded on May 1 by the Prussian Minister of the Interior, Herr von Dallwitz, whose place in the Ministry was taken by a retired official, Herr von Löbell, formerly head of the office of the Imperial Chancellor and Prince Bülow's political manager. A new Army Order was also issued in April suppressing the ancient privileges under which Colonel Reuter had acted, but the new Statthalter refused in July to confirm in office the Burgomaster of Zabern, who had been re-elected by a large majority of the Town Council, and had defended the rights of civilians in the Strasburg trial. An agitation was now started by the Conservatives in Prussia for stronger action against all the border races. As regards the Danes the Minister of the Interior stated in the Budget Committee of the Prussian Diet on February 1 that the Law Officers had been instructed to keep a sharp control over the Danish Press in Schleswig-Holstein, and Danes from across the frontier were forbidden to go to the Danish club-houses on Prussian territory, even when not used for political agitation. Everything possible was being done to strengthen the German element in Schleswig-Holstein. German proprietors were assisted by the State, German libraries had been established, and German elementary high schools on the Danish model were started in order to check the emigration of young people across the border. Further, on May 26, the Chancellor, in reply to an interpellation signed by more than sixty members of the Upper House of the Prussian Diet accusing Denmark of undermining Prussian authority in Schleswig-Holstein, said he must admit that as a consequence of the excessive agitation against Germanism the situation in the north was unsatisfactory. Prussia was negotiating with Denmark on the question of the people who have no definite nationality, but would cling to the determination not to accept them as Prussian subjects (A.R., 1907, p. 294). The dreams of an incorporation with Denmark would never be realised. Among the Poles in Prussia, too, it was a bitter grievance that though sermons might be preached in the Polish language, the Communion might not be administered in Polish, and in a Roman Catholic Church in the suburb of Moabit in Berlin about seventy Polish children entered in procession after the Polish sermon and sang Polish hymns, upon which the police entered and with considerable effort cleared the church. Another Polish grievance was that the German Eastern Colonisation Society (Ostmarkenverein) whose object was to strengthen the German element in Posen and Silesia, had been trying to carry the war against the Poles into Austrian territory in Galicia by inciting the Ruthenian against the Polish workmen, and on February 25 the police raided the two chief Polish newspapers in Posen in order to discover evidence of the theft of documents quoted by them in proof of the charge against the Ostmarkenverein. Heated debates took place on the subject in the Prussian Diet, but no evidence of the alleged theft was discovered.

Important statements on Anglo-German relations were made to the Budget Committee of the Reichstag on February 4 by Grand-Admiral von Tirpitz and Herr von Jagow, the Foreign Secretary. The former said that from the technical point of view he had nothing to add to or subtract from his statement of 1913. The ratio of 16 to 10 offered by Great Britain was still acceptable to Germany if it referred to battleships only; but the idea of "a holiday year" could not be realised. Positive proposals had not yet reached Germany; if they did, they would certainly be carefully examined. The naval estimates of foreign Powers had grown much more rapidly than those of Germany. During the last five years her naval expenditure had increased by 2,750,000l., that of Great Britain by 10,800,000l., apart from the expected supplementary estimate of 3,000,000l., that of France by 6,700,000l., and that of Russia by 15,100,000l. Herr von Jagow next stated that the present German relationship with England was one of thorough mutual confidence. In both countries there had been an increasing feeling that they could work side by side on many points and that their interests met in many respects. The events in the Balkans and the negotiations in London had contributed much to this result, and people in Great Britain had been able to convince themselves that Germany was not pursuing any aggressive policy. On February 20, however, Grand-Admiral von Tirpitz stated during the debate on the Navy Estimates that it was "not only an economic and political necessity for Germany to have her ships of war abroad as well as at home, but a military necessity also." If in recent years the German Fleet had been concentrated in home waters, this was due "to circumstances which need not be discussed more closely," but he trusted they would be "more active," with their Navy abroad, and he reminded the House that the contemplated number of German ships abroad, i.e. eight large cruisers, had not yet been reached. On June 25, during the British Naval visit to Kiel, the German Emperor, after inaugurating two new locks for the Kiel Canal, which had been made two metres deeper and doubled in breadth, and had reduced the distance between Kiel and Wilhelmshafen from 500 nautical miles to eighty, went for the first time on board a British Dreadnought, the King George V., and hoisted his flag as a British Admiral; enthusiastic speeches were delivered in the Town Hall by Vice-Admiral Sir George Warrender and the President of the German Navy League, and the bluejackets of both nations made merry together ashore.

On the second reading of the Army Estimates a remarkable statement was made by the Prussian War Minister as to the manner in which the Army Law (A.R., 1913, p. 307) had been carried out. Between July and October they had to arrange for the accommodation of 60,000 more men and 21,000 more horses. There had been no difficulty whatever about the recruits. On the contrary, there were 38,000 men perfectly fit for service whom they could not take.... There were now only about 3,000 vacancies among some 30,000 officers, and he thought that all the vacancies would be filled within two years—or at the existing rate of competition much sooner. The Army Bill had created 10,000 new posts for non-commissioned officers. Six weeks after the Bill came into force there were only 4,000 vacancies left, and these would probably be filled within the year. There had been no difficulty about the purchase of remounts. The money voted for frontier fortifications had been duly spent, and there had been very little trouble about the supply of new accommodation for the troops. The health of the Army had been splendid during the past year. Although orders to manufacturers, etc., could not be given until July, everything had been ready so quickly that on October 6, 1913, five days after the new Law had come into force, all the new units were ready and perfectly equipped for war.

On January 13 the Reichstag discussed a petition of the German League for Women's Suffrage demanding that women should have the equal suffrage with men in the Reichstag elections and should be eligible for election themselves. In former years such petitions had been ignored, but this time the House decided to bring the petition to the cognisance of the Government as a compromise between a Social Democratic proposal that it should be submitted for consideration and a Conservative one that it should be ignored as heretofore, the Centre desiring to show sympathy with the movement without pledging themselves to radical changes. On January 15 the Budget Committee of the Reichstag rejected a Government proposal to grant an Imperial subsidy in aid of the preparations for the Olympic games.

The Reichstag was closed on May 20, the Socialists remaining silent in their seats, instead of leaving the House, as they had hitherto, while the other parties responded to the President's call for three cheers for the Emperor.

In February a private company composed of members of the leading industrial concerns of the Empire was formed at the instigation of the head of the Press Bureau of the German Foreign Office to "further German industrial prestige abroad," i.e. to supply the foreign Press with information favourable to Germany and German industrial enterprise. The sum of 12,500l. a year, the whole Secret Service Fund at the disposal of the Imperial Foreign Office for subsidising foreign papers, was added by the Government to the funds of the company.

In March, the Emperor William visited the Emperor Francis Joseph at Vienna, and afterwards the King of Italy at Venice. The chief feature of these meetings was the special favour shown by the German Emperor to Count Tisza, the Hungarian Prime Minister, with whom he had long conversations on Eastern affairs.

A discussion on Colonial reforms took place on February 18 in the Budget Committee of the Reichstag. The Secretary of State for the Colonies, Dr. Solf, said that after comparing the colonial administrations of the world he had found the British system the best suited to be a model for Germany, and he accordingly intended to strengthen the powers of the Colonial Governors and correspondingly to lighten the burden of the Colonial Office. Replying to a member who complained of the ill-treatment of the natives and the existence of forced labour, the Minister said that the Government was endeavouring to protect the natives, and had instructed the Colonial governors to abolish forced labour. The question was raised again in a full House shortly afterwards, when the Reichstag passed a resolution desiring the abolition of serfdom in German East Africa by January 1, 1920. The Government, on the other hand, issued a White Paper in March, saying that it would be a highly dangerous experiment to fix a date for the abolition. According to the German law every native born after December, 1905, is free, and those who are still serfs can purchase their freedom for a small sum, usually between thirty and forty rupees, which their masters are not allowed to prevent them from earning; more than 2,000 purchase their freedom every year. The number of serfs now in East Africa was estimated to be about 85,000, but it was believed that in fifteen years' time serfdom would be extinct. To abolish it at the date stated in the Reichstag resolution would cost 4,200,000 rupees (about 280,000l.) in compensation to the owners, and leave many serfs without the means of existence. These arguments apparently satisfied the Centre and the National Liberals, but the Social Democrats urged that the Colonies were merely a burden, and that the sooner they could be got rid of the better, as they were useless as homes for white men and contained hardly 25,000 whites altogether. The increase of their trade was only 3½ per cent. of the total of that of German trade, and was less than Germany's trade with Cape Colony and with England's Crown Colonies; most of their needs were supplied from England, and they were not wanted for emigration, for Germany had no surplus population and was always importing foreign workmen. Finally, the Colonies were administered in the interests of unscrupulous companies which were exterminating the natives.

The usual crop of espionage cases came up in the first half of the year. In July a German sergeant was sentenced to fifteen years' penal servitude and expulsion from the Army for corruption and betrayal of military secrets to the Russian military Attaché Colonel Bazaroff, who suddenly left Berlin when the sergeant was arrested. He was clerk in the Engineer Inspection Office, and had sold plans of the fortifications of Königsberg and other places in East Prussia to the Attaché.

Herr von Jagow, the Foreign Secretary, in the usual statement of German foreign policy in the Reichstag, on May 14, referred especially to the violent attacks made upon Germany in the Russian Press, which had naturally led the German Press to retaliate, but for this the German Government was not responsible. He knew of no real Russo-German antagonisms and "had reason to suppose" that the Russian Government was determined to maintain friendly relations. As to England the negotiations "were being conducted on both sides in the most friendly spirit, a spirit which in other matters also prevailed in Anglo-German relations." "An understanding which removed possibilities of friction" was also being arrived at with France.

When Austria-Hungary sent her ultimatum to Serbia the German Emperor was on his usual holiday trip in Norway. He was informed of the text of the ultimatum by the German Ambassador at Vienna, but did not think it necessary to return at once to Berlin, as both he and his Ministers and Ambassadors believed that Russia would not actively interfere and that England in any case would be neutral. He shared the indignation of the Austrians and Hungarians at the murder of their Crown Prince, and fully approved of the text of the ultimatum;[6] it was probably intended as a preliminary to war, but he thought the war would be localised, and if successful would remove from Austria-Hungary the danger of a "Slavonia Irredenta" (A.R., 1912, p. 338), which threatened her existence as a great European Power. It was not believed at St. Petersburg that he really wanted war,[7] and in the opinion of his Ministers at Berlin, the declaration of Austria-Hungary that she had no intention of seizing Serbian territory "would have a calming influence at St. Petersburg."[8] As, however, the situation became more threatening, the Emperor suddenly returned to Berlin on July 26, the day before the Serbian reply to the Austro-Hungarian ultimatum was delivered. On July 27, when Germany declined to accept the British proposal for a Conference on the ground that it would practically amount to a Court of Arbitration, she stated that "if Russia mobilised only in the South, Germany would not mobilise, but if she mobilised in the North, Germany would have to do so too."[9] As Russia would evidently have to mobilise in the North for a war against Austria-Hungary as well as against Germany, this showed that the Emperor William had now decided for war, and his subsequent acceptance of the principle of mediation between Austria and Russia by the four Powers,[10] and his assertion that he was "doing his very best both at Vienna and St. Petersburg to get the two Governments to discuss the situation directly with each other and in a friendly way"[11] were merely concessions to the British Government in the hope that it would be neutral. His bid for British neutrality (p. [177]) was made two days after, and when it was refused Germany prepared at once to mobilise both against Russia and France, although negotiations were still going on between the Powers for a pacific issue, and Austria-Hungary had agreed to discuss with them even the basis of the conflict with Serbia.[12] On July 31 the German Chancellor informed the British Ambassador at Berlin that as the whole Russian Army and Fleet were being mobilised, Kriegsgefahr (danger of war) would be proclaimed by Germany at once, and mobilisation follow almost immediately.[13] When on the same day Russia issued orders for a general mobilisation, Germany addressed an ultimatum to the Russian Government demanding that the Russian forces should be demobilised, and that a reply should be given within twelve hours. This, of course, meant war, which was declared against Russia on August 1, and a last effort to secure British neutrality was made by Germany on the same day. The German Ambassador in London asked Sir E. Grey whether, if Germany gave a promise not to violate Belgian neutrality, England would engage to remain neutral, and he even suggested that the integrity of France and her Colonies might be guaranteed, to which Sir E. Grey replied that he "felt obliged to refuse definitely any promise on similar terms."[14] Germany then declared war against France (Aug. 3). The day before her armies, which had for some time been ready on the frontier, had marched into Luxemburg, the Chancellor declaring that this was not a hostile act, but was merely intended to insure against a possible attack of the French Army, and promising full compensation for any damage done.[15] Luxemburg protested against this violation of her neutrality, but, of course, without effect. On August 2 Germany invited Belgium to allow German troops to pass through her territory, in which case Germany would guarantee the possessions and independence of Belgium on the conclusion of peace, and pay an indemnity for any damage done by German troops. Belgium rejected this proposal on August 3. And while Germany, on August 4, "repeated most positively the formal assurance that even in the case of armed conflict with Belgium, Germany will, under no pretence whatever, annex Belgian territory," German troops entered Belgium and summoned Liège to surrender.[16] The German excuse for this violation of Belgian neutrality was that Germany had to advance into France "by the quickest and easiest way," and that "it was a matter of life and death for them, as if they had gone by the more southern route they could not have hoped, in view of the paucity of roads and the strength of the fortresses, to have got, through without formidable opposition, entailing great loss of time, which would have meant time gained by the Russians for bringing up their troops to the German frontier; rapidity of action was the great German asset, while that of Russia was an inexhaustible supply of troops." The British Ambassador having, in accordance with instructions from his Government, then demanded his passports, the German Secretary of State expressed "his poignant regret at the crumbling of his entire policy and that of the Chancellor, which had been to make friends with Great Britain and then, through Great Britain, to get closer to France." The Chancellor, on receiving the British Ambassador's farewell visit, complained that Great Britain was going to war "just for a word, neutrality, which in war time had so often been disregarded, just for a scrap of paper, on a kindred nation which desired nothing better than to be friends with her." All his efforts, he added, had now been rendered useless, and "the policy to which he had devoted himself since his accession to office had tumbled down like a house of cards." What Great Britain had done was "like striking a man from behind while he was fighting against two assailants," and he held her responsible for all the terrible events that might happen. When the news was circulated that England had declared war against Germany, the Berlin mob broke the windows of the British Embassy. On the following morning, August 5, the following message was delivered to the British Ambassador by one of the Emperor's aides-de-camp:—

The Emperor has charged me to express to your Excellency his regret for the occurrences of last night, but to tell you at the same time that you will gather from those occurrences an idea of the feelings of his people respecting the action of Great Britain in joining with other nations against her old allies of Waterloo. His Majesty also begs that you will tell the King that he has been proud of the titles of British Field-Marshal and British Admiral, but that in consequence of what has occurred he must now at once divest himself of those titles.

A second attempt was made by Germany on August 10, after the capture of Liège, to obtain the consent of Belgium to the German armies passing through Belgian territory on the understanding that "Germany would evacuate Belgium as soon as the state of war will allow her to do so," but this proposal was also rejected by the Belgian Government (Belgian Grey Book, Nos. 62 to 65).

A German "White Paper" was issued in August under the title "How the Franco-German Conflict could have been Avoided," which contained the telegrams exchanged between Prince Henry of Prussia, the King of England, and the German Emperor before the outbreak of the war. It was issued from the Government printing office in Berlin in English, not in German. Prince Henry's telegram to the King, dated Berlin, July 30, stated that the Emperor his brother "is much preoccupied" and "is trying his utmost" to fulfil the Tsar's appeal to him to "work for the maintenance of peace," adding that Germany has "taken no measures, but may be forced to do so any moment should our neighbours [France and Russia] continue," and urging the King to use his influence on France and Russia "to keep neutral." The Emperor, he concluded, "is most sincere in his endeavours to maintain peace," but "the military preparations of his two neighbours may at last force him to follow their example for the safety of his own country, which would otherwise remain defenceless." A telegram from the German Emperor to the King, dated July 31, stated that the proposals of the British Government (that Russia and France should suspend further military preparations if Austria will consent to be satisfied with the occupation of Belgrade and the neighbouring Serbian territory as a hostage for the satisfactory settlement of her demands, other countries meanwhile suspending their military operations) "coincide" with his ideas and the statements he had got that night from Vienna and forwarded to London, but that the German Chancellor had just informed him that an official notification had arrived that the Tsar had "ordered the mobilisation of his whole Army and Fleet, not even awaiting the results of the mediation he" (the German Emperor) "was working at," and leaving him without any news. He had accordingly left for Berlin to take measures for insuring the safety of his Eastern frontiers, "where strong Russian forces were already posted." Finally, on August 1, the German Emperor telegraphed to the King, with reference to a suggestion by the German Ambassador in London that Germany might refrain from attacking France in a war between Germany and Russia if France remained neutral, that "on technical grounds" this suggestion could not be accepted, as the German mobilisation, which had been proclaimed that afternoon, "must proceed against two fronts, East and West, as prepared, and cannot be countermanded," but that if France should offer her neutrality, "which must be guaranteed by the British Fleet and Army," he would "refrain from attacking France and employ his troops elsewhere." He added that the troops on his frontier were "in the act of being stopped by telegraph and telephone from crossing into France." It was afterwards explained that the suggestion had created a misunderstanding, as it would probably have been incompatible with the terms of the Franco-Russian alliance.

In another German White Paper, entitled "Memorandum and Documents with Regard to the Outbreak of War," the "Memorandum" stated that the Balkan League against Turkey had been organised under the patronage of Russia, and that when the League was successful in the Turkish Campaign and had been broken up in consequence of the dissensions of its members, Russia desired a new Balkan League "whose activities should be directed this time not against Turkey ... but against the existence of the Austro-Hungarian monarchy." Serbia was under this plan to "cede to Bulgaria the section of Macedonia that she had won in the last Balkan War and compensate herself by the acquisition of Bosnia and Herzegovina." Austria-Hungary, in view of this scheme, considered that "it was not consistent with the dignity or self-preservation of the monarchy to look on longer at the operations on the other side of the border without taking action," and asked Germany's opinion in the matter. Germany assured her ally "most heartily" of her agreement with the Austro-Hungarian view, while fully aware "that warlike moves on the part of Austria-Hungary against Serbia would bring Russia into the question" and might draw Germany into war "in accordance with her duties as an ally." Recognising, however, that "the vital interests of Austria-Hungary were at stake, Germany could neither advise her ally" to a compliance that would have been inconsistent with her dignity "nor deny her Germany's support," especially as "her interests were also seriously threatened," for "if Serbia with the assistance of Russia and France, had been allowed to imperil the existence of Austria-Hungary any longer, this would lead to the gradual downfall of the monarchy and her submission to Slavonic sway under the Russian sceptre, thus making the position of the Germanic race in Central Europe untenable. A morally weakened Austria-Hungary, breaking down under the advance of Russian Panslavism, would no longer be an ally on whom Germany could count such as she needs in view of the attitude of her Eastern and Western neighbours.... Austria was therefore given a free hand in her action against Serbia, in the preparation of which Germany took no part." This was "Austria's affair; she alone would have to settle it with Serbia, and Germany therefore devoted her entire efforts to localising the war," holding that "no civilised nation had the right in this struggle against barbarism and criminal political morality to prevent Austria from inflicting a just punishment on Serbia." Although the Austrian Government had declared through its Ambassador at St. Petersburg that it had no plans of conquest, the first reports of Russian mobilisation had reached Berlin on the same day, and in the evening the German Ambassadors in London, Paris, and St. Petersburg were directed to call the attention of the English, French, and Russian Governments energetically to the danger of this measure, "for the decision as to the peace of the world lay entirely in St. Petersburg." The Ambassador at St. Petersburg especially was directed to inform the Russian Government that if it mobilised Germany would also have to mobilise, "both against Russia and France." On the following day (July 27) the "Russian Minister of War, M. Sukhomlinoff, gave the German Military Attaché his word of honour that no mobilisation order had yet been issued; for the present only preparatory measures had been taken, but if Austria crossed the Serbian boundary the military districts facing Austria would be mobilised."

Meanwhile Germany "continued her mediatory efforts to the utmost and advised Vienna to make any possible compromise consistent with the dignity of the monarchy," but "unluckily all these mediatory acts were soon overtaken by the military preparations of Russia and France. On July 29 the Russian Government officially announced in Berlin that it had mobilised four Army districts, and reports arrived of rapidly progressing military preparations by France on land and sea." Yet on the same day the Chief of the Russian Staff had informed the German Military Attaché at St. Petersburg "that everything had remained the same as had been explained by the Minister of War two days before, and gave his word of honour in the most formal manner that mobilisation had begun nowhere up to three o'clock that afternoon; though he could not answer for the future." At the same time he declared most emphatically that no mobilisation was desired by His Majesty in the districts touching on the German boundary. As numerous and positive reports of the levying of reservists in these districts had reached St. Petersburg, Warsaw and Vilna, the Attaché expressed the opinion to his Government that the statement of the Chief of the Russian General Staff "was an attempt to mislead Germany with regard to the extent of the measures that had already been taken." The assembling, the Memorandum proceeds, "of troops on the East Prussian border and the declaration of a state of war in all important places on the Russian Western boundary no longer left any doubt that Russian mobilisation was actively going on against Germany," notwithstanding the denials "on his word of honour" of the Russian Minister of War. The Memorandum further publishes the text of telegrams exchanged between the Emperor William and the Tsar. On July 28 the former expressed "the greatest disquietude" at the impression which he heard Austro-Hungary's action against Serbia was making in the Russian Empire. "The unscrupulous agitation," he said, "which has gone on for years in Serbia has led to the revolting crime of which the Archduke Ferdinand was the victim. The spirit which allowed the Serbians to murder their own King and his wife still rules in that land. Undoubtedly you will agree with me that you and I, as well as all Sovereigns, have a common interest in insisting that all those morally responsible for this terrible murder shall suffer deserved punishment." He knew how difficult it was for the Tsar and his Government to resist the pressure of public opinion, and remembering "the heartfelt friendship which had bound him and the Tsar closely for a long time," he was exerting "all his influence to endeavour to make Austria-Hungary come to an open and satisfactory understanding with Russia." He "earnestly hoped, therefore, that the Tsar would help him in his efforts to set aside all obstacles that may yet arise." To this the Tsar replied on July 29 with an urgent appeal that "in this serious moment" the Emperor would help him. A disgraceful war, he said, had been declared on a weak nation; the indignation at this, which he fully shared, was immense in Russia, and he foresaw that soon he would not be able longer to withstand the pressure that was being brought to bear upon him, and that he would be "forced to adopt measures which will lead to war." In order to prevent such a calamity he asked the Emperor, in the name of their old friendship, to do all that is possible to prevent his ally from going too far. The Emperor replied that he shared the Tsar's wish for the maintenance of peace, but that he cannot consider Austria-Hungary's action "a disgraceful war." Austria-Hungary knows by experience that Serbia's promises, when they are only on paper, are quite unreliable, and full guarantees must be secured that Serbia's promises shall be turned into deeds. Russia might, he thought, remain in the rôle of a spectator towards the Austro-Serbian War without dragging Europe "into the most terrible war that it has ever seen." He therefore suggested a direct understanding between St. Petersburg and Vienna as "possible and desirable"—an understanding which his Government was endeavouring to help with all its power. He added, however, that military measures by Russia would hasten a calamity which they both wished to avoid, and would undermine his position as mediator. On July 30 the Emperor repeated that if Russia mobilised against Austria-Hungary, his position as mediator, which he had accepted at the Tsar's urgent request, would be jeopardised, if not rendered untenable. The whole weight of the decision now rested on the Tsar's shoulders; they must bear the responsibility for war or peace. To this the Tsar replied that the military measures now being taken "were decided upon five days ago for defensive purposes against Austria's preparations," and that he hoped "with all his heart" that these measures would not influence in any way his (the German Emperor's) position as mediator. On July 31 the Tsar again expressed his thanks to the Emperor for his mediation, "which permits a gleam of hope that everything can yet be settled peaceably," but added that "it is a technical impossibility" for Russia to halt her military preparations "which became necessary through Austria's mobilisation," though "we are far from being desirous of war." So long as the negotiations continue with Austria regarding Serbia "my troops will not undertake any challenging action, I solemnly pledge my word as to that. I am trusting in the grace of God with all my might, and hope for the success of your mediation at Vienna, for the welfare of our countries and for the peace of Europe—Your sincerely devoted Nicholas." The Emperor replied that upon the Tsar's appeal to his friendship and plea for his help he had undertaken a mediatory action between the Russian and Austro-Hungarian Governments, but that while this negotiation was under way the Tsar's troops were mobilised against Austria-Hungary, and that his mediation was thereby rendered almost illusory. Notwithstanding this, he had continued it; but now he was in receipt of reliable reports of serious preparations for war on his Eastern boundary also, and responsibility for the safety of his Empire compelled him to take defensive measures. He had carried his efforts for the maintenance of the world's peace to the utmost limit, and it was not he that bore the responsibility for the calamity that now threatened the entire civilised world. Yet at this moment it lay in the Tsar's power to stave it off. No one threatened the honour and might of Russia, which might have awaited the result of his mediation. "The friendship," the Emperor concluded, "for you and your Empire which was bequeathed to me by my grandfather on his death-bed, has always been sacred to me, and I have been faithful to Russia when she was hard pressed, especially in her last war. It is still possible for you to maintain the peace of Europe if Russia will decide to put a stop to the military measures that threaten Germany and Austria-Hungary."

The mobilisation of the entire fighting force of Russia, the Memorandum adds, which had been ordered in the forenoon of the day when these telegrams were despatched, was in full swing—"the Tsar's telegram was sent at two o'clock in the afternoon"; and this "shows clearly that Russia desired the war," and "in the afternoon of August 1 Russian troops crossed our border and advanced on German territory. By this move Russia began the war." To the question put to the French Cabinet as to what steps it would take "the reply given on the afternoon of August 1 was that France would do what her interests seemed to warrant. A few hours later, at five in the afternoon, the complete mobilisation of the French Army and Navy was ordered, and on the morning of the following day France opened hostilities." A long reply to the French Yellow Book published by the North German Gazette on December 21 further states, with regard to the argument that Austria and Russia were on the point of coming to an understanding respecting the Note to Serbia, when Germany suddenly destroyed all chances of peace by declaring war, that the general mobilisation ordered by Russia brought to naught the entire mediatory work of Germany, so that nothing can get rid of the fact "that Russia bears the responsibility for unchaining a European war."

Germany was badly served by her diplomatists and Ministers, and also by her generals, though she had perhaps the most efficient, and certainly the best organised, army in the world. She believed up to the last moment that neither Russia nor England would fight, being completely ignorant of the relative strength of the cross-currents of influence at the Russian Court and of the determination of all parties in England to resist the violation of the neutrality of Belgium—a step which only turned against her all the civilised nations of Europe, and probably did not bring her much nearer or more quickly to Paris than if she had invaded France from the South, which was the reason given for Germany's action (no doubt based on the opinion of the German General Staff) by the German Secretary of State (p. [314]). Another reason, or rather pretext alleged by the German Government was that it was necessary to anticipate a hostile attack of France through Belgium, and that it had received reliable information to the effect that French forces "intended" to march on the line of the Meuse by Givet and Namur; but as a matter of fact there were no French forces in that direction; the attack was made from the Vosges and the subsequent alleged discovery of documents proving that France and England had for some time been preparing together with the Belgian Staff for an attack upon Germany through Belgium only showed that these preparations were made in view of the defence of that country against a possible violation by Germany of Belgian neutrality; besides which both France and England had, in response to an appeal from Belgium to defend her neutrality, replied that they would do so (p. [365]).

The German armies forced their way through Belgium with the precision and pitilessness of a machine, but the victories of the Marne and the Aisne in September arrested their progress, and from then until the end of the year they practically remained stationary. In Russian Poland and Galicia, too, although there they had a leader, Field-Marshal Hindenburg, who gained some brilliant victories, they did not succeed in freeing Prussia from the danger of a Russian invasion.[17]

The Germans and Austrians had at the end of the year occupied, besides nearly all Belgium, one twenty-seventh of French territory and one-third of the Kingdom of Poland, while the French and the Russians held respectively about 200 square miles in Alsace, nearly half of Galicia, and some frontier districts of East Prussia; but neither of the great Austrian fortresses, Cracow and Przemysl. Of the important towns in Poland Russia had Lemberg, the capital of Galicia, while Germany held the equally large, though politically not so important, town of Lodz, "the Polish Manchester." The troops engaged on both sides amounted to about 2,000,000 with upwards of 20,000 guns; the Russian artillery, mostly manufactured in the Creuzot works in France, were only surpassed by the German when the latter brought into action their 42 centimetre and 30½ centimetre mortars, the former manufactured at the Krupp works and the latter at Pilsen, in Austria. The last four months of the year were spent in a series of gigantic but inconclusive struggles, accompanied by hideous carnage of hundreds of thousands of men and in which often each side claimed the victory, but whose only appreciable result was the stemming by Marshal Hindenburg of the advance on Silesia by the Russians and by Generals Joffre and French of the advance on Paris by the Germans. In Poland the Germans had the advantage of internal lines and numerous railways by which they could rapidly bring up abundant supplies of men and material, while the Russians were hampered by a lack of railways, by bad roads, and long distances to their base; in France, on the other hand, the Germans had to go long distances for their reserves, and their difficulties were greatly increased by their occupation of Belgium, the cardinal blunder of the war. The losses of the Germans financially were enormous. Professor Julius Wolf, Professor of Political Economy at Berlin, estimated the damage done in East Prussia and in Alsace at about 50,000,000l., and computed that Germany must reckon upon a total waste in three months of 350,000,000l.

The German Navy[18] did not venture to leave its secure harbours in the Baltic except in the battle off Heligoland in August, the two cruiser raids on the East coast of England in November and December, and some attacks on the Russian port of Libau, where the cruisers Magdeburg and Friedrich Karl were destroyed. When the war broke out the battle cruiser Goeben and the light cruiser Breslau were in the Mediterranean, and after bombarding Bona and Philippeville made their way to Messina, whence they escaped to the Bosphorus and were renamed as Turkish ships (p. [183]). The armed merchant cruiser Kaiser Wilhelm der Grosse, which endeavoured to arrest traffic between England and the Cape, and the Cap Trafalgar were sunk before they could do much damage (Aug. 27 and Sept. 14), but the light cruiser Emden, which escaped from Kiaochau, and the Karlsruhe captured about thirty-three British merchant ships, and the armoured cruisers Gneisenau and Scharnhorst, which had also escaped from Kiaochau, after being engaged by the British unsuccessfully off Coronel, on the Chilian coast, were caught on December 8 off the Falkland Islands and sunk (pp. 226, 247). By the end of the year the Atlantic, the Pacific, and the Indian Ocean were nearly free of German cruisers. The submarines of the Germans were equally active and enterprising, but beyond sinking the Cressy, Aboukir, and Hogue in the North Sea in September and the cruiser Hermes in the Straits of Dover in November (pp. 212, 225) they were not very effective in their attacks either upon the Navy or on merchant ships; more were lost by striking the German mines which were laid at the mouth of the Thames and off Ireland. The German airships, too, did not prove very effective.

In the Pacific Ocean Germany lost all her Colonies. On August 18 Japan demanded of Germany the delivery of the entire leased territory of Kiaochau with a view to its restoration to China, and no reply having been given, besieged its fortified port, Tsing-Tao, from October 31 to November 7, when its garrison surrendered. This was by far the most valuable of the German colonies. The Marianne, Caroline, and Marshall Islands were also taken from Germany by the Japanese. German New Guinea and New Britain were captured by an expedition from Australia, and Samoa by one from New Zealand. In Africa Togoland was occupied by the British and French on August 7. In September some raids were made by the Germans on British East Africa, Nyasaland, and British South Africa which were repelled after heavy fighting. On September 19 Lüderitzbucht, in German South-West Africa, was occupied by the Union Defence Force.

On September 27 the British and French invaded the German Colony of Cameroon, whose capital, Duala, surrendered to them, but an attack by British and Indian troops from Bombay on Tanga, in German East Africa, on November 4, was repelled, and the troops then embarked, as it was considered inadvisable to attempt a second attack without adequate reinforcements. In November the Germans made a raid on the Portuguese Colony of Angola, which was repeated in December, although the German Consul had presented a formal apology to the Portuguese Government for the first raid. Finally, on December 30 an Australian force occupied Bougainville, the largest of the Solomon Islands, and hoisted the British flag, and on the following day the British Colony of Walfish Bay, which had been raided by the Germans, was reoccupied by the British.

The horrible atrocities committed by the Germans in Belgium and Poland—the massacres, rapes, and acts of mutilation of unarmed and inoffensive members of the civil population, the placing in front of the troops of male and female civilians to shield them from the fire of the Allies, the taking of hostages to be made responsible for the conduct of the population, the burning of villages and churches and the execution of parish priests, the killing of wounded soldiers and the disregard of the Red Cross—which far exceeded the devastation wrought by the Cossacks in East Prussia and by the Austrians in Serbia—aroused the reprobation of the whole civilised world, and Germany, by way of making some compensation to the Poles, and in contrast to the policy of Russia in forcing her language and religion upon the Ruthenians of Galicia, sanctioned the appointment of a Pole, Dr. Likowski, as Archbishop of Posen, dissolved the anti-Polish Ostmarkenverein (Eastern Colonisation Society) in that province, and in the districts of Russian Poland which were occupied by the German troops, announced that Polish and German would be recognised as the official languages instead of Russian. The German Humanity League issued on September 20 from Rotterdam an appeal "to the civilised world" concluding as follows:—

No matter how long the campaign and the sacrifices it may entail, we know that the true and lasting interests of the toilers and wage-earners in Germany can only be served by the victory of the Allied Armies. The Kaiser, having ruined innocent and deceived Belgium, is now despoiling and drenching France with the blood of his victims. It must, therefore, be plain to all honest men, without distinction of race, or creed, or party, that there can be no settlement of the existing disruptions, no lasting peace or security for the rights of man, no protection of democracy from brigandage and death until the Imperial domination of Prussia within Germany is crushed, disarmed, and swept away for ever. Then, and then only, will Bavaria, Würtemberg, Saxony, and Hanover be rescued, and Poland liberated from the grip of a monarch who, by his conduct, has forfeited the allegiance of his subjects; and, by his boasted defiance of all international treaties and conventions, has embarked upon a career of crime unparalleled in ancient or modern history.

On August 19 the Emperor issued an Army order to his troops urging them to use all their skill and valour "to exterminate first the treacherous English and walk over General French's contemptible little army," and on December 3, in reply to a deputation from the Army in Poland, he said: "We shall continue to fight successfully as hitherto, for Heaven is on our side. With God's help we shall win a long peace, for our nerves are stronger than those of the enemy."

In both the Prussian and German Parliaments all parties united in declaring that the war should be pursued to a successful end. In the German Parliament on December 2 the Imperial Chancellor, dressed in the grey service uniform of a general, declared that the German nation was fighting "a defensive war for right and freedom," and that "though the apparent responsibility for the war fell on Russia, the real responsibility fell on the British Government," as the latter "would have made the war impossible if it had without ambiguity declared at Petrograd that Great Britain would not allow a Continental war to develop from the Austro-Serbian conflict; such a declaration would have obliged France to take energetic measures to restrain Russia from undertaking warlike operations," and the German "action as mediators between Petrograd and Vienna would have been successful." "But Great Britain did not act thus. Great Britain was aware of the bellicose machinations of the partly irresponsible but powerful group around the Tsar. She saw how the ball was rolling, but placed no obstacle in its path. In spite of all its assurances of peace, London informed Petrograd that Great Britain was on the side of France, and consequently on the side of Russia. The Cabinet of London allowed this monstrous world-wide war to come about, hoping, with the help of the Entente, to destroy the vitality of England's greatest European competitor on the markets of the world. Therefore, England and Russia have before God and men the responsibility for the catastrophe which has fallen upon Europe. Belgian neutrality, which England pretended to defend, was nothing but a disguise. On the evening of August 2 we informed Brussels that we were obliged in the interests of self-defence and in consequence of the war plans of France, which were known to us, to march through Belgium, but already on the afternoon of the same day, August 2, before anything of our démarche in Brussels could have been known in London, the British Government promised France unconditional assistance in case the German fleet should attack the French coast. Nothing was said about Belgian neutrality. How can England maintain that she drew the sword because we violated Belgian neutrality? How could the British statesman, whose past is well known, speak at all of Belgian neutrality? When on August 4 I spoke of the wrong which we were committing with our march into Belgium, it was not yet established whether the Belgian Government at the last hour would not desire to spare the country and retire under protest to Antwerp."

In September, in reply to an informal inquiry made of the Imperial Chancellor by the American Ambassador at Berlin as to whether the German Emperor would be willing to discuss terms of peace, the Chancellor replied that as the Allies had formed a compact under which none of them would cease hostilities except by common agreement, the inquiry should be addressed to them, but that there were three pre-requisites to Germany's consideration of peace negotiations: first, that England should forego her demands for a war to a finish and the complete crushing of Germany; second, that while negotiations might be considered with regard to the German Colonies the German Empire in Europe must remain intact; and third, that Germany should be secured against interference by the other Powers around her in future. These conditions were considerably enlarged in a statement made at New York by Herr Dernburg, the Emperor's financial agent in America, in December. He said that Germany "would not consider it wise" to take any European territory, but would make "minor corrections of frontiers" by occupying such frontier territory as has proved a weak spot in the German armour. Belgium, which belonged geographically to the German Empire, would be incorporated in the German Customs Union like Luxemburg; but her neutrality, "having been proved an impossibility," would be abolished, and her harbours secured for all time against British or French invasion. Great Britain having "bottled up" the North Sea, a mare liberum must be established, and the Channel coasts of England, Holland, Belgium and France must be neutralised even in time of war, and the doctrine that private property should enjoy the same freedom of seizure on the high seas as it does on land must be guaranteed by all nations. All cables must be neutralised, and all Germany's Colonies returned, and in view of Germany's growing population she must take Morocco "if it is really fit for the purpose." There must be a recognised sphere of German influence for commercial and industrial purposes from the Persian Gulf to the Dardanelles, and no further development of Japanese influence in Manchuria. Finally, all small nations, such as Finland, Poland, and the Boers of South Africa, must have the right to frame their own destinies, while Egypt is to be returned, if she desires it, to Turkey.

On December 10 the British Government proposed to Germany through the American Government that arrangements should be made for the exchange of British and German officers and men, prisoners of war, who were physically incapacitated for further military service, and this offer was accepted by the German Government on December 31.

The Government was authorised by the German Parliament at the beginning of the war to borrow 200,000,000l., and a War Loan was accordingly started in. September bearing interest at 5 per cent., the issue price being 97½. Extraordinary efforts were made to insure the success of the loan, and the Government sought to raise a minimum sum of 50,000,000l. by offering Treasury bills to that amount. The total subscribed amounted to 223,000,000l., but only 188,000,000l. of this sum was paid up at the end of November. The enormous increase of the expenditure in armaments was shown by the announcement of the firm of Krupp that its share capital would be increased from 9,000,000l. to 12,000,000l. and that of the new amount 1,750,000l. would be paid up at the end of the year. All the deposits of Russia, France, Belgium, and England in the German financial institutions were declared at the beginning of the year to be confiscated, and any repayment of such deposits was to be punished as an act of high treason.

In December General von Moltke, who had not displayed any of the military qualities which had made his uncle famous, was dismissed from the post of Chief of the General Staff, and succeeded by Lieutenant-General von Falkenhayn, Minister of War. His dismissal was ascribed to a difference of opinion between the Kaiser and himself. General Moltke desired a plan of campaign which would concentrate the German efforts on breaking through the Allies' line at Verdun and forcing the British Army to retire in a northerly direction. The Kaiser, however, preferred the plan of breaking through to Calais, and his favourite, General von Falkenhayn, worked out the plan, with the well-known results at Dixmude and Ypres and on the Yser (pp. 222, 369).

II. AUSTRIA-HUNGARY.

The result of the second Balkan War was so far favourable to Austria-Hungary that it broke up the Balkan League, but it left as the predominant State in the peninsula Serbia, which aspired to be the Piedmont of the Southern Slavs, and had long pursued a pan-Serbian agitation in Bosnia, Herzegovina, Croatia and Dalmatia, which had become very formidable with the prestige gained by the Serbian victories. The danger to the very existence of the Empire, seeing that Serbia was secretly encouraged and supported by Russia, was patent, and there was a general feeling in Austria-Hungary that the only way to avert it was to compel Serbia by force of arms, if necessary, to cease her agitation in the Austrian provinces on her border. The Austrian and German Emperors had combined in the previous year to prevent what might have become a European war (A.R., 1913, p. 34), but the assassination of the Austrian heir to the throne by a Serbian, with arms furnished by a Serbian officer, precipitated a crisis which was bound to come sooner or later. One of the outcomes of the pan-Serbian agitation was the attempt on May 20 on the life of Baron Sterletz, Ban of Croatia, by two Serbian students, who were sentenced on October 8 to five and eight years' penal servitude respectively.

The trial of the persons accused of promoting an agitation among the Ruthenians of Eastern Galicia and Hungary with the object of their conversion to the Russian Church as a first step towards the annexation of their country by Russia, which had been begun in the previous year (A.R., 1913, p. 329), was concluded on March 3, and thirty-two of the accused were sentenced to various periods of imprisonment, combined with fines, varying from six months to four and a half years. A similar trial began at Lemberg on March 9. The accused, who were all Ruthenians, were a journalist, two "Orthodox" priests, and a law student, and they were also charged with espionage in favour of Russia. The jury before whom they were tried was composed entirely of Poles, who acquitted them because, it was said, they wished to avoid interference with the internal affairs of the Ruthenians.

The racial struggle in Bohemia (A.R., 1913, p. 328) continued to make the assembling of the Diet impossible, and the Czech members of the Reichsrath retaliated by obstruction in the Reichsrath, which was consequently adjourned sine die early in March. It was not summoned again even after the outbreak of the war.

The Austro-Hungarian Delegations were opened by the heir to the throne, the Archduke Francis Ferdinand, on April 29, after a meeting, described as "very cordial," between Count Berchtold and the Marquis of San Giuliano, accompanied by their diplomatic staffs, at Abbazia. The estimates for the financial year from July 1, 1914, showed that the naval expenditure for the year would amount to 7,386,083l., of which 2,000,000l. was set down as a first instalment of a new naval programme to be completed in five years at a total estimated cost of 17,781,830l. An explanatory note attached to the Estimates stated that the object of this programme was "to make provision against the marked shifting of naval power in the Mediterranean which recent changes in the Near East may be expected to bring about." Four battleships, each of 24,500 tons displacement, were to be substituted for the three old vessels of the Monarch class and the Hapsburg, and were to form the second Dreadnought division of the Austro-Hungarian Navy, besides which three fast cruisers were to be built of 4,800 tons each, to take the place of the three cruisers of the Zenta class built in 1897, and six torpedo gun-boats of 800 tons each and two new gun-boats for service on the Danube. Provision was also made for the extension of the arsenal at Pola and the naval base at Sebenico, about half-way down the Dalmatian coast, which has a good natural harbour, is the headquarters of a rear-admiral with a command extending from Zara to Cattaro, and possesses a torpedo station, though it is not, like Pola, a naval base in which the ordinary necessaries for a modern fleet are to be found, and it was proposed to make it such a base in order to provide for a partial decentralisation of the Fleet, the necessity for which was alleged to have been shown by the recent crisis in the Balkans. Baron Engel, the Assistant Finance Minister, succeeded the late Minister, Count Zaleski, on October 21.

Among the prosecutions for espionage, which were frequent this year in Austria-Hungary, as in other countries, were those of three former officers of the Austrian Army on February 24 and March 6 and 10, who were sentenced to three, nineteen, and seventeen and a half years' penal servitude respectively for espionage in favour of Russia.

An important statement as to the foreign policy of Austria-Hungary was made by Count Berchtold to the Delegations after the President of the Austrian Delegation had expressed the hope that "while preserving the non-aggressive policy of the monarchy, steps might be taken to put a decisive check upon the anti-Austrian propaganda carried on in the frontier districts." Count Berchtold, speaking of the mutual relations of the Triple Alliance and the Triple Entente, noted "a certain slackening of the tension" between them, which he attributed to the policy of Great Britain. "In the attitude adopted by England at the decisive moments of the Balkan crisis," he said, "and more recently, we can perceive efforts to prevent in the future dangers to European peace similar to those threatened in the events of the most recent past. Such a policy is capable of removing misunderstandings which may arise between the two groups of Powers, and thereby to compensate in some measure for the defects which attach to the practical translation into activity of a rigid system of equilibrium"—a hint that such a system is only too likely to produce a European war. The Count also spoke in friendly terms of the relations between the Dual Monarchy and Russia, which he hoped would develop still further in the direction of mutual confidence. Turning to the Balkan States, he referred especially to the desire for closer commercial relations between the monarchy and Bulgaria, the negotiations as to the section of the Orient railways in the new Serbian territories (A. R., 1913, p. 359), the visit to Vienna of the Greek Premier, M. Venizelos, "which showed that the friendly feeling of Austria-Hungary towards Greece was reciprocated at Athens," and to the political and economic interests of the monarchy in the Ottoman Empire, which "could be best served by the continued development of friendly relations with the Porte." As to Roumania, he said that "no serious Roumanian politician could think of risking the loss of the great advantages which the hitherto close and friendly relations with the monarchy had brought to the country."

Francis Kossuth, the head of the Hungarian Independence party, died on May 25. Brought up as an engineer, he had none of the qualities of a great political leader, and he owed his position mainly to his name; he did not inherit even the oratorical gifts of his celebrated father.

The murder of the heir to the Austrian throne, the Archduke Francis Ferdinand, and his wife, which was the immediate cause of the war, took place at Sarajevo, the capital of Bosnia, on June 28. The Archduke, who was Inspector-General of the Army, was on a tour of inspection, and as his car was driving to the town hall a bomb was thrown at him, but without effect. Half an hour later, as the Archduke was returning from the town hall, another bomb was thrown which did not explode, and the man who threw it, a Serbian student of the high school, then fired three shots with a pistol, two of which hit the Archduke and the third his wife. Both expired shortly after. It was stated that this was not the act of isolated assassins, but of a Serbian conspiracy, as widespread as that which had brought about the murder of King Alexander of Serbia and his Queen (A.R., 1902, pp. 322-3), and an outburst of horror and indignation followed all over the Empire. At Sarajevo the Croats, who, though of the same race as the Serbians, are Roman Catholics while the Serbians are "Orthodox" Greeks, and are consequently separated by deep religious as well as political differences, marched through the streets together with a large contingent of Moslems who are Serbian by race but Mohammedan by religion, and broke the windows of houses belonged to "Orthodox" Serbians; and at Agram, the capital of Croatia, large crowds of Croats marched in procession crying, "Down with the Serbian murderers." The general belief was that the conspiracy had its source in Belgrade, and the chief of the police at Sarajevo was said to have arrived at the same conclusion from the examination of the men who had taken part in the murder. According to the evidence taken at the trial of these men, which took place in October, they were the paid agents of a conspiracy whose leaders were Ministers and other functionaries of the Serbian Government, officers of the Serbian Army, and even, as was suggested by one of the witnesses, possibly the Crown Prince of Serbia himself, whose father was alleged to have been in correspondence with the assassins of King Alexander and Queen Draga, and had loaded them with honours on his accession to the throne. Five of the accused, said to have been furnished with arms and bombs by the Serbian Government for the express purpose of the murder, were condemned to death, one to imprisonment for life, and ten others to various periods of imprisonment, from three to twenty years. A dramatic incident in this connexion was the sudden death of M. Hartwig, the Russian Minister at Belgrade, while on a visit to Baron Giers, the Austro-Hungarian Minister, for the purpose, it was said, of defending himself against the charge which was freely made at the time, of his having been an accomplice in the murder. The funeral of the late Archduke took place on July 8, and on the same day the aged Emperor issued a patriotic message to his people, expressing his profound affliction at a crime which "had taken from him a dear relative and faithful helper and robbed his children, still of tender age and still in need of protection, of all that was dear to them on earth," and declaring that as through sixty-five years he had shared joy and sorrow with his people, remembering even in the hours of deepest gloom his high duties and responsibility for their destinies, he was only strengthened by this fresh painful trial in the resolve to follow to his last breath the way he knew to be right for their welfare.

The new heir-presumptive, the Archduke Charles Francis Joseph, was the late Archduke Francis Ferdinand's nephew, a young man twenty-seven years of age, very popular, especially with the Poles and Ruthenians, among whom he served for some years with his cavalry regiment, but more through his pleasant manners and those of his wife, the Archduchess Zita of Bourbon-Parma, than by any special qualities of character or ability, while his uncle was impetuous and quick-tempered, with very strong opinions, chiefly in an Ultramontane direction; and an enthusiastic champion of the idea of a politico-religious conquest of the Western Balkans by Hapsburg influence, if not by Hapsburg arms, and by the propagation of Roman Catholicism among the Southern Slavs—an idea which was of course abhorrent to the Pan-Serbians, and was probably the cause of the conspiracy to which he fell a victim. The murder of the heir-presumptive of a great European State by the members of a conspiracy in a neighbouring country called for immediate and vigorous action. Accordingly, on July 23, the Austrian Minister at Belgrade presented a peremptory note to the Serbian Government, demanding a reply before 6 o'clock on July 25. The Note began by recalling the statement made by the Serbian Government on March 31, 1909, and drawn up by Great Britain (A.R., 1909, p. 346), to the effect that it would alter its policy with regard to Austria-Hungary, and live in future on good neighbourly terms with her. So far from fulfilling the engagement thus contracted, the Note proceeded, "the history of recent years has shown the existence in Serbia of a subversive movement with the object of detaching a part of Austria-Hungary from the monarchy—a movement which had its birth under the eyes of the Serbian Government, and was carried out by a series of acts of terrorism, outrages, and murders." The Serbian Government had "done nothing to repress this movement"; it had permitted "the criminal machinations of various societies and associations," had "tolerated apologies for the perpetrators of outrages and the participation of Serbian officers and civil officials in the movement," and had "permitted all the manifestations which have incited the Serbian people to hatred of the monarchy and contempt of its institutions." Passing to the murder of the Archduke Francis Ferdinand, the Note stated that the depositions and confessions of perpetrators of the outrage had shown that it was "hatched in Belgrade, that the arms and explosives with which they were provided had been given to them by Serbian officers and civil officials belonging to the society Narodna Oprava, and that their passage into Bosnia was organised and effected by the chiefs of the Serbian frontier service." It was therefore impossible for the Austro-Hungarian Government "to pursue any longer the attitude of expectant forbearance which it had maintained for years in face of the machinations started in Belgrade and thence propagated to the territories of the monarchy"; and in order to put an end to these machinations, "which form a perpetual menace to its tranquillity, it demands from the Serbian Government a declaration, to be published on the front page of the Official Journal for July 26, and communicated to the Serbian Army as an Order of the Day by the King, stating that it condemns the movement whose final aim is to detach from the Austro-Hungarian monarchy territories belonging to it," that it "regrets that Serbian officers and civil functionaries have participated in the movement and thereby compromised the neighbourly relations to which Serbia was solemnly pledged by its declaration of March 31, 1909," and that "henceforward it will proceed with the utmost rigour against persons who may be guilty of such machinations, which it will use all its efforts to anticipate and suppress." The Note also made the following demands of the Serbian Government: 1. The suppression of all publications inciting to hatred and contempt of the Austro-Hungarian monarchy or whose tendency is directed against its territorial integrity. 2. Immediate dissolution of the Narodna Obrana and confiscation of all its means of propaganda, also of all other societies with the same objects. 3. Elimination from public instruction in Serbia of everything serving to foment the propaganda against Austria-Hungary. 4. Removal from the service of all officers and civil functionaries guilty of such propaganda whose names and acts shall be communicated by the Austro-Hungarian Government to that of Serbia. 5. Representatives of the Austro-Hungarian Government to be accepted by Serbia for the purpose of collaborating in the suppression of the above propaganda. 6. Judicial proceedings to be taken against accessories to the plot of June 28 who are on Serbian territory, and delegates of the Austro-Hungarian Government to take part in the investigation relating thereto. 7. The immediate arrest of Major Jankasitch and the Serbian State functionary, Ciganovitch, who were found to be implicated in the plot at the official inquiry at Sarajevo. 8. The prevention by effective measures of the co-operation of the Serbian authorities in the illicit traffic in arms and explosives across the frontier, and the dismissal and severe punishment of the officials of the frontier service who had facilitated the passage of the frontier for the perpetrators of the outrage of June 28. 9. Explanation of the utterances of high Serbian officials, both in Serbia and abroad, who notwithstanding their official position did not hesitate after the crime of June 28 to express themselves in terms of hostility to the Austro-Hungarian Government. 10. Notification to the Austro-Hungarian Government without delay of the execution of the measures comprised under the preceding heads.

The general feeling at Vienna was that notwithstanding the hard and uncompromising tone of the above Note, Serbia would yield as she did in 1909 and 1913. Everything depended, now as then, on Russia, and the Tsar was known to be strongly opposed to a European war. The Serbian reply, however, which was delivered by M. Pashitch, the Premier, to the Austro-Hungarian Minister within the time stipulated, after a busy exchange of telegrams between Belgrade and St. Petersburg, though it accepted "in principle," but with reservations, nearly all the Austrian demands, protested against the claim that Austro-Hungarian officials shall take part in the judicial inquiry into the complicity of persons on Serbian territory in the murder and in the suppression of the propaganda against Austria-Hungary, and suggested that the matter should be settled by arbitration. At Vienna the Serbian reply was regarded as merely a device to gain time for Russian and Serbian mobilisation, and a request on the part of Russia that the period in which the reply was to be given might be extended was similarly interpreted. Diplomatic relations between Austria-Hungary and Serbia were at once broken off, orders were given for a mobilisation of the Austro-Hungarian Army, part of the Landsturm was called up for service, and all ordinary traffic on the railways was stopped. In reply to Sir Edward Grey's proposal for the mediation of the four Powers, the Austro-Hungarian Government, while expressing entire agreement with him as to the desirability of localising the war, stated that "things had proceeded much too far" to allow anything to be done for the suspension of military operations; both Russia and Serbia had been mobilising for some time, and Austria-Hungary could not risk being behindhand, especially if the outcome should be a European war.

On July 28 war was declared against Serbia, and the Emperor Francis Joseph addressed a manifesto to his people, stating that it had been his fervent wish to consecrate the years still remaining to him to the works of peace, and to protect them from the heavy sacrifices and burdens of war. "The intrigues of a màlevolent opponent," however, had compelled him, in the defence of the honour and dignity of the monarchy, of its position as a Power, and of the security of its possessions to grasp the sword after long years of peace. When, "after three decades of fruitful work for peace in Bosnia and Herzegovina," the Emperor extended his sovereign rights to those lands, Serbia, whose rights were in no wise injured, had assumed an attitude of "bitterest hate" to the monarchy, notwithstanding which it had only required her to reduce her Army to a peace footing and to promise that in future "she would tread the path of peace and friendship." Again, when Serbia was embroiled two years ago in a struggle with the Turkish Empire, it was to Austria-Hungary, which had "restricted its action to the defence of the vital interests of the monarchy," that Serbia "primarily owed the attainment of the objects of the war." But "the hope that Serbia would appreciate the patience and love of peace of the Austro-Hungarian Government, and would keep its word," had not been fulfilled. "The flame of its hatred" for the Emperor and his House had "blazed always higher," and the design to tear from it by force inseparable portions of Austria-Hungary "had been made manifest." "A criminal propaganda extended over the frontier with the object of destroying the foundations of State order," of making the people "waver in their loyalty to the ruling House and the Fatherland," and of inciting their youth "to mischievous deeds of madness and high treason." A series of murderous attacks, an organised, carefully prepared, and well carried out conspiracy, "whose process had wounded him and his people to the heart," had marked with its bloody track the secret machinations which were operated and directed in Serbia with this object. In vain did his Government make a last attempt to preserve the honour, dignity and interests of the monarchy from these criminal shocks, "and to induce Serbia, by means of a serious warning, to desist." Serbia had rejected "the just and moderate demands" of his Government; he must, therefore, proceed by force of arms to secure "those indispensable pledges which alone can ensure tranquillity to the monarchy at home and lasting peace abroad." Finally, the Emperor declared that "in this solemn hour he was fully conscious of the whole significance of his resolve and his responsibility before the Almighty"; that he had "examined and weighed everything," and with a serene conscience would "set out on the path to which duty points," trusting in his people "who throughout every storm always rallied in unity and loyalty round the throne, and were always prepared for the severest sacrifices for the honour, the prestige, and the might of the Fatherland," in his "brave and devoted forces," and "in the Almighty to give the victory to his arms."

The ultimatum to Serbia was, as Sir Edward Grey described it, unprecedented in the harshness of its demands of an independent State, and its style was so different from that of Count Berchtold that it was believed at Vienna to have been drafted at the Emperor Francis Joseph's request by Baron Burian, the Hungarian Minister a latere of the Emperor, an expert in South Slavonic affairs and himself of Slovak origin. The German Chancellor and his Secretary of State professed a total ignorance of the text of the ultimatum, but there seems to be no doubt that it was sent to the German Emperor in Norway and met with his complete approval, as it was more in accordance with the policy of "the mailed fist" than the polished and conciliatory despatches of Count Berchtold. The latter repeatedly asked the Emperor Francis Joseph to be relieved of his post, and only remained to carry out a policy distasteful to him out of loyalty to his Imperial master. He strove up to the last for a pacific issue, and he announced in London and Paris on July 31 that he would consent to submit to mediation the points in the Note to Serbia which seemed incompatible with the maintenance of Serbian independence,[19] but the matter had by that time passed into the hands of Germany and the Austro-Hungarian military leaders and could not be pursued diplomatically any further. The policy initiated by the late Count Aehrenthal in 1908, the disastrous consequences of which Count Berchtold had done his best to minimise, was now again predominant at the Hofburg, and threatened to lead Austria-Hungary to her ruin.

War was declared against Russia, France, and England, on August 6, and the Austrian troops marched across the Russian frontier, which had been left unguarded, on August 7. The Austro-Hungarian Army was well organised and equipped, and though composed of men of several different nationalities, showed a unity of action and a rigid discipline not surpassed by that of its German ally. The Polish legion, numbering 20,000 men, many from Russian Poland, and equipped out of a fund raised by private subscription among the Poles of Galicia, greatly distinguished itself by its headlong valour and the high military qualities of its officers. Austria-Hungary was a most efficient ally for Germany, but the task assigned to her of invading Serbia, defending her own territories against the overwhelming forces of Russia, and at the same time assisting the Germans in their defence of East Prussia, was beyond her strength. This was the cause of her failures in Serbia; she crossed the frontier at Shabatz on August 13, after having bombarded Belgrade, but the necessity of massing her troops in Galicia to resist the Russian invasion prevented her from sending sufficient reinforcements to the army of 15,000 men with which she had occupied Shabatz, and she announced on August 23 that as she was "obliged to gather all her forces for the principal struggle in the north-east," her attack upon Serbia was to be regarded "as a punitive expedition and not as a definite war." The campaign which followed (p. [360]) was disastrous to the Austro-Hungarian arms; three attempts were made to invade Serbian territory, and in the third, further troops having been brought up from Hungary, they succeeded in capturing Belgrade, but a fortnight after the Serbians recaptured their capital and drove the Austro-Hungarians in disorder from the country (p. [361]). Montenegro having joined Serbia in declaring war upon Austria her coasts were blockaded on August 12 by the Austro-Hungarian Fleet and the Montenegrin fortress of Lowczen, opposite Cattaro, was bombarded with little effect. The Montenegrins and Serbians repeatedly attempted to invade Bosnia, but did not succeed in reaching Sarajevo, the capital, being on each occasion beaten back by the Austrians.

The capture of Lemberg by the Russians and the Austro-Hungarian disasters in Serbia were a great blow to Austrian prestige, and much discontent was expressed at Vienna because Germany had apparently neglected the interests of her ally in her anxiety to protect Prussian territory against Russia. Repeated negotiations took place on the subject between the two Governments, and Count Tisza, the Hungarian Premier, was sent on a mission to the German headquarters, the result of which was that numerous German troops were sent to assist in a fresh expedition against Serbia.

War was declared against Belgium on August 27, and a treaty of arbitration with Switzerland was concluded on September 2.

FOOTNOTES:

[6] The French Ambassador at Berlin stated on July 24 that great weight must be attached to the Emperor's feeling that monarchies must stand together, and that his impressionable nature must have been affected by the assassination of a Prince whose guest he had been a few days previously (French White Book, No. 30).

[7] British Blue Book, No. 17.

[8] Ibid., Nos. 18, 32.

[9] Ibid., No. 46.

[10] Ibid., No. 46.

[11] Ibid., No. 71.

[12] Ibid., No. 98.

[13] Ibid., Nos. 112, 113.

[14] British Blue Book, No. 123.

[15] Ibid., No. 129.

[16] Nos. 157, 158 Belgian Grey Book, Nos. 20 and 22 Austrian Red Book.

[17] The campaigns in Belgium, France, and Russian Poland are described in the chapters relating to those countries.

[18] The naval operations of the war are dealt with in English History, Chapter V.

[19] Blue Book, No. 161.

CHAPTER III.
RUSSIA, TURKEY, AND THE MINOR STATES OF SOUTH-EASTERN EUROPE.

I. RUSSIA.

Whatever may be the verdict of history as to the Power responsible for plunging Europe into war, it would not have taken place if Russia had not supported Serbia, for Serbia would have accepted the whole of Austria-Hungary's demands if she had not been assured of Russian active intervention in her behalf. Russia, with the magnanimity of a great people, was not prepared to stand idly by and witness the wanton attack of Austria upon a weaker state, which had already offered ample reparation for any offence for which she could be held responsible. The attack made on Serbia by Austria-Hungary was, however, regarded by the party under the Grand Duke Nicholas as an imperative call to action, even though the Army was not quite ready; but the Government made every effort to arrive at a pacific solution, and it was not until the equivocal attitude of Germany made the situation menacing that the Tsar, wavering between his love of peace and internal reform on the one hand, and the just outcry of the Nationalists and the "Orthodox" Church on the other, was at length persuaded to take the side which was sure to be the most popular, at least so long as success should crown the Russian arms. It was not, strictly speaking, a war "between Slav and Teuton," for many of the Slavs outside the Russian Empire declared themselves against Russia, and fought on the side of her enemies. The enemies of "the Teuton" among the Slavs, apart from Serbia and Montenegro, were only the Russians; the Poles, the Czechs, the Croats, and even the Slovaks and Slovenes, were on the side of Austria-Hungary. There were some mutinies of Czech and Croat regiments, which were due to the racial hostility of the Czechs to the Germans and the Croats to the Hungarians (A.R., 1912, p. 337; 1913, p. 328). The "Orthodox" clergy in Russia regarded the war as a sort of crusade against Catholicism; but their agitation met with little success among the Austrian Slavs except in some districts of Galicia and Hungary inhabited by Ruthenians of the United Greek Church (p. [327]), many of whom were shot during the war for having given the Russians information of the movements of the Austro-Hungarian Army. The Ruthenians of the "Orthodox" Church, on the other hand, who inhabit the province of the Ukraine in Russia, had started a separatist movement at Kieff in March in favour of union with Austria.

The most important event of the earlier part of the year was the retirement on February 11 from the post of Premier and Minister of Finance of M. Kokovtsoff, under whose administration Russia had attained to unprecedented welfare and a greater political stability than it had enjoyed for many years. His retirement was believed to have been brought about by the intrigues and disloyalty of his colleagues—a frequent cause of the fall of Ministers and other high functionaries in the Empire, and also by his having insisted, in opposition to the Ministry of Agriculture, M. Krivoshein, on the maintenance of the brandy monopoly as the safest and most productive source of the Imperial revenue. The new Premier was M. Goremykin, a reactionary bureaucrat who held the same post at the time of the first Duma (A.R., 1906, p. 319), and M. Bark, an eminent banker and a personal friend of M. Krivoshein, was appointed Minister of Finance. In a rescript addressed to the new Minister the Tsar directed him to carry out a policy of "radical reforms in the financial administration of the State and the economic life of the country," as "it is inadmissible to permit the favourable financial position of the State to depend on the destruction" (owing to the national vice of drunkenness) "of the moral and economic strength of the great multitude of Russian citizens, and it is therefore urgent that financial policy should be conducted on the principle of obtaining revenue, not from the sale of spirituous liquors, but from the produce of the inexhaustible wealth of the country and of the labour of the people." The Council of the Empire at the same time adopted a series of extremely drastic provisions in favour of temperance contained in a bill passed by the Duma, at the instigation of the peasant deputies, giving powers of local option to all communes, townships, and villages by a simple majority, with the right either of completely prohibiting the sale of liquor or restricting it to specified shops to be opened on certain days or at certain hours; women being allowed to vote on these matters. Count Witte, who with M. Kokovtsoff, had been the founder of the brandy monopoly, now joined the opposition to it, declaring that he had made "a mistake which was leading Russia to her ruin." According to his estimate, the total revenue derived from the monopoly was about 100,000,000l. and had been increasing every year since it was established. The first step towards temperance reform was taken on March 26, when an order was issued to suspend the sale of spirits at all railway stations; it was also announced that the penalties on illicit trading in spirits would be increased, that the people would be taught the advantages of temperance in the churches and schools, and that the plea of extenuating circumstances would not be admitted in the case of crimes committed under the influence of drink. The outbreak of the war in August gave the movement a new impetus; the Government shops for the sale of spirits were nearly all closed, and it was announced by the Tsar in October that they would not be opened again. The result of this measure was not only an enormous increase of the efficiency of the troops, but of the wealth of the peasantry, which instead of being dissipated in drink was employed in agricultural improvements and a great increase of their investments in savings banks. A further result of the interest taken by the Tsar in the moral and physical welfare of his people was the creation of a "Department of Physical Culture," for the promotion of outdoor sports, and during the war the sale of spirits was strictly forbidden in all the Galician towns occupied by the Russians; the keeper of a restaurant at Lemberg was fined 2,000 crowns (83l. 6s. 8d.) for having sold a customer a glass of cognac. The chief difficulty in the adoption of the proposed reforms was that which had hampered the Tsar's intentions since the issue of the October manifesto of 1905 (A.R., 1905, p. 319), namely the want of harmonious co-operation between the Ministry and the Legislature on the one hand, and the members themselves of the Ministry on the other. The new Premier, M. Goremykin, was appointed by the Tsar without a Ministerial portfolio, apparently with the object of placing him above departmental rivalries, and he was directed by an Imperial Rescript on March 20 "to work in harmony with the Legislature." Cooperation with the Duma was attempted by conferences between the Premier and its leading members, the intention being, if it should prove impossible to secure a majority for the proposed reforms, to hold a general election. The first of these conferences held in the Duma did not relate to internal reforms, however, but to a proposal made by the Government to increase the peace effectives of the Army by 460,000 men, bringing up the total to 1,700,000, at an extra cost of 50,000,000l. spread over three years. This was the Russian answer to the increase of the German Army in 1913 (A.R., 1913, p. 307), and to an anti-Russian campaign in the German and Austro-Hungarian Press, and all the Russian party leaders, except the Socialists, sanctioned the proposal. It was further determined, with the consent of the Duma, that the service of time-expired men should be prolonged for three months after the legal limit, which brought up the peace effective at once to almost the number fixed above.

The Russian Foreign Minister, M. Sazonoff, made a remarkable statement on the subject to a representative of the Hungarian Journal Az Est. He said that he could not understand the reason of the excitement in Germany and Austria-Hungary with regard to Russia; tension certainly did exist between the monarchy and Russia in the previous year, but the relations between the two countries were now "excellent." The increase of armaments, he continued, was initiated by Germany, whose initiative had reacted on France, and led to an increase of the peace strength of Austria-Hungary; it was therefore natural that Russia should have taken steps in the same direction. With a birth rate of 2,500,000 she could allow herself "the luxury" of an increase in the peace footing of her Army. A "test mobilisation" of about 500,000 reservists was begun on April 15, and in June the Duma approved of an extraordinary credit of 10,000,000l. for the construction of warships for the Black Sea Fleet, to be spent on one 27,000-ton Dreadnought, two 7,500-ton cruisers, eight torpedo boats and six submarines, all to be built at Nikolaieff and commissioned not later than the spring of 1917. The Minister of Finance at the same time stated that Russia would have to spend 752,000,000l. in the next five years for the Army and Navy.

On April 2 the Imperial assent was given to a bill providing that married women, separated from their husbands, should enjoy full liberty of movement and enjoyment of property, even if minors, and that the courts shall have no power to order restitution of conjugal rights; cruelty to the children, rudeness, violence, dishonesty, immorality, or dangerous or loathsome illness to be sufficient cause for separation, and the husband to provide alimony, the care of the children being awarded to the injured party.

The report of the Budget Committee of the Duma on the Budget for 1914 was issued on April 6. It fixed the expenditure at 358,032,609l., or nearly 33,000,000l. more than in 1913, and the revenue at 361,265,916l., or 36,200,000l. more than in 1913, and proposed that the surplus of 3,233,109l. should be devoted to the building of ways of communication, also that as the temperance campaign was likely to diminish the revenue, fresh taxes should be introduced. The Opposition groups took advantage of the debate on the Budget to protest against the intended prosecution of one of their leaders, M. Tcheidze, for propagating Republican ideas. Hereupon, on the proposal of the President, the Duma voted the suspension for a fortnight of fifteen Socialists, including M. Tcheidze, who were removed by the Serjeant-at-Arms and the guard. Notwithstanding the efforts of M. Gozemykin to establish more friendly relations between the Government and the Duma, there was no alleviation of the discontent manifested by all classes in the previous year (A.R., 1913, p. 336). On May 17, after voting a reduction in the Home Office Estimates as a protest against its policy, the Duma, by 186 votes against 95, censured M. Maklakoff, the Home Minister, for his persistent disregard of the representative institutions of the Empire, thereby "undermining the welfare and safety of the State." In June there was a serious crisis on the Stock Exchange at St. Petersburg, ascribed chiefly to the reactionary and repressive policy of the Home Minister, who discouraged foreign capital by the vexatious restrictions imposed upon joint stock companies with regard to the participation of Jews in their management. He was also held responsible for the enormous increase in so-called political strikes (A.R., 1913, p. 336), the work of a clandestine organisation which threatened to paralyse trade and industry. In the May-day strike 130,000 men took part in St. Petersburg alone, and such widespread drunkenness had never before been observed among the working-men. The strikes continued through the months of June and July; on July 23 there was fighting in different parts of the capital until midnight, the strikers having raised barricades against the police, upon which they were charged by the Cossacks, many being killed and wounded. On the following day 110,000 workmen were still out on strike, and the Novoe Vremya, the most influential of the Russian papers, declared that the existing system of police repression had proved a failure, and "unorganised masses had been thrown defenceless under the yoke of revolutionary agitators," adding that both the Government and public opinion were responsible for the abominable excesses which had disgraced Russia. The strikes ceased, however, on July 26 without further recourse to violence, and they were not renewed in view of the greater issues confronting the Empire.

On July 13 Gregory Rasputin, the peasant "fakir" whose influence with the Empress and the ladies of the Russian Court had given rise to much scandal in the society of the capital, was stabbed in his house near Tobolsk by a woman, a follower of his rivals the monk Heliodorus and Bishop Hermogen, who had sought to obtain his banishment. A report presented by the Holy Synod to the Tsar stated that defections from the "Orthodox" faith were growing more and more numerous, and that the Socialists and others, dreaming of a new revolution, were sapping the foundations of the Church. The seceders were mostly Baptists, Stundists, Old Believers, Flagellators, and Atheists.

The cordiality of the reception on June 24 of the officers of the British First Battle Cruiser Squadron at Tsarskoe Selo was somewhat marred by the unfavourable impression produced at St. Petersburg by the acquisition by the British Government of a preponderant interest in the Anglo-Persian Oil Company (p. [123]), which Russian politicians regarded as tantamount to the establishment of British preponderance in the neutral zone in which the Anglo-Russia Convention of 1907 had stipulated equality of opportunity. In the Duma on May 24 M. Sazonoff, the Foreign Minister, had declared that the foreign policy of Russia "continued to be based on the unshakeable alliance with France and friendship with Great Britain; the establishment of a sound friendship between France and Great Britain, and also between Great Britain and Russia, had brought Great Britain within the sphere of political communion previously existing between Russia and France which had helped to maintain peace." Although there was not a formal alliance between Russia and Great Britain, there was a "political combination imposed by unity of aims," and therefore "friendly co-operation is assured irrespective of the form and the scope of the written word." The Triple Entente was "responsible for the equilibrium of Europe, and ever ready to co-operate with the Triple Alliance in the general interests of peace." Russia "continued to seek the maintenance of the old friendly relations with Germany," but unfortunately the endeavours of the two Governments in this direction "did not always meet with due support from the Press of their countries." As to Austria-Hungary the Minister merely re-echoed the friendly sentiments of Count Berchtold with regard to neighbourly relations, and in the Balkans, he said, Russia's task was pacification. "She would impartially assist all the Balkan States, asking in return only neutral sincerity and confidence." Her relations with Turkey had improved since the Balkan crisis, and she was disposed to assist Turkey in the internal reform of her Asiatic possessions, as "only the peaceful development of Turkey would assure the freedom of the navigation of the Straits"; and the conciliatory spirit of the Turkish Government was shown by its attitude towards Armenian reforms, in which matter "Germany had co-operated with Russia." Finally, M. Sazonoff said that a "comparative lull" had been noticeable of late in Persia, "thanks to the continued friendly co-operation of Russia and Great Britain and the efforts of the Russian legation and the Persian Cossack brigade in quelling disturbances in the Western districts." The majority of the Russian troops at Kazvin had consequently been recalled, but in the northern provinces order was still dependent on the presence of the Russian troops. Russian policy towards Persia, the Minister concluded, remained unchanged and was devoid of aggressive intentions. "Our object is, as hitherto, to contribute to the establishment in this bordering country, so closely joined to us by important economic interests, of that stable order so necessary for the further development of our mutual commercial relations and the progress of Persia herself."

The visit of President Poincaré to Russia (July 20) elicited an enthusiastic welcome on the part of the people, and on July 23 the Tsar, in proposing the toast of the President and France, said that France and Russia had for nearly a quarter of a century been bound by close ties in order the better to pursue the same end, "which consists in safeguarding their interests by collaborating in the equilibrium and the peace of Europe," adding that he was convinced that "the two countries will continue to enjoy the benefit of peace," remarkable words, considering that they were spoken only a few days before Europe was plunged into war.

On July 26 the Tsar left St. Petersburg on a trip to the Finnish Skerries, after having authorised, in consequence of the Austrian ultimatum to Serbia (p. [330]), the issue of orders for a mobilisation of fourteen Army Corps on the Austrian frontier, and of the rest of the Russian Army immediately upon mobilisation in Germany.

Russia and Germany had never since the partition of Poland been in antagonism until now. Austria had given the Poles liberty and self-government, and they were naturally ready and willing to fight for her. But Russia had alienated them by her incessant persecution of their language and national institutions, and by her fruitless attempts to crush their national existence and turn them into Russians, while Germany, acting by more subtle means with a similar object, was feared as well as detested. Both, now that Poland was to be the battlefield, appealed to the Poles for their support, making golden promises to them of which the motives were only too evident, and which a tragic experience had taught them were not to be depended upon. By the side of Germany, as Russia's most formidable enemy, they were ready though reluctant to fight. But of the many thousands in the Russian Army who surrendered to the Austrians many were Poles, and thousands more escaped from Russian Poland to join the Polish legions which were formed under Austrian auspices. The feeling of the other Slavs in Austria-Hungary and elsewhere with regard to Russia was equally hostile. The Czech Glas Naroda, commenting on one of the appeals of the Grand Duke Nicholas to the Poles, saying the war "is a war of liberation for the Slavs," and promising "to unite all the parts of Poland now under the rule of Austria-Hungary and Germany, give them self-government, and restore Poland under his sceptre," asked: "From what are the Slavs to be liberated? From the freedom and self-government which they enjoy under Austria-Hungary? They will hardly be tempted to exchange these benefits for the despotic rule of a corrupt bureaucracy. As for the Czechs, they often oppose the Government, but are always warmly attached to the State with whose existence their own is inseparately bound. Austria-Hungary gives equal rights to all the nationalities in the Empire and enables them freely to develop themselves. Russia does not tolerate any other nationality in her dominions, not even a Slavonic one." Shortly after the bombardment by the Turkish fleet of the Russian towns on the Black Sea a deputation of Ruthenians from the Ukraine came to Constantinople and issued an address to the Ottoman nation, saying that Russia had always been the enemy of Turkey, that the treatment of the Mohammedans in Russia was a crime against humanity, and that thirty millions of people in the Ukraine hoped to be rescued from such sufferings by Turkey, the old ally of the Cossacks of the Ukraine. In Bulgaria, too, the Rabotniczewski, an organ of the Labour party, described Russia's claim to pose as the liberator of the smaller European States as a "shameless piece of cynicism," as 180,000,000 people, Russians, Poles, and Finns, were suffering under her despotic rule. While in France, Belgium, Germany, and Austria-Hungary the Socialists joined with the other parties in supporting the Government, in Russia they declared in a letter to M. Vandervelde, the eminent Belgian Socialist and ex-Minister, who had urged them to join in the war against Germany, that they would continue their struggle against Tsardom with more energy than ever, and take every opportunity of reversing it: "The Russian as well as the German Government is the enemy of democracy; even now that it is at war it persecutes the working-men and the non-Russian nationalities, and should it be victorious it would be the propagator of political reaction in all Europe."

At the beginning of the war the Russian troops were removed from the frontier districts to the great fortresses of Ivangorod and Brzesc Litewski, where they were formed into three Armies, one to advance through East Prussia and Silesia towards Berlin, another to break through the Carpathians into Hungary, and the third and strongest to march upon Galicia. The advance into Prussia was to be a powerful diversion with the object of weakening Germany's invasion of France by forcing her to send troops from there to the East to defend her own territory, while the object of the advance to Hungary was to help the Serbians against the Austrian invasion. To strengthen these Armies the whole of Finland, nearly the whole of Russian Poland and large districts in Central and Northern Russia, as far as Siberia, were left without troops. The Grand Duke Nicholas, the nephew of Alexander II. and husband of the Princess Anastasia of Montenegro, was appointed Commander-in-Chief, and General Sukhomlinoff, Minister of War, Chief of the General Staff. As not only the troops, but the gendarmes and the Customs officials, were removed from the frontier districts, and the Custom houses were closed in anticipation of an Austrian advance before the Russian mobilisation was completed, people could pass into Austria without examination at the frontier, and many Poles took the opportunity of thus escaping enlistment into the Russian Army and joining the Polish legions which were being formed at their own expense by the Poles in Galicia for service with the Austrian Army. On marching with his troops into Russian Poland the Grand Duke Nicholas issued the following address to the Poles: "Poles, the hour has struck when the sacred dreams of your fathers and ancestors can be realised. A century and a half ago the living body of Poland was torn to pieces, but its soul did not die. She lived in the hope that the hour of resurrection would come for the Polish nation and its fraternal reconciliation with Great Russia. The Russian troops bring you the solemn news of that reconciliation. May the Poles of Russia unite under the sceptre of the Russian Tsar, under that sceptre Poland will be born again, free in her religion, her language, and her autonomy. Russia only asks that you should respect the rights of the nationalities to which history has allied you" (i.e. the Ruthenians). "With open heart and hands fraternally held out, Great Russia comes to meet you. The sword which struck down the enemy at Grünwald (an allusion to the battle in which the Polish King, Ladislaus Yagiello, defeated the German crusaders and made them his vassals) has not yet rusted. The Russian Armies march from the shores of the Pacific to the North Sea. The dawn of a new life begins for you. May the sign of the Cross, the symbol of the suffering and the resurrection of the nations, glitter in that dawn." A reply to this address, signed by some Poles in Warsaw, expressed their loyalty to the Tsar and their wish for the success of the Russian arms, but among many of the Poles the Grand Duke's promises were regarded as merely a device for keeping them quiet. The address produced more impression among the Russians than among the Poles; at Moscow and Kieff large sums were subscribed for the relief of the Poles who were suffering from the total devastation of their country caused by the war, and there was a revulsion of feeling in favour of the Polish nation.

While the Russians were massing their armies in the "Trilateral" (Ivangorod, Novo Georgievsk and Brzesc Litewski), Austrian troops crossed the frontier and occupied Kielce and other towns in Russian Poland, and were at first well received by the people, but when subsequently their place was taken by German troops, who imposed contributions, took hostages, and bombarded churches and villages, the feeling for their new rulers naturally changed. There were 1,300,000 Polish soldiers in the Russian, German and Austrian Armies, military service in all three States being obligatory, and their country, seven times as large as Belgium, was even more devastated by the constant marchings to and fro of millions of troops, which destroyed everything that could be of advantage to their enemies; and often, notably the Cossacks, the Honveds and some of the Germans—as in Belgium—burnt villages and plundered country houses.

Directly after the declaration of war, on August 2, a strong Russian column, with guns, crossed the Prussian frontier near Biala, and marched to Johannisburg. The Germans, on the other hand, occupied Bendzin, Kalisch, and Czenstochowa in the Kingdom of Poland. On August 1 the Russians occupied Stallupönen, east of Insterburg, and Lyck, after five days' skirmishing with the Germans at Eydtkuhnen and Wirballen. These, however, were merely reconnaissances in force; the general advance of the Russian Armies did not begin until August 18, when they sent two Armies into East Prussia and invaded Galicia from the north and east, converging upon Lemberg. On crossing the frontier the Grand Duke Nicholas published an appeal to the Ruthenians in Galicia, addressing them as brothers "who had languished for centuries under a foreign yoke" and calling upon them "to raise the banner of united Russia."

The first great battle of the war between the Russians and Germans took place on August 20 between Pilkallen and Stallupönen, on the road to Tilsit; it lasted fourteen hours, and the four German Army corps which took part in it were driven by the Russians towards Gumbinnen with a loss of 3,000 men and thirty guns, and followed to Insterburg, which the Russians captured on August 23 without resistance. Then came a Russian attack on Kielce and Tomaszow, in the Kingdom of Poland, which had been occupied by the Austrians; the Russians were driven back with great loss, and the Austrians then occupied Sandomierz. Meanwhile the Germans brought up three Army corps of 160,000 men near Gumbinnen, and endeavoured to turn the Russian left, but without success, and the Russians then occupied Soldau, which commands the railway to Dantzig, and took possession of nearly one-half of the territory of East Prussia. Their attempts to enter Galicia were less fortunate. They were beaten at Sokal on the road to Lemberg with the loss of a whole brigade and two generals, one of whom was killed and the other taken prisoner. At Pavosielica, on the frontier of Bukovina and Bessarabia, 20,000 of the Russian cavalry were driven back by the Austrians; on August 24 an Austrian Army under General Dankl, engaged the Russians in a three days' battle on a line of fifty miles at Krasnik, on the road to Lublin, and on September 2 another Austrian Army, under General Auffenberg, attacked 280,000 Russians in eight days' fighting on a front of 200 miles at Zamosc and Komarow. A fresh Russian Army, however, under General Russky, coming up from the south-east between the two Austrian Armies, which had lost 20,000 killed and wounded, with 76,000 prisoners and 300 guns in the previous battles, inflicting on the Russians a loss of 19,000 prisoners and 200 guns, forced them to retire, and occupied on September 3 Lemberg (which they renamed by the Polish name Lwow), the capital of Galicia, which remained in the hands of Russia till the end of the year, with a Russian administration, Russian clergy (the Ruthenian Archbishop having been banished to Russia) and obligatory teaching of Russian, instead of Ruthenian, in the schools. Meanwhile the Russians, who had completed the mobilisation of 8,000,000 men, divided into four Armies, to be sent into the field one after the other, marched two of them into East Prussia, and were so confident of victory that they expected to reach Berlin within three weeks. One, under General Rennenkampf, occupied Tilsit and marched on Königsberg; the other, under General Samsonoff, started for Thorn and Posen, but on reaching Tannenberg, near Ortelsburg, it was confronted on August 28 by the Germans under General Hindenburg, who, using a similar manœuvre to that of Hannibal at Cannæ, drew on the Russians with apparently inferior forces into the swampy region of the Mazurian lakes, and then, attacking them on both flanks and in the rear, compelled them to surrender with a loss of 50,000 killed and wounded, including three of their best generals and several staff officers, 90,000 prisoners and 516 guns. The second Army under General Rennenkampf, which had come too late to prevent the disaster, was also routed by General Hindenburg on September 10, and for the time being the Russian offensive in East Prussia was abandoned. The remnants of the Russian Army were again defeated on September 15 at Elk, and were pursued by the Germans into Russian territory as far as Augustowo, near the fortress of Ossowiec, which they invested on September 30.

Although the capture of Lemberg was a great blow to Austrian prestige, the Austrian armies, together with some German corps which had been brought up to their assistance after the Russian defeat at Tannenberg, pursued their attacks upon the Russians at Rawa Russka, after a battle which lasted from September 7 to September 11, with terrible loss on both sides. The Russians had still 2,000,000 men in the field on the Austrian and Prussian frontiers, and their attempt to break through the Germans in the direction of Königsberg and Thorn having failed, they now made the fortresses of Przemysl and Cracow their objective, as if these were taken the road would be clear to Berlin and to Vienna. After seventeen days' fighting they advanced towards Przemysl, and attacked the Austrian Army while it was crossing the river San, capturing the whole of its rearguard, amounting to 30,000 men. The Austrians fought well, but the Russians, as regards fighting efficiency were more than equal to their opponents. Nearly the whole of Eastern Galicia and Czernowitz, the capital of Bukovina, were now in their hands; on September 18 they occupied Sandomierz, on the 22nd Jaroslaw, on the railway between Lemberg and Cracow, and on the 28th they began the siege of Przemysl, while other Russian forces advanced to the passes of Uszok and Dukla, in the Carpathians, for a raid into Hungary, which, however, was beaten back by the Hungarians and the Polish legionaries on September 30. When the Russians arrived at Medyka, near Przemysl, they were also attacked by the Austrians, who inflicted on them a loss of 5,000 killed, 40,000 wounded, and 10,000 prisoners. This, combined with their losses in attempting to take Przemysl by storm, when whole regiments perished under the deadly fire of the Austrian artillery, and the menace of the Germans in Northern Poland, led to a retreat of the Russians from Western and South-Eastern Galicia, though not from Lemberg and the adjoining territory. The Austro-German Allies were at the beginning of October again strongly posted along the Vistula and the San, and in possession of the whole of Western Galicia, the Bukovina, and the passes of the Carpathians, besides one-half of the Kingdom of Poland. The Russian attempt to invade Prussia and to destroy the Austro-Hungarian Army had, therefore, so far failed. But new Russian forces were brought up from Warsaw and the adjoining fortresses which caused the Germans to retreat towards the frontier, while the Austro-Hungarians took the offensive in Galicia on the line from Sambor to Stanislawow. The main Armies of Austria-Hungary and Germany and Russia were now in close touch over a front of 270 miles, and on October 14 the whole of Poland west of the Vistula, including the important town of Lodz, "the Polish Manchester," which was captured after severe fighting on October 8, was in the possession of the Austrians and Germans, who, with the Polish legions, penetrated to within half-a-day's march of Warsaw, and caused much indignation among the people by their aviators throwing bombs on the town and killing or wounding many civilians, but they were attacked both on the front and on the flanks by four Russian Armies of 200,000 men each, who after seven days' fighting forced them to retire on October 20. The Polish legions, furious at the order to retreat being given when they were within sight of Warsaw, made a rush forward and had to be surrounded by the Germans to prevent their being annihilated. The German line was then pushed back to Skierniewice, fifty miles west of Warsaw, and on October 27 the Russians reoccupied Lodz, but the battle continued to rage on both fronts with unprecedented tenacity, the Russians fighting with intense energy and spirit. On November 3 they took Kielce, having captured Radom on the previous day, and on November 4 they entered Sandomierz, on the Vistula. On November 8 they resumed the invasion of East Prussia, advancing to Stallupönen, Soldau, and Pleschen, in the German province of Posen. In Galicia, however, the Austrians still held to the left bank of the San, notwithstanding the vigorous attacks of the Russians, who inflicted upon them a loss of 100,000 men besides those who suffered on the other lines of retreat. Meanwhile the Germans, who had brought up fresh troops from the West, resumed the offensive in Russian Poland on November 18, and broke through the Russian lines at Kutno, between the Vistula and the Wartha, compelling the Russians to retire several miles in the direction of Lowicz. In this battle the Russians were stated to have lost 45,000 men, including the Governor of Warsaw, who drove inadvertently into the German lines. After their victory at Kutno the Germans again advanced towards Warsaw, driving the Russians before them, and on the 22nd they were within forty miles of the Polish capital. In East Prussia, too, they drove the Russians from their fortified positions and captured 23,000 prisoners at Wloclawek, on the road to Thorn. The Russian Armies, on their western frontier, now numbered 3,500,000 men, while the Austro-Hungarian and German Armies combined did not exceed 2,000,000. Another great battle took place before Lodz, which, after a fortnight's desperate fighting, with immense loss on both sides, was recaptured by the Germans on December 8, who after being almost enveloped by the Russians broke the ring which was being drawn round them and put back the Russian front before Warsaw. This check was attributed to dissensions among the Russian generals, and General Rennenkampf, who arrived too late to relieve the Russian centre, was, with seven other generals, arrested and brought before a court martial. General Hindenburg, on the other hand, was made a Field-Marshal for what was described by the German General Staff as "one of the finest deeds of arms in the whole campaign," having captured 60,000 unwounded prisoners and 100 guns. The Germans were not able, however, to pursue their advantage; the powerful attacks of the Russians prevented their getting any nearer to Warsaw than Sochaczew, about thirty miles to the west of that city. They strove hard up to the end of the year to push through to Warsaw, but were unable to get any farther than the Rivers Bzura and Rawka, where they entrenched themselves and made a series of fruitless attacks on the Russian positions on the other side of those rivers, Farther north, however, Mlawa, near the Prussian frontier, was retaken by the Germans on December 26. The German main line at the end of the Ysar ran from Mlawa to Ilow Lowicz, and Tomaszow, all of which towns were in their hands, but the Russians remained in occupation of about 8,000 square kilometres of Prussian soil.

Meanwhile in Galicia, the Russians occupied Tarnow on November 13, resuming the siege of Przemysl on the following day, and on December 2 they entered Wieliczka, the centre of the salt mines in Western Galicia, three and a half miles from the outer fortifications of Cracow, which were now invested by them. There was much fighting north, west, and south of Cracow (especially at Limanowa, where the Russians lost 40,000 prisoners), but the city itself escaped damage, none of the shots of the Russian artillery having reached it, and at the end of the year, both Przemysl and Cracow still remained free from the invaders, who temporarily abandoned the advance on them on December 12 after a series of battles in which they suffered heavy losses and were driven eastward for a distance of forty miles. Although Russia had yet made little progress towards Berlin, she had conquered a great part of Galicia, and she had given valuable help to her Allies by compelling Germany to detach large forces from France in order to protect her frontier in Poland.

In November Russia was involved in another war, owing to the attack of the Turkish fleet on the Russian ports in the Black Sea (p. [352]). On November 4, Russian troops entered Asia Minor and advanced for seventeen miles along the road to Erzeroum, and on November 8, they successfully resisted an attack by the Turks armed with German heavy artillery, at Kuprikeui in Armenia, from which there are mountain paths in the direction of Erzeroum. Further attacks were made by the Turks during the rest of the month, and, also in December, in the Euphrates Valley without any notable result, until they reached Ardahan and Sarakamysch in an attempt to regain Kars, when in a three days' battle with the Russians at the end of the year they were driven back with enormous losses, the whole of one of their Army corps having surrendered.

Apart from the two wars, there is little to record in the Russian history of the second half of the year. On September 1, an Imperial order was issued directing that the city of St. Petersburg should in future be designated as "Petrograd" (Peter's City). This was an outcome of the hostility in Russia to everything German, as was a decree issued in November, depriving German and Austro-Hungarian subjects of Russia of their rights to immovable property either leasehold or freehold situated in rural districts near the Russian land frontier, the Baltic, the Black Sea, and the Sea of Azoff. In November an income tax was imposed on all incomes exceeding 1,000 roubles (100l.), at the rate of from 16 roubles (1l. 15s.) up to 15,600 roubles (1,700l.) for incomes exceeding 190,000 roubles (19,700l.), together with a tax on men exempt from military service. As regards Finland and Poland there was no alleviation of the methods of Russification previously practised, although the devastation caused in Poland by the war produced a current of more friendly feeling towards the Poles among some sections of the Russian people. At Petrograd a society was formed for a reconciliation between the Russians and the Poles, which struck medals representing a Russian and a Pole shaking hands; but these were promptly confiscated by the Government, and in the Duma but little was said on behalf of the Poles. The Socialists were pursued with the utmost rigour, their members in the Duma were arrested, and when M. Burtzeff, known by the part he took in the exposure of Azeff and other Russian agents provocateurs, left Russia in 1907 with a regular passport, not having been prosecuted for any offence, returned to that country in order, as he stated in a letter to The Times, to promote "a unity of all nationalities and all parties" in pursuing the war, he was arrested on his arrival in November on a charge of having insulted the Tsar in a Paris newspaper while he was living in France, and sentenced to deportation to Siberia.

As regards foreign affairs, on September 5, Russia joined in the declaration that none of the Governments of the Triple Entente would conclude peace separately; and on October 24 Russia declared to Italy that she would order the liberation of all Austrian prisoners of Italian nationality, provided that the Italian Government would undertake to keep them in Italy during the war, but Italy replied that she could not give such an undertaking, as "every Italian or foreigner arriving on Italian territory, not having been guilty of any crime, was free, and his liberty could not be restrained in any way," upon which Russia withdrew the condition attached to the offer.

II. TURKEY AND THE MINOR STATES OF EASTERN EUROPE.

While war was raging in Central and Western Europe, all the States of the Near East except Serbia and Montenegro, and afterwards Turkey, remained neutral, though they mobilised their forces so as to be ready in case of need.

The most important event in Turkey at the beginning of the year was the appointment as War Minister of Enver Bey, the hero of the Young Turkish Revolution of 1908 (A.R., 1908, pp. 323-7). As a former military attaché at Berlin, he had long been in intimate relations with German military circles, and his influence in strengthening the ties between the German and Turkish Governments soon made itself felt. On January 8 an Imperial Iradeh was issued confirming the appointment of the Inspectors-General of the four Armies and the Commander of the thirteen Army Corps into which the Ottoman Army was to be divided, and among the former was the German General, Liman von Sanders (Liman Pasha), who was also appointed Commander of the First Army Corps. Over 160 superior Army officers were at the same time placed on the retired list. Enver Pasha (he obtained this title on his appointment in the place of that of Bey) was also appointed chief of the General Staff, with a German officer as one of his assistants.

The matters dealt with by the Powers in connexion with the Balkan Wars which had remained unsettled at the end of the previous year (A.R., 1913, pp. 356-7) were the proposed Armenian reforms, the question of the Ægean Islands, and the formation of the new State of Albania. As regards the first of these, the Russian charge d'affaires at Constantinople arrived at a complete agreement in February with the Grand Vizier on the subject. The Armenian community in Turkey was to be represented in the Ottoman Parliament by seventy deputies to be designated by the Armenian Patriarch, and the general inspection and supervision of the judicial and administrative officials in the two sections into which the six Eastern Anatolian vilayets were to be divided was to be confided to two foreign Inspectors-General, to be appointed by the Powers from the subjects of minor European States. Christians and Mohammedans were to be equally represented in the provincial councils of Bitlis and Van, and in proportion to the numbers of each religion in the other councils, but as regards appointments to the public service there were to be as many Christians, if possible, as Mohammedans. The Ægean question, on the other hand, nearly led to a war between Turkey and Greece. In reply to a collective European Note on the subject presented to the Grand Vizier on February 14, the Porte, knowing that the Powers had failed to obtain unanimity for the enforcement of their decisions, stated that it was indispensable for Turkey to possess not only the islands in the neighbourhood of the Dardanelles, but also those which, like Chios and Mytilene, "form an integral part of the Asiatic possessions of the Empire." While accepting, it added, the restitution by Greece of Imbros, Tenedos, and Castellorizzo, the Ottoman Government "will endeavour to secure its just and legitimate demands." Greece, on the other hand, agreed to comply with the decision of the Powers, but demanded a rectification of the proposed Albanian frontier near Argyrokastro (A.R., 1913, p. 357) on ethnological grounds, and offered in exchange a strip of coast line and a grant to Albania of 100,000l. Further, as the islands to be retained by Greece were not to be fortified, the Greek Government proposed that guarantees should be required by the Powers of Turkey against her attacking them, expressing its readiness to give similar guarantees on its part, and also to prevent contraband trade between the islands and the Continent, adding that it would protect the Mohammedans in the islands to be ceded to Greece if the Porte would give a similar undertaking as to the Christians in the islands left to Turkey. The Powers of the Triple Alliance then guaranteed equality of religion and speech in the whole of Albania and the proposed rectification of the frontier, except as regards Koritza, which was to remain Albanian, as soon as the Greek troops should evacuate the portion of Epirus which had been assigned to Albania. The period, however, fixed for the evacuation (A.R., 1913, p. 357) was allowed to pass, and a Greek Note to the Powers of the Triple Alliance, who had insisted on such evacuation, suggested in April that it should be postponed pending the acceptance by Turkey of the proposals of the Powers as to the Ægean Islands. To this the Powers replied on April 24, insisting on an immediate evacuation, and on May 14 the Sultan, in opening the Turkish Parliament, referred to the efforts the Porte was making for a pacific solution of the Ægean question "in conformity with the essential interests of the Ottoman Empire."

Meanwhile great indignation was expressed at Athens on learning that the Turks were subjecting the Greeks in Thrace and at Smyrna to systematic persecution in order to bring about their emigration. In reply to a Greek Note on the subject the Porte stated on June 18 that the troubles in Asia Minor and elsewhere had been caused by the arrival of 250,000 emigrants from Macedonia, and that the Government was taking steps to restore tranquillity in the disturbed districts, implying that the condition of the Greek subjects of the Sultan is a question of internal politics in which Greece has no right to interfere. Prompt steps were, however, taken to punish excesses committed against the Greek populations; sentences of from three to five years' imprisonment were passed on forty-seven Mohammedans found guilty of pillaging Greek houses, and the whole of the Smyrna district was placed under martial law. The disorders were to a great extent caused by the policy adopted by the Turkish Government of quartering Mohammedan immigrants in Greek villages, apparently with the object of interposing a barrier between the islands and the adjoining districts on the Continent in the shape of a solid mass of Mohammedan inhabitants all along the coast, thereby effectively checking the Pan-Hellenic propaganda which had been going on for many years among the Greeks in Turkey (A.R., 1913, p. 354).

Although Turkey had declared at the beginning of the war that she would be neutral, when Enver Pasha became Minister for War preparations were at once made for her taking military and naval action against the Allies. Liman Pasha was appointed commander-in-chief of the Turkish Army on August 27, the German cruisers Goeben and Breslau (p. [183]) were added to the Turkish Navy and entered the Black Sea on October 20, with their German officers and crews, though the Russian and British ambassadors had stated to the Porte that they did not regard the sale of these two vessels as valid, and that the Allies would attack them the next time they came out. Meanwhile, on September 9, the Porte announced to the Powers that the judicial and financial Capitulations, under which each Christian nation was allowed to govern its own subjects within the Ottoman dominions, would be abolished from October 1. The Ambassadors of all the Powers, including Germany, protested against this step, which became practically nugatory when Turkey entered into the war. As regards the measures taken for common action with Germany, the Grand Vizier and most of the other Ministers, though resenting the retention by the British Government of the Ottoman warships building in England,[20] were opposed to them, but had to yield to Enver Pasha, who had the whole Turkish Army at his back, and had adopted the view promulgated by German agents that the only way to save Constantinople and the Turkish Empire from being seized by Russia and her allies would be to enter into an alliance with Germany. Large numbers of German officers, soldiers, and sailors were imported from Germany to serve in the Turkish Fleet, the forts of the Dardanelles, and the Turkish Army, and German merchant vessels served as bases of communication and auxiliaries to the Turkish ships of war. The officers of the German military mission organised military preparations in Syria for an attack on Egypt, and the Syrian towns were full of German officers provided with large sums of money for suborning the local chiefs.

The Ottoman military action began, after a protest against the watch kept by British warships at the mouth of the Dardanelles to prevent the Goeben and Breslau from escaping, and against the British navigation of the Shatt-el-Arab, by an incursion on October 28 into the Sinai Peninsula of an armed body of 2,000 Bedouins whose objective was the Suez Canal; and on the same day the Turkish Fleet bombarded Odessa, Theodosia, and Novorossyisk, Russian unfortified harbours in the Black Sea. No reply having been given to the protest of the ambassadors of the Allies against this outrage, they demanded their passports and left Constantinople on November 1. The Dardanelles forts were bombarded by a combined British and French squadron on November 3, and the fort and troops at Akaba in the Red Sea were shelled by H.M.S. Minerva, upon which the town was evacuated and a landing party destroyed the fort, the barracks, the post office, and the stores. On November 5 "a state of war" was declared to exist between Great Britain and Turkey and the former annexed Cyprus (p. [226]). On November 13 Turkey responded by a declaration of war against Great Britain, alleging that the bombardment of the Russian ports in the Black Sea had taken place because the Russian Fleet had tried to lay mines outside the Bosphorus and committed other hostile acts against Turkey. A British and Indian force also made its way up the Shatt-el-Arab to Basra (Nov. 8-22; p. 245). On November 18 another naval encounter took place in the Black Sea, in which the Russian Fleet engaged the Goeben and the Breslau off Yalta, compelling them to retire, and inflicting severe injuries on the Goeben.

The failure of the Turkish invasion in the Caucasus (p. [348]) caused much friction between the Turkish and the German officers, the latter having preferred the plan of an invasion of Egypt. On December 30 the Sultan of Turkey deprived Hussein Kamel, the new Sultan of Egypt, of all his decorations for rebellion against Turkey. The attempt to start a Holy War in Egypt and other Mahommedan countries proved an utter failure, as it was disregarded by the Mohammedans outside the Ottoman Empire.

Among the minor incidents which occurred in Turkey during the year was the death of "Kutchuk" Said Pasha, who was seven times Grand Vizier (post, Obit.), and the trial by court-martial in April of Colonel Aziz Ali, a distinguished Egyptian officer who had gained popularity and renown among the Mohammedans by his leadership of the Arab resistance to the Italians in Cyrenaica, on charges of having caused loss of life among his troops in Tripoli, of having provoked the enmity of the Senussi, and of having appropriated public funds to his personal needs, and his condemnation to death in consequence of the pressure put upon the members of the Court by his enemies in the Young Turkish party. The news had caused great perturbation and distress in Egypt, where Aziz Ali was well known and highly esteemed, and he was finally pardoned by the Sultan. Another court-martial, which was not influenced by party motives, showed considerable activity in dealing with offences committed by Mohammedans against public morality and the State religion. It ordered the expulsion from Constantinople of fifty Turkish women found guilty of practising or abetting clandestine prostitution, and steps were also taken against "white slave" traffickers, two Turkish women having been found guilty of selling their daughters to Egyptian houses of ill-fame.

In Albania affairs were in a very disturbed state throughout the year. In January an Austrian steamer arrived at Valona from Constantinople with Turkish troops to proclaim Izzet Pasha, the late Turkish War Minister, as sovereign of Albania, but they were at once arrested by the Provisional Government in agreement with the International Commission of Control and the Dutch gendarmerie officers. A more formidable candidate for the throne was Essad Pasha (A.R., 1913, p. 356), whose troops had a sharp fight on January 11 with those of the Provisional Government. On January 15 Ismail Kemal Bey handed to the International Commission his resignation of the Presidency of the Provisional Government, which he had held since the winter of 1912 (A.R., 1912, p. 356), and Essad Pasha then concluded an agreement with the British and German delegates on the International Commission of Control to the effect that he would resign his position as Minister of the Interior and meet Prince William of Wied as the representative of the people of Albania. On February 8, the Powers having agreed to guarantee a loan of 3,000,000l. to Albania, Austria-Hungary and Italy made an advance to the Prince of 500,000l. for immediate requirements, and Essad Pasha started from Durazzo at the head of a deputation of Albanians for Neuwied, the ancestral castle of the Prince, who was to bear in Albania the title of "Mpret," a corruption of "Imperator." The deputation, whose leader was described by the Bishop of Durazzo as "a brigand in the best and worst sense of the term," and "a fox who would require an iron hand to keep him under control," were received at Neuwied by the Prince on February 21, one of its members bringing with him a small casket containing sand, earth, and water from Albania. Addressing the Prince in Albanian, Essad Pasha said that the deputation represented the whole of Albania, and that the Albanians were happy to welcome their new sovereign, to which the Prince replied in German, formally accepting the Crown. The difficulties and responsibilities, he said, had at first made him hesitate, but now that he had decided to meet them he would give all his heart and strength to Albania. He proceeded to St. Petersburg, however, on a visit to the Tsar, before taking up his new duties. Meanwhile an insurrection broke out in Epirus, the Greeks in the districts assigned to Albania demanding a Government of their own under M. Zographos as its chief.

Prince William arrived at Durazzo on March 7, and was welcomed by two members of the International Commission and Essad Pasha, whom the Prince at once appointed an Albanian general. On reaching the palace he appeared on the balcony, while deputations from the neighbouring towns and Albanian societies abroad marched in file before him, but the Albanian people were scantily represented, as the date of his coming was not generally known. The difficulties of his task were considerably greater than those with which the sovereigns of newly formed States have in past times had to contend; the northern clans of the country are totally different in character, language and religion from those of the south, the former, 140,000 in number, being Roman Catholics, and the latter, about 260,000, followers of the "Orthodox" Church, while there were 600,000 Mohammedans scattered all over the country; and the Albanians generally, who had been the spoilt children of Turkey, to whom they furnished some of her best statesmen, generals, and soldiers, had not only hitherto never been taxed, but had received substantial grants of money from the Sultan, Austria-Hungary, and Italy. Moreover, Albania is a land of barren mountains, without roads or railways, which it would require a considerable State revenue to develop. Only a week after the Prince's arrival, the Albanians attacked the Greeks at Koritza, and an intertribal feud broke out between the partisans of Essad Pasha and those of Ismail Kemal Bey; a force of 100 gendarmes under Dutch officers was sent to restore order, but the officers were imprisoned and the fighting went on, houses in the villages being ransacked and women outraged.

On March 18 the first Albanian Cabinet was formed under Turkhan Pasha. Of the other Ministers two were Roman Catholic, two "Orthodox," and the rest, including Essad Pasha, the War Minister, Mohammedans. The first task of the Minister was to deal with the rising in Epirus. The Dutch officer who had been appointed High Commissioner for Southern Albania offered the Epirotes an autonomy which almost limited the union with Albania to a personal one, though he rejected their claim that the Greek language should be allowed absolute equality with Albanian; but the Government repudiated even the concessions he had offered. On March 29 the Ministry requested the Powers, through their representatives at Durazzo, to use their influence with the Greek Government in order that "the regrettable situation in Epirus" should come to an end, pointing out that while the Greek troops were being withdrawn from the districts to be evacuated their place was being taken by insurgent bands (Komitadjis) organised and armed by the Greek authorities; and as no steps were taken to put down the rising, the Prince decided to take over by force if necessary the territory occupied by the insurgents, and himself to take the command of the troops to be sent against them. Meanwhile men were arming in all parts of Albania for the liberation of the threatened territory, and a force of some 10,000 volunteers marched against them. Several encounters took place between them and the Epirotes with varying success.

Events now took a sudden and unexpected turn. Essad Pasha, Minister of War and of the Interior, and hitherto the virtual ruler of the country, was arrested by Austro-Hungarian and Italian sailors on May 19. Essad's house, which was within 300 yards of the Prince's palace, had for some time been filled with armed retainers, and it was no secret that he was planning to dethrone the Prince and take the Crown for himself. On the evening of the 18th it was ascertained that a number of insurgents were marching on Durazzo, and at daybreak on the following morning the Dutch commandant of the gendarmerie called upon Essad's men to lay down their arms. Essad then ordered his men to fire, upon which 300 Austro-Hungarian and Italian marines landed and occupied the town, sending a detachment to Essad's house to escort him to the jetty, where he was placed on board an Austro-Hungarian man-of-war and deported to Italy. The insurgents, however, who had now come within gunshot of Durazzo, assumed such a threatening attitude that on May 24 the Prince and his wife and children took refuge on board an Italian warship, though they returned to the palace two days afterwards. Negotiations were opened with the insurgents by the International Control Commission, but without result. Their demands were chiefly of a religious character, as they asked for guarantees that the Catholic Albanians (the Malissori) would not be sent against them, and they objected to the banishment of Essad Pasha, whom they regarded as a martyr to the Mohammedan religion; but the promoters of the rising appear to have been some officers of the Young Turkish party at Constantinople who were present in the insurgents' camp. One of the demands of the insurgents was for the appointment of a Mohammedan member of the Control Commission. They attacked Durazzo on June 15, but were repulsed by the Prince's adherents, chiefly Mirdites. A two days' armistice was concluded between the Prince and the insurgents on June 22, but at its conclusion the fighting was renewed without any decisive result. On July 9 Koritza was captured by the Epirotes after three days' fighting, and a severe bombardment by the regular Greek Army. As no progress was made in dealing with the insurgents either before Durazzo or elsewhere, a meeting of the loyal populations was held on July 19 at Valona, at the instigation of many influential Albanians, including Ismail Kemal Bey, at which it was unanimously decided to beg the Prince and the protecting Powers to dismiss the Cabinet and place the Government in the hands of the International Commission of Control, as no Albanian Cabinet could deal with the existing crisis, and the Commission alone "can maintain the sovereign on the throne, assure national unity and territorial integrity, and save from certain death over 100,000 refugees." The Prince on his part summoned to the palace the Ministers of Austria-Hungary, France, Germany, and Italy (Great Britain and Russia having no representatives at Durazzo), and addressed them in a brief speech, stating that from the outset the Albanian problem had been complicated by the Epirote question and that the slightest sign of unrest elsewhere only increased the trouble in the South; that the Powers who had placed him on the throne had shown singularly little readiness to assist him in coping with his difficulties; they had helped all the other Balkan States, but had rendered little or no assistance to their special creation; that immediate help was imperative, and he therefore urged the Ministers to address a final appeal to their Governments for military and financial aid. A collapse of the Albanian Government seemed to be imminent; the towns of Klisura and Tepelen, as well as Koritza, were captured by irregular Greek bands with, it was said, Greek troops in disguise, the Mohammedan villages were in flames and horrible atrocities were committed upon their inhabitants. M. Venezelos, the Greek Premier, admitted that deserters from the Greek Army had assisted the Epirotes, but declared that he was powerless to prevent "Greek national sympathies being so strongly engaged on the Epirote side." He added that he thought "the Powers had taken insufficient measures for the creation of an Albanian State." On August 31 a detachment of insurgents with the Turkish flag occupied Valona without opposition, and on the same day another, with artillery, attacked Durazzo, firing several shots at the palace. Next morning they sent a letter to the representatives of the Powers, stating that they expected the Prince to leave the country, and issued a proclamation to the people declaring that as the Prince had not left, the town would be bombarded unless its inhabitants agreed at once to surrender. The Prince then left Durazzo (Sept. 4), and on September 11 Burhan Eddin Effendi, son of the ex-Sultan Abdul Hamid, who was practically the leader of the insurrection, succeeded him, though in the proclamation issued by Prince William to the people on leaving he did not abdicate, but stated that he thought it was best for the task "to which he had sacrificed his strength and life" that he should go for a time to Western Europe, and that the International Commission of Control would carry on the Government during his absence. The Government, however, was taken over by Burhan Eddin, the self-constituted Prince, with Essad Pasha as his Prime Minister and Commander-in-Chief. At the end of the year Albania was under six different regimes. Scutari and its neighbourhood was governed by a local Commission composed of Moslems and Christians. Valona was also administered by a Commission. The Mirdites formed a separate State under Prenk Bib Doda. The Malissors remained isolated under their patriarchal institutions. The southern districts had been appropriated by the Greek invaders. Durazzo and the central regions obeyed Essad Pasha, who enjoyed the title of Prime Minister and was recognised by the International Commission.

On October 1 a noteworthy declaration was made by M. Venezelos in the Greek Chamber, to the effect that Greece would remain neutral, but that she had treaty obligations with regard to Serbia which she would fulfil; he hoped, however, that nothing would occur which should bind her to interfere, as Greece desired that the European War should not spread to the Balkan Peninsula, whose people required peace after the late war. Greece at any rate would not take the initiative in disturbing the peace. As to Epirus he had said on March 10 that the decision of the Powers involved a great disaster for the nation, and nobody could suggest that Greece was in a position to fight Austria and Italy. Greece considered Albania now necessary to the preservation of the balance of power in the Balkans, and, with Serbia, hoped for the success of the new State. On March 19 the Minister of Marine announced in the Chamber, amid enthusiastic cheers from all parties, that three battleships of the Dreadnought type, three armoured cruisers, and a proportionate number of lighter vessels, would be added to the Fleet. On June 13 Greece annexed Chios and Mytilene, the islands which the Powers had agreed were to be ceded to her on the evacuation of Northern Epirus and the cession of the Island of Saseno to Albania; but in October she announced her intention of reoccupying provisionally Northern Epirus owing, among other reasons, to the breakdown of the Albanian Government substituted by the Powers under the Prince of Wied and the expediency of putting an end to the sanguinary anarchy prevailing in that country, as the forces collected by the head of the provisional Epirote Government, M. Zographos, had not been capable of maintaining order or security for life and property against the Albanian insurgents. The Powers not having raised any objection, Greece occupied Northern Epirus with her troops, and at the same time Italy occupied the Island of Saseno, which completely dominates the sea approaches to Valona.

In Bulgaria Parliament opened on January 1 in a new guise, as the general election which had taken place at the end of the previous year in consequence of the resignation of the Cabinet (A.R., 1913, p. 358) had been conducted under a system of proportional representation, and had resulted in a considerable increase of the number of Agrarian and Socialist deputies, doubtless due to the disastrous issue of the last war. There were ninety-nine Ministerialists in the new Chamber, forty-nine Agrarians, thirty-six Socialists, fourteen Democrats, five Nationalists, five Radicals, and one Zankovist. As the Royal party entered the Chamber a Socialist member shouted, "Down with Monarchy, long live the Republic," and when the King began to read the Speech from the throne another Socialist member interrupted him with similar exclamations, saying that 60,000 of the sons of Bulgaria had been sacrificed to the ambition of the Monarchy; after which all the Socialists left the Chamber. The Speech laid stress on the resumption of friendly relations with Roumania and Turkey, and expressed the conviction that the Bulgarian people would now "recuperate its forces in lasting peace and work, and dream only of winning victories in the domain of peaceful development and progress." On the following day the Premier, M. Radoslavoff, resigned to test the strength of his party, and on January 5 the King re-appointed him together with the whole of his Cabinet. Another general election took place to include the newly annexed districts in Macedonia and Western Thrace, which were to elect forty-one members in addition to the 204 of whom the old Chamber was formed. The result of the election was that in the new chamber there were 128 Ministerialists, fifty Agrarians, twenty-eight Democrats, twenty-one Socialists, nine Nationalists, five Radicals, and three Zankovists, giving the Government a majority of twelve over all the Opposition parties, and showing a considerable loss for the Socialists, who seemed to have few supporters in the annexed districts, where the whole Turkish population voted for the Ministerial candidates, with the result that twelve Mohammedan deputies were elected, besides four from Northern Bulgaria. A provisional budget for the months of April and May was introduced by M. Jencheff, Minister of Finance, on April 12. As a reassuring symptom he pointed to the fall in the rate of exchange from 20 per cent. at the end of 1913 to 7½ per cent. The expenditure for 1913 he estimated at 8,000,000l., and the floating debt of 19,000,000l. was to be consolidated. Diplomatic relations with Serbia were resumed on February 17. On June 9 the Prime Minister conveyed the regret of the Government for the attacks which had been made on Greek churches at Sofia, Varna, and Burgas by the people, who had been incited by the priests and an official of the Russian Consulate. During a debate in the Sobranje on the subject the Premier said Bulgaria would do everything to preserve neighbourly relations with the other Balkan States, but that it was difficult to follow this policy owing to the ill-treatment suffered by Bulgarians in Greece and Serbia; a number of refugees who had been beaten and outraged had arrived only on the previous day. Both the Greek and Serbian Governments had ever since the partition of Macedonia done their utmost to destroy all trace of Bulgarian life and culture in the districts which they had annexed. As regards the European War the Premier declared on October 29 that the Bulgarian Government felt it a duty to proclaim the neutrality of Bulgaria and to preserve such neutrality strictly and loyally, in accordance with international needs and principles and the interests of the country, and on the same day the organ of the Bulgarian Foreign Office, Echo de Bulgarie, said that now the dissensions between Turkey and Bulgaria had been settled by force of arms, a bond of friendship had been created by the persecutions to which both the Turks and Bulgarians were being subjected in Macedonia.

In Roumania, which also proclaimed her neutrality at the beginning of the war, at the same time informing the Russian Government that she would not agree to the Russian troops crossing her frontier, a very drastic law was proposed by the Government in May with regard to the districts annexed by her under the Treaty of Bucharest (A.R., 1913, p. 352). It deprived the population of Parliamentary representation, which it had enjoyed for upwards of thirty years under Bulgarian rule, denied them the right of association or public meeting, deprived of his land every landed proprietor who did not accept the Roumanian nationality within one year, and provided that all the Bulgarian schools should be closed or reopened under Roumanian teachers and their revenues confiscated. On June 14 the Tsar arrived with his family on board the Imperial yacht at Constanza, the Roumanian port on the Black Sea, and was enthusiastically received, the Liberal Government and its adherents among the people being in sympathy with the Triple Entente, though the King and his Court were notoriously in favour of Germany and Austria-Hungary. One of the strongest advocates of a policy of friendship with Austria-Hungary, the Roumanian statesman and historian Demetrius Stourdza, died at the beginning of October in his eighty-first year, and King Charles, who with Stourdza was regarded as the founder of the Roumanian State, also died a few days after his old companion and friend. On October 15, as the funeral procession was on its way from the palace to the railway station, an attempt was made on the life of Messrs. Charles and Noel Buxton, happily without any serious result, though both were wounded, by an Albanian Mohammedan who said he acted from political motives, as the Buxtons had been agitating against Turkey. King Charles was succeeded by his nephew Ferdinand of Hohenzollern, like his uncle a Roman Catholic, and married to the daughter of the late Duke of Edinburgh; their six children, however, are members of the Roumanian "Orthodox" Church.

In Serbia the War Minister stated to the Skupshtina on February 23 that the losses of the Serbian Army during the war with Turkey were 5,000 dead and 18,000 wounded, and in the Bulgarian War 7,000 to 8,000 dead and 30,000 wounded. In both wars 2,500 died of their wounds, 11,000 to 12,000 from sickness, and 4,300 from cholera, mostly during the Bulgarian War. A treaty of peace with Turkey was signed on March 13, under which Serbia agreed not to make any distinction as regards the franchise between her new Mohammedan and Christian subjects in the annexed territories, and to allow former Ottoman subjects residing in them three years to decide whether they would remain of the Turkish nationality or accept the Serbian, during which they were not to be liable for military service. In June a Ministerial crisis occurred in consequence of a Government decree giving the civil authorities precedence over the military in the newly annexed provinces. This measure was strongly opposed by the military party, and the Premier, M. Pashitch, asked the King to dissolve the Skupshtina in order to give the people an opportunity of expressing their views on the matter. The King refused unless the decree was first rescinded, upon which M. Pashitch resigned, but, all attempts to form a coalition Cabinet having failed, he was reinstated (June 11). On June 24 the King left Belgrade for the baths at Vranya on account of ill-health, and before leaving delegated full royal authority to his son, the Crown Prince Alexander, for the period of the King's illness.

When Austria-Hungary declared the answer to her ultimatum to Serbia (p. [330]) insufficient, and her Minister accordingly demanded his passports and left Belgrade on July 26, the Serbian troops were at once mobilised. Austria-Hungary declared war on July 28, and on July 30 the Serbians partly destroyed by explosion the bridge connecting Belgrade with the Hungarian town of Semlin and attempted some raids across the frontier which were repelled by the Austro-Hungarian frontier guards. The Austrian artillery replied by a bombardment of the upper and lower forts of Belgrade, in which they were assisted by their monitors on the Danube and the Save. The war in Serbia did not really begin, however, until August 12, when the Austrian Army crossed the Save and the Drina and captured Shabatz and Lesnica. War had meantime been declared by Serbia against Germany on August 6. On August 17 the Austrians continued their advance against the Serbians, the Croats in the Austrian Army, who are of the same race as the Serbians, but are Roman Catholics while the Serbians are "Orthodox" Greeks, specially distinguishing themselves in the fighting. The Austrians were repulsed, however, in a sanguinary battle in the valley of Iddar on August 16 to 19, and had to retire to Shabatz and Lesnica. The fighting in these engagements was stated to have been much fiercer and more sanguinary than any in the recent Balkan Wars. On August 26 Shabatz was retaken by the Serbians, but meanwhile an attack made by them on Wyszegrad and Rudo, in Bosnia, had been repelled with great loss on August 20 and 21. On September 8 the Austrians were defeated in an attempt to cross the Drina near Sacha, and on the 14th the Serbians captured Wyszegrad; but notwithstanding the desperate efforts made both by them and the Austrians to penetrate into the enemy's country neither had for some time any success. Another sanguinary battle, which lasted three days, was fought on the road to Valjevo on September 15 to 18, but with no decisive result. The first effective attack was made by the Austrians down the Morava; it began on November 9 and ended in the occupation of Valjevo, the former headquarters of the Serbian Army, on November 15, and the capture after much violent fighting of Belgrade on December 2. On December 3, however, fresh troops were brought up by the Serbians,[21] which inflicted a heavy defeat on the Austrians, after six days' fighting over a front of more than sixty miles; on December 8 Valjevo was retaken, the Austrian retreat became a rout, and the Serbians re-entered Belgrade, after another battle in which the Austrians were stated to have lost 60,000 killed and wounded.

On September 19 Serbia declared that she would not conclude peace alone and would not act separately from the Triple Entente.

In Montenegro the Skupshtina was opened after a general election by the King on February 11. He said in the Speech from the throne that though "the snatching of Skutari from Montenegro was an incurable wound in every Serbian heart" the Peace of Bucharest had laid the foundations for a new order of things in the Balkans and had secured Montenegrin national interests. "Further national successes," he continued, "will depend solely upon constant joint effort with Serbia and upon traditional loyalty to our powerful Russia." Accordingly, when Serbia was attacked by Austria-Hungary, Montenegro mobilised her army at the request of the King of Serbia for her assistance. This entente cordiale between the Kings of Serbia and Montenegro had not long been established, the two States having been for some time estranged by an attempt of Serbian subjects, with the alleged assistance of the Crown Prince of Serbia, on the life of the King of Montenegro similar to that which had just been made, with fatal results, on the lives of the Archduke Franz Ferdinand and his wife (A.R., 1908, p. 335). The two Balkan Wars, in which Serbians and Montenegrins fought side by side, had to some extent wiped out the memory of old quarrels, and the propaganda for a union of the two countries was now equally strong in them both, though it was not much to the taste of the astute and ambitious King Nicholas, who had hoped before the war that he and not King Peter would be the ruler of Serbia as well as of Montenegro. This, after the Serbian victories, and in view of the far greater material prosperity of Serbia, had now become impossible. The Montenegrins who fought in the war and were treated with special consideration by the Serbians, and especially those who had come from the United States to join their countrymen against the Turks, and found their country as backward in all the arts of civilisation as when they had left it, while the Serbians had made great material progress, were among the most ardent advocates of the movement for a union of their people with Serbia. On the other side, such a union would gratify Serbia's dearest wish—for a port on the Adriatic; and the great popularity of the aged Montenegrin King was the only obstacle to such a union, the Crown Prince Danilo not having gained any sympathisers either in Serbia or in Montenegro.

Montenegro, as Serbia's ally, declared war against Austria-Hungary on August 3. She made several attempts to invade Bosnia together with the Serbians, but without success.

FOOTNOTES:

[20] The money to pay for those two battleships (the Sultan Osman and Reshadich, renamed the Agincourt and Erin) had been raised in Turkey by public subscription, and their retention was bitterly resented, the more so as Greece had just purchased two ships from the United States (post, c. viii.).

[21] This rally was caused by the arrival of fresh ammunition, and by a speech from the King. Despite his age and infirmities, he went to the front and addressed the army as follows: "Heroes, you have taken two oaths, one to me, your King, and the other to your country. I am an old, broken man on the edge of the grave, and I release you from your oath to me. From your other oath no one can release you. If you feel that you cannot go on, go to your homes, and I pledge my word that after the war, if we come out of it, nothing shall happen to you. But I and my sons stay here." Not a man of the army left.

CHAPTER IV.
LESSER STATES OF WESTERN AND NORTHERN EUROPE.

I. BELGIUM.

Until the abrupt violation of Belgian neutrality by the German armies on August 3 the political antagonisms of Clericals and Liberals and of Flemings and Walloons seemed to be growing more acute. The German invasion, with its almost incredible atrocities, swept away the memory of these feuds. The Belgian nation saw all but a small fraction of its land swept by the invaders, and either found refuge and hospitality in Holland, Great Britain, and to some extent in Switzerland, or became dependent for its very subsistence on the charity of the people of the United States. But it did not flinch in its determination to maintain its independence, and at the close of the year it was gallantly aiding the resistance of the Allies to the German advance on Calais and Northern France.

When the year began the Chambers were still debating the Bill for subsidising voluntary schools, and the Flemish Nationalists in both the Liberal and Clerical parties were endeavouring (unsuccessfully, as it proved) to amend it so as to promote the spread of their own tongue at the expense of French. But another question arose which tended to injure the Government. Towards the end of January a severe frost closed the waterways and blocked the State railways with their traffic. The efforts made to cope with the block showed grave defects in the management and the equipment of the lines, and the Central Industrial Committee of manufacturers and traders formally complained to the Minister of the Interior that factories had been stopped and orders and consignments diverted to foreign countries and ports. Politics were said to influence the management, and the financial administration was condemned as defective and unintelligible. A scheme of reorganisation was contemplated, under which the Railway Budget would be rearranged and the management of the system assigned to a Board of fifteen paid members, Senators, Deputies, and State officials being ineligible. This Board would be under the supervision of a Council of seven members, chosen from and by the Parliament, and subordinated to the Minister of Railways. But the scheme was left over till a convenient season.

After much debate and some critical situations, the Schools Bill finally passed the Chambers on May 20, thus terminating the struggle begun by M. Schollaert in 1911. The Liberals and Socialists in the Senate formally denounced the measure as unconstitutional, but declined to take part in the division. The debates on it had crowded out some measures of social reform, but a Bill passed the Chamber providing for the insurance against old age, sickness, or premature disablement of all employed persons, including such State or municipal officials as were not already provided for by pension or disablement funds. But all persons were exempt whose income exceeded 2,400 francs (96l.) annually, as also home-workers with more than one employer. As in Great Britain, the funds were provided by payments from workmen, employers, and the State.

This Bill was hurried through before the elections for the renewal of half the Chamber (May 31), the representatives affected being those of East Flanders, Limburg, Hainaut, and Liège. The Ministry had offended its rural supporters by the new taxes of 1913, and by making military service and school attendance compulsory, and the Moderate Liberals had begun to return to their party, which they had left in 1912 owing to its coalition with the Socialists, now dissolved. Thus the Government majority in the Chamber fell from sixteen to twelve. They lost two seats to the Liberals, who lost one, however, to the Socialists. The Chamber now numbered ninety-nine Clericals, forty-six Liberals, forty Socialists, and two Christian Democrats, and the Ministerial votes in the four provinces amounted to some 570,000, while those of the Opposition—Liberals, Socialists, and Christian Democrats—were some 760,000. Assuming that the party strengths in the other provinces had remained constant since 1912, it was estimated that a Government majority in that year of 83,000 had now been converted into a minority of 7,000. The three Opposition groups, however, could scarcely have formed a coalition, but the Ministerialists had for some years showed signs of cleavage, and there were rumours that the Government were about to appeal to the Flemish vote by either substituting Flemish for French as the language of the University of Ghent or establishing a Flemish University there along with the French one; and M. de Broqueville indicated (at Turnhout, July 5) that the Senate might be invited to amend the Insurance Bill. But all domestic disputes were effaced by the war.

The growing wealth of the kingdom had been shown by an official return issued at the end of March, giving the average annual investment for the past four years in shares or debentures of companies as 870,000,000 francs, of which 450,000,000 francs had been put into Belgian companies engaged in business abroad—mainly in South America, Russia, and the Congo State. Belgium had now definitely joined the group of "creditor nations"—Great Britain, France, the Netherlands and Germany.

Though the violation of Belgian neutrality astounded the world and even upset the defensive scheme of the French Government, there had been ominous signs earlier in the year, which had attracted little notice. Thus the Stavelot-Malmedy Railway, crossing the German frontier, was opened in January without ceremony, for fear of indiscreet allusions by the speakers at the opening festivities to a possible invasion; there was some anxiety as to the fortification of Flushing (A.R., 1913, p. 364), and also as to the undefended character of the frontier of Dutch Limburg, a province which overlies part of Belgium; and in July it was reported that more troops were being sent to Hasselt and to the entrenched camp of Beverloo. Later it became known that King Albert had pressed for the reform in military service effected in 1913, and that in November of that year he had been convinced by a conversation with the German Emperor that that potentate would no longer resist the German war party (French Yellow Book, No. 6). Moreover, military measures to be taken in the event of a German violation of Belgian neutrality had been worked out in 1908 between the British Military Attaché at Brussels, Colonel Barnardiston, and the Belgian General Staff, which had previously worked out a corresponding plan with the General Staff of France. The German Government discovered evidence of this after the occupation of Brussels, and alleged it as a proof of British perfidy, though the plans were purely contingent on German action.[22]

Apprehending danger, the Belgian Government decided to call up three classes of reserves (July 29), and two days later to mobilise—a step which somewhat surprised the British Minister at Brussels. On July 29 the German Chancellor told the British Ambassador at Berlin that German action in Belgium depended on that of France, whom the German Government believed to be massing troops at Givet. Thereupon the British Government asked the French and German Governments whether they were prepared to respect Belgian neutrality so long as no other Power violated it, and asked Belgium whether she were prepared to remain neutral. France and Belgium gave satisfactory assurances; Germany did not (p. [178]). Meanwhile the French Minister at Brussels, M. Klobukowski, had repeated to M. Davignon, the Belgian Foreign Minister, that French troops would not invade Belgium, even if massed on the frontiers, and Herr von Below-Saleske, the German Minister, had repeated to M. Davignon an assurance given by the German Chancellor in 1911, to the effect that Germany did not intend to violate Belgian neutrality, but that to say so publicly would give France an advantage in arranging her plan of operations (July 31). He repeated this, though only as his personal opinion, on August 2; but at 5 P.M. on that day he presented an ultimatum from his Government, demanding that, in view of the massing of French troops near Givet, Belgium should observe an attitude of friendly neutrality towards Germany, and allow German troops to pass through her territory; Germany would in return maintain the independence of Belgium and her possessions, but, in the event of a refusal, she would treat Belgium as an enemy. Twelve hours were given for a reply. A Council of State was at once held, and, after some hours' discussion, a reply drafted by MM. Hymans and Van den Heuvel, was finally decided on at 4 A.M. (Aug. 3). It was presented by 7 A.M., and was a dignified and eloquent refusal. The German Government meantime had sent a Note announcing that the French attack on Germany had begun, and at 6 A.M. on August 4 sent another, announcing that a refusal would be disregarded, and on August 4 intimated that as Belgium had declined her "well-intentioned proposals," they must be carried out by force of arms in view of the French menaces.[23] King Albert on that day addressed the Belgian Parliament, amid a scene of patriotic enthusiasm, and urged a united and stubborn resistance. "A nation which defends itself," he said, "commands the respect of all. Such a nation cannot perish." The union of the nation was marked by the appointment of M. Vandervelde, the Socialist leader, to be a Minister of State. Meanwhile the King had telegraphed a personal appeal for aid to King George V., and had received a reply assuring him of British support to protect the independence, integrity, and neutrality of Belgium. A moratorium was declared; fresh classes of recruits were called up; some 53,000 sappers and navvies were set to dig trenches in the wide spaces between the Liège forts; and Belgium prepared for defence.

Meanwhile the Germans were pressing on. On August 3 they entered Belgian territory at Gemmenich, near Aix-la-Chapelle, Stavelot and Francorchamps, just south of Spa, Dolhain, between Verviers and Herbesthal, and at Visé, on the Meuse between Liège and Maastricht. Their front extended from Visé southward, as far as Luxemburg. At Visé they were fired on by civilians, and the town was subsequently burnt; and on the night of August 4 they attacked the forts round Liège. They advanced in close order, and suffered enormous losses; but by August 6 they had silenced two forts and had vainly asked for an armistice to bury their dead. But passing through the gap thus made, they occupied Liège itself on August 9.

The Belgian resistance had amazed the world. The Germans had not expected it, for they had come without adequate supplies or heavy guns; and on August 9 their Government appealed vainly through that of the Netherlands to the Belgian King and Government, urging them, after their heroic resistance, to spare Belgium further suffering, and declaring itself ready for any compact with Belgium compatible with its conflict with France.

The Germans now came into contact with advanced posts of the Belgian Army, which held a line running from Namur through Ramillies, Tirlemont, and Diest. They were repulsed at Hasselt, Eghezee, and Diest, and Haelen (Aug. 12 and 13), but took Huy after a bombardment. But though they were thus unexpectedly checked, their vast numbers proved irresistible. There was a short lull while they were coming up; but on August 17 the Belgian Government hastily removed to Antwerp; the last forts round Liège fell on August 19; on August 18 the Germans entered Tirlemont, on the 19th they bombarded Louvain, and next day camped outside Brussels for the night. That day (Aug. 20) M. Max, the Burgomaster, had issued a proclamation warning the population against panic, advising them to give no information to the invaders, and promising that he, as Burgomaster, would stand by them. He met the Germans at their entrance, and declared the city undefended; they imposed a levy of 200,000,000 francs on it, and of 450,000,000 francs on the province of Brabant.

Though the French General Staff had regarded a German advance through Belgium as possible, it had made no provision against it till August 2; but it then directed its principal efforts to strengthening the northern section of the French front, and awaited the concentration of the British Expeditionary Force. Meanwhile, however, French troops drove the Germans from Dinant, after a fierce battle. The main German Army (some 600,000 men) having reached Brussels, marched southwards towards Charleroi and Namur. On August 20 the French advanced towards the Sambre. The centre of the Allied Army comprised two armies, the left a third, reinforced to the extent of two army corps, a corps of cavalry, the reserve divisions, and the British Expeditionary Force (p. [189]). The French were beaten back on August 22, the Germans, after heavy losses, reaching and crossing the Sambre between Charleroi and Namur, and constraining the British force, by their superior numbers, to retreat from Mons south-westwards into France (p. [190]). Meanwhile the Germans had been overrunning northern Belgium; they had occupied Louvain on the 19th after a fierce fight, Alost on the 21st, and concentrated before Antwerp next day; but were driven back from Malines by a sortie of the Antwerp garrison. And, after failing to take the forts at Namur, the Germans had overcome them by bringing up their heavy siege artillery, of 42 centimetres calibre, while the Belgian field force defending it were awaiting their attack. They placed guns in position beyond the range of the Belgian guns, and, after a tremendous bombardment of ten hours, the forts were wrecked. Namur fell suddenly and unexpectedly on August 24; and on that night a Zeppelin airship dropped bombs on Antwerp, doing much damage.

In the war of 1870 the Germans had severely repressed civilian attacks on their troops; and their standard manuals of warfare recommended terrorism. This was now carried out to the full. Infuriated by the unexpected Belgian resistance, they killed wounded men, fired on the Red Cross, violated women and little girls, mutilated some of their victims, and even made Belgian civilians of both sexes march in front of them as a screen. But besides these atrocities, which were not repressed by the commanders, the latter deliberately gave up towns and villages to destruction and plunder on the ground—which was usually unsubstantiated—that their troops had been fired on by the inhabitants. Visé was burnt on August 15, Aerschot four days later, the young son of the Burgomaster, it was stated, having shot a German officer; after their defeat at Malines they retreated on Louvain, burning the villages en route; they apparently fired on one another in entering Louvain, and charged the civil population with attacking them; as a punishment they bombarded the town, looted it, and then set fire with hand grenades to the houses that had escaped, destroying the Cathedral, the University Buildings, and the famous Library, with a multitude of priceless MSS., including much early Celtic literature; and they grossly maltreated a number of priests, including two Spaniards and an American. Dinant was sacked (Aug. 22-25) without assignable provocation. Many of the men were shot deliberately, and 1,200 houses burnt out of 1,400; a similar fate had befallen Andenne (Aug. 20-21) for equally unintelligible reasons. These atrocities, unmatched in Europe, except perhaps in the Near East, for nearly three centuries, finally turned the mass of European and American opinion against Germany, and seemed likely to make reconciliation impossible for many years after the war.[24]

For the first four weeks of September the Belgian Army was acting as a screen to Antwerp, mainly in the district between that city and Malines and Termonde. This latter place was bombarded and plundered on September 4, and deliberately destroyed next day; but the Belgians defeated the Germans on September 5 by opening the dykes on them, and so capturing many prisoners. From September 9 to 13 there was heavy fighting round Malines as the result of a sortie from Antwerp, intended to hamper the German advance of reinforcements through Belgium to France, and the main line of communication between Brussels and Liège by Louvain and Tirlemont was cut, thus delaying the inrush of the German troops. But eventually the superior German numbers drove the Belgians back. Again on September 25 the Belgians repulsed the Germans at Audeghem near Termonde, and that place and Malines changed hands more than once. But Malines was finally occupied by the Germans on September 7. The Germans now having brought up their heavy siege artillery opened fire on September 28 on the outer forts of Waelhem and Louvre-St. Catherine (two or three miles north of Malines) and destroyed them by September 30. Two days later the Belgians were driven by German artillery fire from the shallow and hastily dug trenches they had occupied in rear of these forts to new positions on the other side of the River Nethe, their front extending from near Boom eastwards to Lierre. Next day the German attack on this front developed; the neutral Legations began to leave; but the defenders were encouraged by the arrival of a British Marine Brigade under General Paris, which was sent into the trenches at Lierre and repulsed a German attempt to cross the Nethe, but the German artillery forced back the defenders, and on Monday afternoon, October 5, the bulk of the Belgian Army was compelled to retire westwards towards Eecloo and Ghent. Two British Naval Brigades arrived subsequently (p. [220]) and assisted in the defence; but the Germans forced their way across the Nethe, and captured Lierre (Oct. 6); the remaining Belgians and British fell back on the inner ring of forts, and the King and the Allies' Legations withdrew to Ostend. To cut off the Belgian withdrawal, German troops attempted to cross the Scheldt along the line from Termonde to Wetteren, but succeeded after fierce fighting only on October 7, when it was too late. On that day General von Beseler summoned the city to surrender, and on its refusal bombarded it; and on the following night, after destroying quantities of stores, including much petrol, and disabling the German merchant steamers interned in the harbour, the remaining British and Belgian forces withdrew towards Ostend; but many of the First Naval Brigade were captured or crossed the frontier into Holland, and a portion of the Marine Brigade had to fight its way through the Germans at Morbeke. On October 9 the city was occupied by General von Beseler's troops. Four German Army Corps were stated to have taken part in the attack. The fall of the city caused the utmost enthusiasm in Germany, and General von Beseler received the Iron Cross. The refugees were estimated at upwards of 400,000.

From Antwerp the Belgian Army retreated in the first instance on Ostend, its retreat being immediately covered by 8,000 men of the British Naval Brigade and 6,500 French bluejackets, and, farther off, by the British force under Sir Henry Rawlinson, operating in the neighbourhood of Ghent (p. [222]).[25] But the Germans, after severe fighting, occupied Ghent on October 12; next day the Belgian Court and Government left Ostend (which the Germans occupied October 16) and proceeded by sea to Havre, where the suburb of St. Adresse became the temporary capital of Belgium. The Germans now occupied Bruges and Zeebrugge, strongly defending the latter place with a view to its conversion into a base for submarines; the Belgian Army, now reduced to some 60,000, at first had been directed to make a stand in French territory, but eventually took up a position extending along the canalised Yser, from Nieuport-Bains on the Channel by Lombaertzyde to Dixmude; from the last-named place to Ypres and the French border at Ménin the Allies' line was held by French forces and by Sir Henry Rawlinson's troops. On October 17 the German front in Belgium extended from Ostend through Thielt and Roulers to near Ménin; and their primary aim was to capture Dunkirk and Calais as bases for an attack on England. Their direct route thither was blocked by the Belgian Army in the Battle of the Yser (Oct. 16-Nov. 2) in which some French troops, including marines and territorials, took part. Three points in the front were of special importance—the village of Lombaertzyde, a bend of the river near Tervaete, projecting towards the German front, and Dixmude. After two days' fighting, the Belgian advanced posts were driven back (Oct. 10-19); for the next four days the Belgians, now behind the Yser, were fiercely attacked, those in the salient at Tervaete being enfiladed by German heavy artillery; on the night of October 22 the Germans crossed the Yser at Tervaete, and the Belgians, though reinforced and partly relieved by a French force, the 42nd division, were gradually driven back (Oct. 23-30) to a front behind the railway from Nieuport to Dixmude, two or three miles from the Yser. Reinforced again on October 31, but forced back by overwhelming numbers, they opened the dykes, flooded the land with sea-water, and gradually forced the Germans back across the Yser, except from a few isolated farms among the flooded land, which were fiercely and repeatedly contested for some time. On November 16 the Germans fell back from the left bank of the Yser Canal; and for some weeks there was little change in the positions, but in December there was a renewal of activity, and on Christmas Day the Belgians were again on the right bank of the Yser.

During the Battle of the Yser and for some time afterwards—altogether from October 17 to November 9—the Belgians were supported on the left by a British squadron under Rear-Admiral Hood, consisting at first of the river monitors Humber, Mersey, and Severn (p. [224]), the light cruisers Attentive and Foresight, and some destroyers, and subsequently reinforced from time to time by the battleship Venerable and a number of older cruisers and sloops, carrying heavier guns, which bombarded the German troops along the coast and prevented them from advancing on Nieuport by land, while precluding any effort to do so by sea. Machine-gun detachments were landed, German submarine attacks were repelled, and on October 30 the Admiral led a French destroyer flotilla into action off Lombaertzyde. The arrival of French reinforcements and the flooding of the country rendered further bombardment unnecessary; and the Germans, instead of showing themselves in the open, were driven to construct hidden artillery defences in the sand dunes along the coast. Some of the British ships, among them the Amazon, Mersey, Wildfire, and Vestal—the two latter old sloops of war—were damaged, and there were some British casualties from the Germans' shrapnel and heavy guns. In all thirty British vessels took part, including two submarines, and five French destroyers. The Germans were again bombarded at Westende by a British squadron on December 16; but a month earlier their efforts to reach Dunkirk and Calais by the coast route had been definitely checked by the Belgians—supported by French marines, bluejackets, and territorials on land, and by the British and French squadron at sea. Their attempts to reach the coast through Belgian territory farther south, round Ypres, had meanwhile been frustrated by the British and French forces, and the year closed amid signs that they were now on the defensive, and with a reasonable hope that they would be driven back by the Allied Forces in the spring.

Throughout the war King Albert acted as Commander-in-Chief of his Army and displayed the utmost heroism. He was visited by King George V. on December 4 (p. [245]) on the only fragment of Belgian territory not occupied by German troops. The Queen brought her children to England in August, but soon returned to her country.

A Belgian Mission visited the United States in August and September, and had an excellent reception from both people and Government. Much was done to shelter and provide for the 200,000 refugees in Great Britain and the 500,000 in the Netherlands, and for the comparatively small numbers which reached Switzerland; and those who remained in Belgium were actually saved from starvation by philanthropic effort from the United States, directed by an American Commission, and largely administered by Rhodes scholars from Oxford. Belgium had earned the gratitude of the non-Germanic world. Her first resistance to the invaders gave time for the British and French Armies to concentrate, the defence of Antwerp held back forces which would otherwise have been hurled at the Allies on the Aisne, and the battle of the Yser saved Calais and Dunkirk. The Allies were firmly resolved that no peace should be concluded which did not secure the Belgian people all the reparation possible for their tremendous losses, and that they should receive a due recognition of their heroic resistance.

II. THE NETHERLANDS.

Since the formation of a non-party Cabinet in August, 1913, political conflict had been suspended; and for the first seven months of the year the country had little history. In January a Royal Commission was appointed to devise a settlement of the schools question, which had been the subject of repeated controversies since 1878. It was understood that, while regard was to be paid to the interest of denominational schools, the existing State schools would be left untouched. An attempt to settle another controversial question of long standing was made by the Royal Commission on Proportional Representation, whose Report (issued in June) recommended a complicated modification of the Belgian system, treating the whole country as a single constituency, but providing for the representation of localities by allowing voters to indicate their preference for particular candidates on the list put forward by their respective parties. An elaborate and intricate method of determining the successful candidates was also recommended, but the Report was not acted on during the year. A great demonstration in favour of equal suffrage for both sexes had been held in February at Amsterdam by the extreme Liberals and Social Democrats. The heavy cost of social legislation, especially the old-age pensions, necessitated increased direct taxation and an addition to the excise duty on beer. The creation of a new Navy for colonial defence was also proceeded with (A.R., 1913, p. 365). The anxiety set up in France and Belgium by the projected fortifications at the entrance to the Scheldt (A. R., 1913, p. 364) was enhanced early in the year by the announcement that the new fort would not, as had been expected, be situated on a shoal opposite Flushing, where it would have prevented the occupation by an enemy of that town or the coast opposite, but would be placed higher up the Scheldt: so that it might conceivably serve to block that river against the approach of a fleet sent to relieve Antwerp in the event of the violation of Belgian neutrality. Just before the war broke out, again, it was stated that the German Vulkan Company, which owned a huge shipyard at Stettin and was controlled by a well-known millionaire, Herr Thyssen, had acquired a site for a harbour on the Nieuwe Waterweg, one of the chief approaches to Rotterdam. This it was feared might ultimately be used as a German naval base. Questioned on the subject in the House of Commons, Sir E. Grey stated that he was informed that the place would only serve for the transfer of iron ore from sea-going ships to river barges. But anxieties as to German influence in Holland were swept away by the events of the war.

On the outbreak of the war the Government issued a declaration of neutrality (Aug. 3); it had already mobilised its army, to the extent of some 125,000 men, with remarkable efficiency and speed. The export of coal, food, horses and vehicles was prohibited, and an opening of the dykes was contemplated so as to protect the land frontier of the "Holland Fortress," or defended area of the kingdom, if necessary, by inundation. This, however, was not done, since no attempt was made to violate Dutch territory—except, indeed, that a German airman dropped bombs on Maastricht, probably by mistake. The financial disturbance set up was serious for a time; there was a run on the savings banks, and a tendency to hoard coin. The Post Office Savings Bank exercised its right to defer payments to depositors for a fortnight—a step which caused some comment. The Amsterdam Stock Exchange was closed, and a Bill was passed empowering the Bank of the Netherlands to reduce the proportion of specie it was bound to hold against liabilities to 20 per cent. Small paper money was also created, in the form of "silverbons" of one, two and a half, and five florins, and fresh silver was rapidly coined; but some of the towns issued their own "silverbons," to make good the lack of change. A Credit Bank was formed by the retail traders, to enable them to meet the demands of manufacturers and wholesale dealers for payment in cash, and arrangements were made for advances by the Bank of the Netherlands on approved security, under a guarantee from a group of banks against possible loss. A Bill was passed in September, after considerable opposition, enabling the courts to extend the time allowed for payment of debt. The Bourse was placed under Government supervision. A loan of 275,000,000 florins (about 22,000,000l.) was issued in November, subscription being compulsory on persons whose fortunes exceeded 75,000 guilders (about 6,500l.).

The Queen's Speech at the opening of the States-General (Sept. 14) appealed confidently to the nation to avoid endangering neutrality in trade and traffic, and expressed satisfaction at the success of the mobilisation and the union of the people, noting also some improvement in certain branches of trade.

The war, however, did grave injury to industry, notably to the Amsterdam trade of diamond cutting, and to shipping, and food prices rose sharply. Moreover, the country was burdened with the support of some 1,560 British marines and bluejackets and some 22,000 Belgian soldiers who accidentally entered Dutch territory after the fall of Antwerp, besides half a million Belgian refugees. But the burden was borne nobly, and though there was an active German propaganda, the fate of Belgium estranged Dutch sympathy from the German cause.

Luxemburg. The visit of the King and Queen of the Belgians (April 27-29) was entirely successful, and their Majesties received a most cordial welcome. It was thought likely to open the way to closer commercial connexion between the two countries, thus tending to counterbalance the growth in the Grand Duchy of German industrial and trade interests. A projected visit from the Queen of the Netherlands in August was prevented by the war.

The general election, held in June, was fought mainly on the School Law, condemned by the Bishop and clergy, and was a great success for the Government. To some extent, too, it was said to be a demonstration against German influences.

On Saturday evening, August 1, a small body of German troops arrived in motor cars at Trois Vierges, and seized it, but were presently called back as having exceeded their instructions. Next morning, however, a trainload of German soldiers reached Luxemburg itself, seized the station and the bridges on the lines to Trèves and Spa, and proceeded to the barracks, thus violating the neutrality guaranteed by the Powers by the Treaty of London, 1867. But the far more conspicuous case of Belgium drew off attention from this German outrage. The Grand Duchess and the authorities protested, but in vain. For the rest of the year the Grand Duchy was occupied by German troops; and it was, for a time, the residence of the Emperor. Swiss papers stated that numerous citizens were arrested at the instance of German residents, but, as no resistance could be made to the Germans, there were no cruelties. The Grand Duchess was very active in Red Cross work. An indemnity was paid by Germany of 1,600,000 francs, of which 1,283,000 represented damage done to crops and real property, and the remainder the use of roads and public buildings by German troops. It was said to be quite inadequate. The civil administration was allowed to go on under the native authorities, but there was a strict German censorship of the postal, telegraphic, and telephonic services.

III. SWITZERLAND.

Before dealing with the great difficulties imposed on Switzerland by the European War a brief summary must be given of domestic politics during the first seven months of the year. In the spring session the Federal Legislature completed the revision of the factory law, passed the scheme of reorganisation of the Federal Council, and decided to institute a Federal Administrative Court. The National Council had pronounced by a large majority against the Initiative demanding the establishment of proportional representation; but another Initiative, aiming at the prohibition of the games of chance permitted in the Casinos at tourist centres, obtained the requisite number of signatures required for its submission to a popular vote.

The National Exhibition at Berne, opened auspiciously on May 15, was a superb collection of manufactures, of works of art—which gave rise to much discussion—and of exhibits of all sorts representing the actual condition and social and industrial development of the Swiss nation. On July 7 the King of the Belgians visited Berne and was received by the Federal Council. He joined the Queen in the canton of Vaud, and then went on to the Alps of the Valais.

The elections and popular votes in the various cantons made no appreciable difference in the position of parties, or in policy, but in two cantons—Ticino and Uri—financial mismanagement entailed serious consequences. In the former the failure of the Credito Ticinese, of the Banco Cantonale, and of a third and private banking establishment involved losses estimated at 40,000,000 fr. (1,600,000l.) and the arrest of several prominent persons. It necessitated the intervention of a Syndicate of Swiss banks, formed under the auspices of the National Bank. In Uri the Savings Bank, guaranteed by the canton, had invested several million francs in industrial enterprises, and almost the whole of this sum was lost.

Early in July the canton of Geneva celebrated the centenary of its admission to the Swiss Confederation. Of this memorable celebration the climax was the representation in a large and specially constructed theatre of a pageant, arranged by MM. Daniel Baud-Bouy, A. Malsch and Jacques Dalcroze, entitled "La Fête du Juin."

The Federal elections, it may here be added, took place at the end of the year. By common consent they were uncontested, except in a few districts where attempts were made to force on the electorate supporters of the St. Gothard Convention (A.R., 1913, p. 368). The President of the Confederation for 1915 was M. Motta of Ticino, the Vice-President M. Decoppet of Vaud, while another citizen of Vaud, M. F. Bonjour, was elected President of the National Council. The chief work of this body during the year was the passing of the Budget and (in December) of certain fiscal measures designed to cope to some extent with the immense deficit caused by the war in the Customs revenue and the Federal railway receipts. The cost of the mobilisation alone by the end of the year amounted to 104,480,000 francs. At first the Federal Council had considered the immediate establishment of a Federal monopoly of tobacco, or, alternatively, of a special tax on it, and a special levy on capital and earned income; eventually both were postponed for further examination, and also as necessitating an amendment of the Federal Constitution. Provisionally, therefore, new revenue was obtained by an increase of existing taxes and of telephone, telegraph, and certain postal rates. The requisite legislation was formally declared urgent, and was thereby exempted from possible submission to a popular vote.

On the outbreak of the war it became the primary duty and effort of the Swiss nation to preserve its integrity and independence. On July 31 the whole Swiss Army received notice to hold itself in readiness; on August 3 a general mobilisation was ordered, which was most satisfactorily carried out. On the latter day the Federal Chambers assembled, and elected Colonel Ulrich Wille to the chief command of the Army, and Colonel Sprecher von Bernegg Chief of the General Staff. They also invested the Federal Council with the widest possible powers.

For the rest of the year the Federal Administration had to face a very difficult situation. Its declaration of neutrality was followed by a long series of measures necessitated by one of the most critical situations in Swiss history.[26] Besides the purely military measures originating especially with the General Staff—the mobilisation and training of the troops, the war time-table (involving a reduced service) of the Federal Railways, and the construction of fortifications, the deficiency of grain had to be supplied from abroad by the Federal Council, and a kind of monopoly of cereals became inevitable.

On the declaration of war the stocks of grain and flour in hand, together with those in the hands of traders, secured the food supply of the country for three months at most. With the home crop there would be enough, with strict supervision, to last till mid-December. Refraining from sequestration of home-grown grain, the Federal Council confined itself to demanding its sale at the price of imported grain, though its yield was lower. This step had not the desired effect, but fortunately in the spring the Federal Council had made arrangements for a supply with Germany and France. The arrangement concluded with Germany proved ineffectual, the war stopping the transit of grain up the Rhine. Cargoes on their way to Rotterdam were intercepted by the British Fleet. But as compensation Switzerland obtained the delivery of the 2,600 carloads of wheat and some hundreds of carloads of oats stored in German warehouses or in transit by the Rhine at the outbreak of the war. Meanwhile the Federal authorities made considerable purchases in America. The arrangement with France permitted the daily discharge and despatch to Swiss territory of quantities of wheat and oats representing the daily Swiss consumption, but in fact the ports of St. Nazaire and Bordeaux, which were to secure the maintenance of this service, at no time did so, and the average supply continuously fell short of the normal need. As it happened, the deficit could be made good through Genoa, notably in December, when the importation reached its maximum. In January, 1915, the crowded condition of the port of Genoa caused a decline, but the French authorities just then gave permission for importation to Switzerland through Marseilles. Charges were made that the export of wheat to the belligerents had been permitted; but they were unfair and baseless.[27] The supply of fuel was a still greater difficulty; but the courtesy of the neighbouring countries enabled it to be maintained.

The Federal Council had also to prohibit the exportation of commodities indispensable to the nation, and to attempt to obtain the raw materials necessary to the continuance of Swiss industries, it had also to induce the Press as far as possible to observe neutrality so as not to hamper it in negotiation. It had to repress espionage, to regulate the relations of debtors and creditors so as to avert a financial crisis, to enable payments to be deferred, to lessen unemployment, to regulate the relations of workmen with employers whose business was affected by the crisis; it had specially to supplement the stock of silver coin, to issue notes and Treasury bonds of 5, 10, 20, 25 and 40 francs, to create a Loan Bank, and to contract two Federal Loans, of 25,000,000 francs and 40,000,000 francs respectively, and to prepare legislation enabling the repayment of part of the expenditure incurred, which would reach 200,000,000 francs early in 1915.

Immense services were rendered to the country in all financial operations by the National Bank. Under the earlier system of a number of cantonal banks of issue, the crisis would have been far more serious. Nevertheless a host of industries were paralysed, beginning with the hotel industry (p. [187]) and the building trade. Fortunately agriculture has remained important in the national economy.

After a few days of panic on the outbreak of the war among certain classes, with a run on the banks and the provision shops, the public reverted to a saner view of the position. The establishment of military rule and the total prohibition of demonstrations of all sorts contributed largely to this result. Apprehension was quieted by the publication of a statement of the resources of the country and by the means taken to assure fresh supplies of food, and, up to the end of the year at any rate, the gravest results of the economic crisis had been averted by a judicious administration of relief. The public services were put to a severe test, but their immediate difficulties had been overcome. The military organisation had proved to be excellent; so had the railway administration. The financial administration had emerged but slowly from its difficulties. Despite its honesty, soundness and prudence, the crisis seemed to have shown that it needed some additional mechanism.

Protests were made by the Federal Government against the seizure of grain cargoes destined for Swiss use and against an alleged violation of Swiss territory during the air raid on Friedrichshafen (Nov. 21; p. 245). The first difference was arranged amicably; the violation of territory was denied by the British Government.

Finally, the country recovered itself and rallied when confronted by the immensity of the misery demanding relief. The Red Cross Society was unsparing in its exertions. Conclusive reasons prevented the despatch by it of ambulances to the seat of war, but many medical men and nurses went abroad to devote themselves to the care of the wounded. The International Red Cross Committee at Geneva created an Agency for Prisoners of War, which collected the names and addresses of French prisoners in Germany and of German prisoners in France. It transmitted to them letters or parcels sent by their relatives, and though, eventually, direct communication became possible, the Agency was still receiving thousands of demands for information daily after the New Year had begun.

An Agency to deal with interned civilians was also established at Berne, and was assisted by a Committee at Geneva for the Germans and at Schaffhausen for the French. It was indefatigable in its exertions. It served as an intermediary between the belligerents for the repatriation of the persons interned. It took thousands of them under its charge at one or other frontier and conducted them to their own country.

In offering hospitality to Belgian refugees Lausanne led the way. By the close of the year some hundreds of them had arrived and the stream was continuing. They were received by the whole people with a thrill of sympathy, and were distributed throughout the French-speaking cantons. The wave of pity for them spread to German Switzerland; gifts for them poured in; subscriptions were opened for them by the Press; workrooms were filled with clothing and underclothing, and much work was done for them in private houses. While the ingenuity of their hosts was taxed on their behalf and on that of the wounded, it was necessary also to provide for the Swiss who had been deprived by the occupation of the frontiers of their means of subsistence. Here also the Red Cross organisation lent its aid, distributing clothing, boots, underclothing and relief. In charitable work the nation recovered its unity, which for a short time had been compromised by sectional differences of opinion and reciprocal violence of language. The alleged divergence of view between French and German Swiss was largely generated by the allegations in the Press that it existed, and was misinterpreted as a manifestation of cantonal antagonism. Facts may be differently appreciated and feelings may vary in degree, but in the hour of danger the unity of the Swiss people is complete.

IV. SPAIN.

The first days of the year saw the opening of an electoral campaign of a kind entirely novel in Spanish history. By a decree of January 4 the electors of the kingdom were summoned for March 4 to choose the members of the Cortes; the renewal of the Senate was fixed for a slightly later date, in conformity with a precedent dating from the period of the Sagasta Ministry. The various parties had thus two whole months for their propaganda; not too much, considering their strange complication on entering the contest. The old historic parties were irremediably broken up. The former Liberal group was divided into Romanonists and Prietists, who were violently hostile to each other; the Conservative adherents of the Prime Minister were treated by Señor Maura's supporters as renegades, and, with their leader, were advancing by imperceptible stages towards a broad conception of social progress which was destined to win them the sympathy of the King and eventually the Romanonists' support. Señor Dato did not entirely give up the advantages traditionally possessed by Spanish Ministries, but he did not desire to abuse them, and he bid for support for his cause by showing fair play, inasmuch as he allowed his opponents full freedom of speech, of the Press, and of public meeting, so far as was compatible with the preservation of order, and met them, not with prosecutions and arbitrary interferences, but with arguments and projects of reform. As a security that this judicious policy would be continued, he was bold enough to cut short the constant advance towards decentralisation, which had been retarded for years by Parliamentary trickery, by procuring the issue of a Royal decree authorising mancomunidades or combinations of local authorities for public purposes (A.R., 1912, p. 372). That the time was ripe for this reform was proved by the fact that the provinces forming the ancient Kingdom of Castile immediately combined for poor-relief and public works; their example was followed by Valencia and Catalonia. This step visibly discomfited the Opposition. The Carlists and Maurists even accused the Government of stealing other people's plans. The King loyally supported its efforts to combine order with freedom. A few brief periods of temporary difficulty were easily surmounted. The railway strike in Portugal in the middle of January occasioned a careful watch of the whole Western frontier; and through this vigilance the movement was prevented from spreading to Spain. Colonel Labrador, a Protestant, had been condemned by court martial to six months' detention in a fortress for having refused to attend a Mass of the Holy Spirit; the King pardoned him. The increasing popularity of the Ministry exasperated the Opposition to such a degree that it led them into a blunder. They decided to organise a great electoral demonstration at the very heart of the region where their leader had most influence. Don Ossorio Gallardo, who when Governor of Barcelona had mercilessly suppressed the rising of 1909, went there to preside at a great Conservative meeting and banquet. As he was proceeding to the place of meeting at the head of a very demonstrative procession, he was attacked by a band of counter-demonstrators; revolvers were fired, and one of the organisers of his campaign who was beside him was wounded. The Acting-Governor, Señor Andrade, tendered him his condolence; he refused it, and exhibited his irritation even more decidedly by declaring in public that the government of the province had been put up to auction and had gone to the least deserving bidder. These denunciations the Liberal Conservatives and their allies decided to disregard, and these tactics were successful. Order was gradually restored at Barcelona. It was disturbed at Valencia by causes which were not political but social. A general strike was set up (Feb. 25) by a fresh increase of the municipal taxes; as a precaution, all the shops, warehouses, and offices were closed; the troops had to intervene forcibly to restore order.

The result of the general election of the Chamber was considered as a victory not only for the Ministry, but also for the King. He had made himself the mediator between the parties, and it was his delight to enter into relations with all the more important personages of the Kingdom either at the great open receptions at the Royal Palace, or in private interviews, which he granted freely. According to the official figures, of the 404 members elected 356 were Liberals, Liberal Conservatives, or "Reformist" Republicans, the last named having practically come to support, not perhaps the monarchy, but at any rate the monarch. The Ministerial organs, and even the Romanonist, exulted in the success; but the figures were disputed by the Opposition, and eventually the divisions following the more important debates in the Cortes showed that the seats won by the Carlists (or rather Jaïmists), by the Ultramontanes or Integrists, and by the Maurists on the Extreme Right and the Republicans and Socialists on the Extreme Left might be estimated at a third of the total. The elections to the Senate had been completed on April 22. The results were: Conservatives ninety-two, Liberals fifty-one, Catholics ten, of whom eight were prelates, Regionalists six, Republicans seven, Integrists and Jaïmists two each. The session formally opened on April 2, when the newly elected deputies and Senators attended to hear the Royal Speech. But the Chamber adjourned almost immediately for Easter, and then proceeded leisurely to examine whether its members were duly elected; it was not definitively constituted until April 28. Señor Besada was elected President without a dissentient vote, and it was not till May 5 that the debate on the Address was begun. This policy of gaining time seemed to have quieted the Maurist ardour for attack. In the Senate three days sufficed for the debate; the Address was passed by 145 to 71. A much longer time was required in the Chamber; the Ministerial text was passed by 184 to 90 on June 18. But several debates on other subjects had taken place meantime, and had resulted in disorder. That on the interpellation on Morocco introduced by Don Gabriel Maura, son of the ex-Premier, had been especially uproarious, and had led to encounters in the lobbies between deputies and journalists, and to street fights, with bloodshed, between the supporters of the different parties, which compelled the police to take vigorous measures to restore order. Meanwhile a shipping strike was met by the owners with a lock-out, and they refused the arbitration offered by the Government. The strike lasted more than a fortnight, but ended on June 22, without the strikers' demands being satisfied. During this time the Government introduced a naval programme into the Chamber, in the shape of a Bill providing for an annual grant for nine years of 36,000,000 pesetas (1,440,000l.) for the construction of two battleships, two fast cruisers, and a number of submarines; it also secured the passing of a Treaty of Commerce with Italy.

The end of the session was comparatively calm. The Chamber adopted the Treaty of Commerce already voted by the Senate, and the Republicans, by proposing a lengthy series of amendments, prevented the discussion of the naval scheme. As soon as the only measures remaining to be considered were not purely political, the two Chambers were overcome by fatigue. But interesting questions were raised nevertheless. Thus Don Rogelio de Madariaga proposed that a Commission of experts should be appointed to study the question of reducing the gauge of the railways of the Kingdom so as to make it uniform with that of Central and Western Europe. The change became imperative in view of the impending connexion of the French system with the lines of Northern Spain by two new railways through the Pyrenees. The matter was postponed, and the Cortes separated for the recess, first, however, passing (July 9) a slight modification in the concession for the Morocco railway from Tangier to Fez in respect of the part traversing the Spanish zone.

During the recess, the question arose of the attitude to be observed by Spain in the war in Europe. This gave rise to active discussion. The geographical position of the kingdom assured it great advantages, whatever side it might take, unless indeed it should become engaged in a war with France. On July 30 Señor Dato emphatically contradicted a statement to the effect that Spain had undertaken to send an army to relieve the French expeditionary corps in Morocco, and declared that Spain was not bound to any Power whatever by either an offensive or a defensive alliance. As the various declarations of war were issued, the Government intimated its intention to remain neutral, and its behaviour up to the close of the year was in accordance with this decision. The Liberals and Republicans set up an active agitation in favour of Spanish support for the Triple Entente; but the great mass of the priesthood, the Carlists, and a section of the Maurists, demanded a benevolent neutrality towards Germany and Austria-Hungary. The King observed strict impartiality; but he combined the attitude of reserve taken up by him as monarch with a chivalrous recognition of the help given to Spain on various occasions by France. The diplomatic representatives of Spain in Germany and Austria-Hungary were instructed to undertake the protection of French subjects and interests in those countries, and fulfilled their mission with conspicuous dignity. In Spain itself economic measures had to be taken; at the beginning of August a moratorium was established by decree, and the export of cereals and cattle for slaughter prohibited. The censorship was not revived, but the President of the Press Association and the editors-in-chief of the Madrid newspapers were summoned to the Ministry of the Interior, and Don Sanchez Guerra explained to them very clearly the conditions on which the Government would allow the system of freedom for the Press to continue. It was forbidden to cause assemblages or demonstrations by announcing news through the medium of illuminated notices; to circulate false news relating to the events of the war or to diplomatic action; and to insert articles insulting to any of the belligerent Powers. At the same time an active supervision was exercised over the agencies established in Spain to support the interests of Germany, and it disclosed strange manœuvres, both at Barcelona and on the Atlantic coasts. Thus wireless stations were discovered, surreptitiously established in monasteries; they were suppressed, but people were not so optimistic as to hope that there were no others. From the middle of September, and especially after the bombardment of Reims, Spanish opinion gradually turned to open support of the Allies; but the Government remained faithful to its original determination, and the Minister of Public Instruction, Señor Bellarmin, who had gone beyond the reserve imposed on him by his office, was obliged to resign. On October 2 a decree was issued summoning the Cortes for the autumn session, which was a very busy one. The business was, in fact, the Budget of 1915, which had not been dealt with in the spring, being crowded out by the debates on Morocco. The Opposition made some attempts at obstruction, but in vain. Count Romanones loyally and effectively supported the Ministers in limiting the debates on political and diplomatic questions to a few sittings each week, so as to devote the rest of the time to the Finance Bill. The method was straightforward and its effects were happy. The Chamber and Senate approved the Ministerial declaration of neutrality, and took note of Señor Dato's promise to consult them if the course of events should necessitate exceptional measures. Meanwhile, Spain performed her duties with courtesy, and reminded her foreign guests, when necessary, of the respect due to her laws. The German Consul-General at Barcelona had the presumption to demand the prohibition in that city of the sale of all French newspapers whatever, on the pretext that they contained insults to the Emperor and the German Army; he was met with a categorical refusal. On November 15 the Chamber discussed the shooting of Spanish subjects at Liège by the Emperor's troops. The Marquis of Lerna replied for the Government that explanations had been demanded at Berlin, and that an inquiry had been promised by the Secretary of State. In the same sitting the Minister informed the Chamber that France no longer proposed to claim for her members the maintenance of the rights and privileges resulting from the capitulations in Morocco, on condition that they should be treated by the Courts on a footing of equality with subjects of Spain. Two days later the Chamber approved the proposed amnesty for political offenders, in spite of the opposition of the Right. The Maurists did not relax their hostility, but their agitation in no way helped their cause, nor that of their Germanophil allies. A Jesuit, Father Ricardos, great-grandson of the General who invaded Roussillon in 1793, undertook, in a sermon at Alicante, to defend the German Armies; he was hooted by his hearers and compelled to leave the pulpit. A newspaper started by the Hamburger Nachrichten to carry on the pro-German propaganda in Spain insulted the ex-Empress of the French; it was seized by the Spanish police and suppressed. King Alphonso XIII saw his popularity and prestige increasing daily; the Republicans themselves paid homage to his loyalty to the country and his patriotism. When the session of the Cortes closed on December 1, the political and economic situation of Spain was more satisfactory than it had been for a long time past. The rate of exchange had undergone a remarkable improvement; still, great circumspection was necessary, and the Government appealed to the Spanish capitalists who had subscribed for the Treasury Bonds, of which 250,000,000 pesetas were repayable at the end of December, urging them not to require repayment, in order that there should be no interruption in the public works undertaken to relieve unemployment.

V. PORTUGAL.

The complicated mechanism of the Republican Constitution of Portugal could only have worked regularly if a small number of parties, well organised and under strict discipline, had secured the support of the immense majority of the electorate for simple programmes, leaving the form of Government entirely outside discussion. But things did not stand thus. The Monarchists remained irreconcilable and active; the rural classes, whose ignorance was extreme, cared little about the Republic; in the great towns the syndicalist propaganda threatened even the first principles of social order; the middle-class political parties were hardly more than coteries, whose leaders struggled amid personal intrigues. Some excellent people felt anxiety at this condition of affairs, and strove to form homogeneous parties; their efforts were paralysed by the bad habits which were a legacy from traditions that were already ancient. Thus, when on January 5 the session opened, there was reason to apprehend grave complications. However, Señor Affonso Costa, the Prime Minister, made the best of a bad situation. He announced extensive schemes; a Bill forbidding members of the Cortes to hold their seats together with certain offices; reforms in the Budget, securing a surplus of 3,400 contos or 17,000,000 francs (680,000l.), of which 2,400 contos would be spent on national defence. But the majority of the Senate declared itself opposed to him, and on January 10 the Evolutionist Senator Joâo de Freïtas addressed an interpellation to the Prime Minister on a personal question, charging him with having placed his influence as a Minister at the service of clients who consulted him as a barrister. The Minister refused to reply to a calumny. His supporters opposed the nomination of a Committee of Inquiry, and left the House. Other incidents became associated with this scandal; grave Senators sent one another challenges, and for three days a tumult hitherto unheard of converted the Senate Chamber into the semblance of a revolutionary club let loose. Along with this disturbance in the Senate there was a serious strike among the men employed by the Portuguese Railways Company. Seven thousand men left work on a question of pensions. They demanded that the age limit of sixty should be lowered to fifty. Every railway service to Spain was disorganised. The movement rapidly took on a revolutionary aspect. Trains and engines were taken into Spain, and the staff refused to bring them back into Portugal. The Government had the stations occupied by troops; it protected the works of art and, after a week of vigilant efforts and of negotiations, induced the men to resume work (Jan. 21). But it was constantly harassed by the Senate, and the Prime Minister refused to appear in that body until satisfaction had been rendered for the insult offered him. He was supported by the Chamber. The Senate then appealed to the President of the Republic to intervene, by asking him, as guardian of the Republic, to invite his Ministers to observe its orders. The President declared that the settlement of this difficulty lay with the legislative power. The two Chambers met in a joint sitting to vote the adjournment of the session. The Ministerialists proposed a vote of confidence, which was adopted by 114 to 93. The Opposition Senators and deputies then withdrew, and by their withdrawal precluded the regular passage of the other measures before the House. The Ministry found its course hopelessly blocked. It resigned (Jan. 24).

The two Chambers were in conflict. The Democratic Left had the majority in the Lower House; the Unionist and Evolutionist groups of the Opposition in the Senate. Each group, by leaving the House, prevented the other from having a quorum and taking a valid division. The President of the Republic made lavish efforts at conciliation. He selected as Prime Minister Senhor Bernardino Machado, who had come back from Brazil; on February 8 a Ministry was formed, on the 9th it presented itself to the President of the Republic, and on the day following to the Cortes. Its programme comprised an amnesty for political offences, pardons, sufficiently wide in their range, for other convicted persons, the revision of the law separating Church and State, impartiality in electoral contests, and abatement of party strife. As a security that these pacific declarations would be carried out, the new Ministry met the wishes of the Senate on a subject which had brought that body into conflict with the preceding Cabinet, viz. the right of exercising a check on the appointment of Colonial Governors; in return, it obtained from the Senate the passing of a Bill re-establishing the Lisbon Labour Exchange, and, after some days of delicate negotiation, it induced both Houses to vote the proposed amnesty (Feb. 23). The day following, the railwaymen again went on strike, and for some days there was reason to expect disturbances of the gravest kind. The crisis, however, was terminated without resort to force; and, for some months, the Ministry followed a prudent policy of conciliation which diminished the violence of controversy and kept matters going till June. But this temporising method was violently attacked, especially by the Democrats. Senhor Machado decided that the time had come to obtain a new confirmation of his power. On June 20 he resigned, and, when re-appointed by the President of the Republic, he formed an entirely non-party Ministry, to proceed with complete impartiality to new elections; and it secured the passing of the Budget. The election campaign was marked by considerable disturbance, and was abruptly interrupted by the declaration of war by Great Britain on Germany. Portugal found herself involved in the conflict, and was obliged to repel German attacks on Angola. The elections were postponed; the Cortes were summoned for August 7, and were requested by the Government to empower it to take all the measures necessary to guarantee the maintenance of public order, to secure national defence, and to provide for the expenditure that would have to be undertaken in view of the international situation. The Chamber voted urgency and unanimously adopted the Bill laid before it; the day following, the Senate likewise passed the measure unanimously, and the Chambers were prorogued. It must be acknowledged that thenceforward the attitude of the Republican parties was perfectly correct. The Monarchists hesitated to follow their example, although King Manuel wrote on August 20 to his chief representative, Don Azevedo Coutinho, that he had personally placed himself at the disposal of King George V., and the Portuguese Monarchists must think first of their country and the defence of its sacred soil. In the course of October a few irreconcilables attempted a rising, which was a miserable failure; its only consequence was to cause the chief of their party, Don Joâo de Azevedo Coutinho, to write to the President of the Republic demanding permission to serve in the Army should Portugal take part in the European War. His goodwill was not put to the test. The Government contented itself with sending reinforcements to Angola; it suppressed without difficulty a disturbance at Oporto caused by the high price of provisions; and on November 25 it convoked the Chambers in extraordinary session. They unanimously and promptly passed a resolution giving the Government full power to take part in the war in conformity with the national interests and obligations. This resolution differed from that adopted in August, inasmuch as at the earlier date the question had only been one of defensive measures, while this time participation was contemplated in the war in Europe. But Great Britain did not call on her ancient ally for assistance, and it was well she did not, the more so inasmuch as the Germanophil parties in Spain were carrying on an agitation for "Iberian Union," which distinctly involved a menace to the independence of Portugal.

The Machado Ministry did not long survive its triumph. At the beginning of December it decided that its mission was fulfilled, and that party politics again claimed their rights. It therefore resigned, and on December 11 a new Cabinet took office. The Prime Minister was Dom Victor-Hugo Azevedo Coutinho, President of the Chamber, who also took the Ministry of Marine; Dom Augusto Soares took that of Foreign Affairs, Colonel Cervera de Albuquerque that of War, and Dom Alexandro Braga that of the Interior. The Ministry was dominated by the influence of the Democrats and of Dom Affonso Costa, and was commended by the alliance with Great Britain, which was indicated as part of its policy by its organs in the Press. The Ministerial declaration (Dec. 14) contained three essential articles: (1) Defence of the Republican system of government; (2) execution of the measures determined on by the vote of November 23 regarding the war; (3) a general election as soon as possible. These elections were to take place in conformity with the method established by a decree of the Provisional Government, unless the Cortes preferred rapidly to pass a law sanctioning the schemes then before it. The Chamber approved these declarations, and passed a vote of confidence in the Government by 63 to 39. The Senate passed a vote of want of confidence by 27 to 26. Thus at the close of the year the Parliamentary situation was precisely what it had been at the opening; but, given the state of things in Portugal, it was much to have gained a year without a catastrophe or a sanguinary convulsion, for a system as frail as that of the young Republic. The fact that it had lived in spite of pessimistic predictions and hostile attacks afforded some assurance that it would last.

VI. DENMARK.

Whilst in Sweden the war effected a happy solution of an all-important question, which for years had been prominent above all other matters, it had in Denmark the very opposite effect. Instead of the determination which made the Swedes put aside their party feuds in order to arrive at a final and adequate settlement of the question of national defence, the Danish legislators agreed, in view of the war, to suspend the consideration of their leading issue, the reform of the Constitution; but, until this determination was arrived at, the reform dominated the session.

On January 8 Dr. Edward Brandes, the Minister of Finance, introduced the Supplementary Budget for the current year. It showed an additional expenditure of some 11,000,000 kroner (611,111l.), and, as usual, the report on the Budget for the next year was presented the same day, at the first sitting after the Christmas recess. The three political parties supporting the Constitutional reform, the Left, the Radicals, and the Social Democrats, had agreed to a kind of armistice, and although the Report contained 199 amendments, it was exceptionally free from matters likely to cause dissent. The Exchequer Reserve Fund on November 30 had amounted to 15,750,000 kr. (875,000l.), and the sum lent to banks, etc., to 34,364,000 kr. (1,909,111l.). On March 14 the Folkething passed the Budget. For the first time the vote was unanimous. The Social Democrats had never before accepted a Budget.

On March 17 M. Claus Berntsen, the former Premier, as Chairman of the Sub-committee on the Constitution, stated that the most important parts of the Constitutional reform were those referring to the election of members of the Rigsdag. In the Folkething the Government proposal had been maintained, viz., that the vote should be accorded to all citizens of either sex who had completed the twenty-fifth year of their age, and that proportional representation should not be established. As to the Landsthing, the discussion had shown that not only the Conservatives, but also several members of the Left in both Houses would not accept the Ministerial proposal that this House should be elected by the municipal councils. It was therefore now proposed to adopt "the principle of age," allowing all citizens of either sex to vote who had passed the age of thirty-five, and to introduce proportional representation. But persons who already possessed a vote and had completed their thirtieth year would be allowed to vote at the first election to the Landsthing. The Landsthing was to comprise ten members for Copenhagen and the adjoining municipality of Frederiksberg, forty-two would be elected by the larger divisions of the kingdom, one by the Island of Bornholm, one by the Faröe Islands, and twelve were to be appointed by the King after selection, under proportional representation, by the fifty-four elected members. The members appointed by the King under the existing system were still to retain their seats for a further term of eight years. The King would have the power to dissolve the Folkething, and might also dissolve the Landsthing, when the latter had twice rejected a measure twice passed by the Folkething, provided that a general election had taken place between its first and second passing by the latter assembly. Some questions were left open in order to leave room for discussion with the Conservatives and concessions to them. The Radicals and the Social Democrats accepted the proposal now set forth, whilst the Conservatives expressed great disappointment and surprise at the "alliance" between these two parties. Prior to this decision a number of discussions had taken place, the Premier declaring the Conservative amendments to be impossible, and a debate on them futile. The Conservatives desired that the electoral qualification should be determined by income, that the minimum age of voters should be higher, that alterations in the Constitution and in taxation should only be carried by specified majorities, and that the Landsthing should in no circumstances be subject to dissolution.

On April 7 the definitive constitutional measure was introduced in the Folkething. It was on the lines of the above proposal; and, as regarded the respective position of King and Government, it followed in the main the existing Constitution. The number of members of the Folkething is to be fixed by a special law—it must not, however, exceed 140—and this measure is also to determine the different constituencies and the mode of election. The members are to be elected for a period of four years. The Landsthing is to comprise seventy members, fifty-four elected as in the proposal above referred to, and sixteen to be co-opted by proportional representation by the fifty-four elected members, detailed rules for the proceedings to be embodied in the forthcoming Elections Bill already mentioned. Henceforward a deputy will be elected for each member of the Landsthing, to take his place if absent or succeed him in the event of his resignation or death. All persons are to have a vote in the elections to the Landsthing who have completed the thirty-fifth year of their age, and any person will be eligible for election to the Landsthing who has a vote in the election for it, provided he resides within the division for which he is a candidate. This last restriction does not apply to the sixteen co-opted members. The last clause dealt with future alterations in the Constitution, which may be introduced both during ordinary and extraordinary sessions. Should an alteration in the Constitution be accepted by both Houses and the Government desires to advance the matter, the Rigsdag is to be dissolved and a general election to both Chambers held. Should the measure be passed both by the Folkething and the Landsthing during the next ordinary or extraordinary session, in unaltered wording, and be sanctioned by the King, it will become law.

On April 17, M. Rode, Minister of the Interior, introduced the new Elections Bill in the Folkething, at the same time announcing the withdrawal of the election measure passed by the Folkething the previous autumn, and then before the Landsthing. The number of constituencies for the Folkething was fixed at 120; besides their representatives, twenty members were to be elected as follows: When the results of an election of the 120 members are known and the number of votes recorded for each party has been added up, the total number of votes recorded for the whole country is then divided by 140. The aggregate votes of the different parties are then divided by the quotient of the above-mentioned division by 140, and by this method it is determined to how many out of the 140 members each party is entitled by the aggregate number of votes cast for its candidates. It is then ascertained how many members each party has returned in single divisions and it is then calculated to how many additional members each party is entitled. Parties which have not returned any candidates are debarred from obtaining any additional members, as are parties which at the general election have returned their full number of members or more. The additional seats due to each party go to those of its candidates who were not returned, but who obtained the highest percentage of votes within a constituency.

As for the Landsthing, the fifty-four members elected by a general election are divided amongst nine electoral divisions. The mode of election resembles that existing at present, inasmuch as it is indirect, and conducted by chosen electors. At present, however, each rural municipality only chooses one elector, but for the future at least three must be elected. The rule is, one chosen elector for each 350 inhabitants, and the election is by proportional representation. Should a municipality not have the 875 inhabitants which is the minimum entitling it to three electors, it combines with its neighbouring municipality to form one electoral division. The d'Hondt method of election is used in the municipalities. The sixteen members of the Landsthing referred to above are elected for eight years, as are the other members, of whom half are elected every fourth year as at present.

The Bill came up for first reading on April 21 and was supported by spokesmen of the Left, the Radicals and the Social Democrats, although the spokesman of the first mentioned gave it a somewhat reluctant support, as his party did not favour proportional representation or an increase in the numbers of the Folkething. The Conservative spokesman was not at all satisfied. The Bill was referred to a Committee of fifteen.

On April 28 the so-called constitutional parties—those in favour of the new Constitution—held meetings confirming their agreement of April 4 and extending it to the Election Bill, "the faithful follower" of the constitutional measure. On May 6 the Folkething passed the Elections Bill with some modification as to the distribution of constituencies between the different parts of the country. It was passed by ninety-seven votes to one. The single opponent was one of the seven Conservatives, the other six abstaining, and seven members were absent. The Bill then went to the Landsthing.

In the Landsthing the spokesman of the Left, on May 13, stated that some members of his party were not greatly in favour of the Bill; the representative of the Conservatives was still less so, but the measure was promptly referred to a Committee of fifteen. The Left in the Landsthing framed a fresh Elections Bill, which, after several party meetings, was accepted by the Left, the Radicals, and the Social Democrats of both Chambers, on May 22. The new proposal, which was more provisional in character, did away with the twenty additional members of the Folkething and introduced proportional election in Copenhagen and the three largest provincial towns.

The three "Constitutional parties" now thought that all difficulties had been removed and that both Bills would be promptly passed, but on June 2 the Conservatives stopped progress in the Landsthing by leaving the House in a body before the third reading of the Elections Bill. When the division was taken thirty-three votes were recorded for the third reading, but the Chairman ruled that the division was invalid, thirty-four votes, or at least one above half the number of the Landsthing being required. The Conservatives similarly obstructed the Constitutional reform when the measure, coming from the joint committee of the two Houses, was introduced in the Landsthing for final reading on June 8. None of them were present; but the two groups (thirty-two members) forwarded a communication to the President, stating that they did not propose to attend and giving their reasons for their decision. Their chief reason was that the Elections Bill and the Constitutional reform had been linked together by the three other parties, and that the Conservatives held that the former Bill ought to be laid before the constituencies at a general election. Again thirty-three votes were recorded in favour of the Bill then before the House, and the President again declared the vote invalid.

On June 13 the Landsthing was dissolved in a Council of State, for the first time since the Constitution of 1866 came into operation. The King and the Premier differed on the question whether the dissolution also applied to the members appointed by the King for life, the King maintaining that they could not be affected by a dissolution. Eventually the Government agreed that the question should be left in abeyance until after the election, as the voting might produce a majority in the Landsthing for the measures in question independent of the life members, in which case the question might remain an open one until disposed of otherwise. Should it, however, prove necessary for the Ministry to propose to the King that he should nominate other members in order to effect the object of the dissolution—a prompt and clear decision as to the two measures—His Majesty's attitude to this proposal would decide whether the Ministry should retain office or not.

The election to the Landsthing took place on July 10. The Left gained three seats, the Radicals two, twenty-nine supporters of the two measures and twenty-five opponents being returned. The Landsthing now, with the retention of the Crown nominees as before, contained thirty-eight supporters of the two measures and twenty-eight opponents. The new Landsthing met on July 21. M. A. Thomsen was elected President, an office which the Conservatives now had to relinquish after forty-eight years of undisputed sway. The Constitutional reform and the Elections Bill were both promptly reintroduced on that day and referred to committees on the day following. On July 29 the seven Conservative members of the Landsthing Committee produced twelve amendments which the Government could not accept. Then, before a final result had been achieved, the war broke out. By mutual consent it arrested the progress of these much-discussed measures.

On August 1 the King issued a message to the nation, emphasising the strict neutrality of the Government and all responsible persons, and urging the people collectively and individually to act accordingly. On the same day, as a precautionary measure, 19,000 men were called to the colours; Danish neutrality was safeguarded by placing mines in the Belt, and the German frontier was guarded by Danish troops.

Within a few days several emergency measures were passed by the Rigsdag, including a first extraordinary vote of 10,000,000 kr. (555,555l.) for the War Minister, laws empowering the Government to prohibit the export of a number of articles and to regulate the price of articles of food, and providing State grants in support of municipal aid funds. Three of the above measures were passed by both Houses in one day, August 6, at a series of sittings, the fourth the day following. It may here be added that though great efforts were made to influence Danish opinion in favour of Germany in the war—a work in which M. Bjorn Björnson, son of the famous author, was prominent—they were by no means successful.

On August 19 the Folkething passed new rules of procedure, under which the President and the two Vice-Presidents are elected by proportional representation and a permanent financial committee is established.

The extraordinary session closed on September 22. Although the Government had determined that the Constitutional reform and the Elections Bill should be passed during the session and thus made ready for the general election, which was required in order to confirm them, the two measures were left undisposed of. A number of minor measures regulating various matters in view of the war had been passed in the meantime.

The Rigsdag assembled again at the usual time, the first Monday in October. The Budget for the next financial year was introduced in due course. The revenue side had risen to 124,930,000 kr. (6,940,555l.) against 121,337,000 kr. (6,740,944l.) in the Budget for the current year; the total expenditure amounted to 111,380,000 kr. (6,187,777l.) against 108,768,000 kr. (6,042,666l.) for the current year. From the apparent surplus of 13,500,000 kr. must, however, be deducted about 10,700,000 kr. to cover expenditure under the "acquisition of capital" clause, the final surplus thus being some 2,800,000 kr. The Minister of Finance stated that it had been difficult to draw up a Budget, in view of the uncertainty as to the development of the political crisis in Europe; he had tried to steer a sober middle course.

In a Council of State on November 30, the Minister for Iceland laid before the King proposals from the Althing for alterations in the Constitution and the flag for Iceland, asking the King to sanction them. The Althing desired that measures concerning Iceland should not be introduced, as under the existing system, in a Danish Council of State, but should be laid separately before the King as a purely Icelandic matter. This the King refused to sanction and the Minister for Iceland then withdrew the proposals.

The King next refused to sanction the proposal for a separate flag for Iceland, as he desired first to confer personally with leading politicians of the island, whom he intended to summon to Copenhagen, about the different proposals. The Minister for Iceland, M. Sigurd Eggers, then tendered his resignation, which the King accepted.

The royal meeting in Malmö (Dec. 18 and 19) caused sincere satisfaction in Denmark; King Christian and King Haakon both expressed to King Gustaf their lively pleasure in accepting his invitation. The official announcement subsequently issued briefly stated that not only had the meeting further cemented the existing good relations between the three northern kingdoms, but the negotiations had confirmed the mutual agreement existing as regarded the various special questions raised, and it had been decided to continue the co-operation so happily inaugurated when circumstances made it desirable, through renewed meetings of representatives of the respective Governments.

VII. SWEDEN.

In the political history of Sweden 1914 will stand out as remarkable in more respects than one, many anticipations were upset, and one very vital problem was at last satisfactorily solved. It afforded the Swedish nation further opportunities of manifesting its fervent patriotism, and its different phases produced dramatic incidents of singular interest. That the European War also set its stamp on much of the history goes without saying.

The great speech delivered by M. Staaff, the Premier, at Karlskrona (Dec. 21, 1913), had further stimulated public interest in the problem of national defence, and M. Staaff's disinclination to grapple promptly with the entire question excited an opposition which was encouraged in many ways and grew rapidly, manifesting itself especially amongst the ancient and proud class of freehold peasant farmers.

The Riksdag was opened as usual on January 16. The new Budget caused some apprehension, inasmuch as it reached the formidable total of 311,461,200 kroner (17,303,400l.), an apparent increase compared with 1913 of some 37,000,000 kr. (2,055,555l.). The revenue comprised 212,367,600 kr. from taxes, etc., 50,733,800 kr. from the State's productive funds (railways and other investments), 7,500,000 kr. share of the Rigsbank's profit for 1913, 1,226,100 kr. sundry minor items and 39,633,700 kr. loans. The increase was mainly from taxes, etc., viz. about 35,000,000 kr., new items of importance being the tobacco tax and the yield from spirits under the new system. On the debit side the ten different departments accounted for 167,718,271 kr. ordinary and 46,362,729 kr. extraordinary expenses, making a total of 214,081,000 kr. (11,893,388l.). Interest on national debt, etc., amounted to 27,042,000 kr., fund reserved for defence expenditure to 5,000,000 kr., and expenditure for increase of capital 63,807,100 kr., etc. Most branches of expenditure showed an increase.

The chief question which marked the year, that of national defence, became prominent almost at once. On the first day of the so-called "Remisse" debate, January 23, in a crowded house, with the Crown Prince and Prince Eugen amongst the listeners, Professor Trygger in the First Chamber and the ex-Premier, Admiral Lindman, in the Second, severely criticised the Government policy of defence. Professor Trygger vehemently denounced it as lacking in clearness, energy, and consistency, the two features he most condemned being those relating to the period of drill for the infantry and to the increase of the number of ironclads. The defence tax the Conservatives would gladly bear, if the money were effectively applied. Admiral Lindman spoke in a similar vein, pointing out that the Riksdag could never wish for a higher task than the satisfactory solution of the defence question, but things did not promise well. An unprecedented responsibility, said M. Lindman, at this moment rested upon the Government. If it would, it could really solve the defence question, but would it? Was it altogether a vain hope, that the Government and a majority in the Riksdag might be seen working together on this question, firmly resolved to raise it above other questions, above party ties, in unity for the sake of the Fatherland? M. Staaff spoke in both Chambers, reiterating the substance of his Karlskrona speech, and he was supported by the Liberal spokesmen, the Social Democrats speaking in their usual vein. The proceedings gave little hope of the desired solution.

Meanwhile the preparations for a national demonstration, such as had rarely, if ever, been witnessed, were progressing, and on February 6 some 30,000 "peasants" (the Swedish peasant has always been ready, when his country called upon him) from all parts of the country arrived in Stockholm—admirable arrangements being made for their journey, reception, and accommodation—to wait upon the King and give expression to their patriotism and zealous desire to see the defence of the country promptly and adequately provided for. From time immemorial, it must be remembered, the Swedish peasant has frankly gone to his King when he was in trouble or had something special at heart. King Gustaf's reply to the effect that he would abide by the demands of the naval and military experts raised a twofold storm, of loyal enthusiasm within the defence parties, of dissent and anger amongst the Liberals and Social Democrats. The supporters of the Government maintained that the King had gone beyond the purpose of the great peasant demonstration, and that he wanted to bring his personal influence to bear upon the development of the question, irrespective of the Constitutional Government. The Liberal party at once held a meeting, and determined that the Ministry should in any case await further developments, and the next day the Social Democrats in the Riksdag demonstratively showed their displeasure in the debate on the King's civil list.

Demonstration now followed upon demonstration. Two days after the imposing peasant procession the Social Democrats arranged a counter move, and had no trouble in mustering a similar number, aided, to some extent, by their women and children. M. Staaff and some of his colleagues received a deputation from the Social Democratic procession, headed by Mr. Branting as spokesman, who handed an address to the Premier, demanding a reduction of the military burdens and insisting that the Swedish people never would yield to demands from a personal Monarchy; only the will of the people should rule in Sweden. M. Staaff in his reply maintained the necessity of national defence, declaring that the principles of democracy were as sacred to him as to them.

The day following a vast number of the leading representatives of Swedish science, art, and literature decided to present an address to the King, thanking His Majesty for having, through his firm words to the peasants' procession, maintained the King's ancient and constitutional right to represent the country's highest interests, irrespective of party politics.

Sooner, probably, than was expected came the result of the King's message to the peasants. M. Staaff, the day after the Royal speech, forwarded to the King a lengthy communication, to the effect that the measures of defence which the Government was about to lay before the Riksdag, though very comprehensive, yet might not fulfil all the expectations or demands of the military authorities. The King, however, in his message to the peasants, had said that he "would not abandon the demands as to the efficiency and readiness of the field army," "which by the experts within my army are stated to be indispensable." M. Staaff wanted to know whether the King would refuse to sanction any proposal which did not fully comply with these demands, and whether His Majesty in any respect had made up his mind beforehand as regarded the impending proposals, before his constitutional advisers had had an opportunity of humbly submitting their proposals and the views which had prompted them. The King replied that, as he had not seen the Government proposals or the experts' opinion upon them, he could not yet answer that question. (Hence the King could not have made up his mind beforehand.) To the second question the King's reply was to the effect that it was evident that he had not beforehand made up and could not make up his mind in any question, without first hearing the statements of his constitutional advisers or their proposals in Council.

This answer was not considered satisfactory by M. Staaff, who again addressed a communication to the King containing a drafted reply to be signed by His Majesty, stating amongst other things that his speech to the peasant procession was in no way intended to have the character of an act of State. The King's reply was in the main a short repetition of his answer to the former communication. A third letter from M. Staaff asked the King, when he intended to make any public statement of a political nature, to communicate it beforehand to the Government. The King replied, that he could not consent to this, as he would not deprive himself of the right to speak untrammelled to the people of Sweden.

The Staaff Ministry then resigned (February 10). On the day following some 5,000 Swedish students, in a great and enthusiastic procession, waited upon the King, and were greeted on their way to the palace with the utmost enthusiasm. In answer to their loyal and patriotic homage the King made a lengthy reply, maintaining at the outset his constitutional right and duty to state openly and without restraint his opinion of what he thought was for the good of his people; and, having urged the youth of the nation to assist him in his labours, the King wound up by saying: "Forward to our goal; a free and strong Sweden!" The proceedings were altogether marked by the most spontaneous enthusiasm.

The same day M. Staaff made a lengthy statement in the Second Chamber; the Liberals placed the responsibility upon the new Cabinet, and M. Branting, on behalf of the Social Democrats, thanked the retiring Government.

The formation of a new Ministry, as might have been expected, did not prove easy. Baron de Geer tried, but failed, and on February 13 the King entrusted M. Hammarskjöld with the task. Whilst Baron de Geer had tried to form a purely Liberal Ministry, M. Hammarskjöld, who had been a member of two previous Governments and Swedish Minister in Copenhagen, favoured the formation of a Conservative Ministry; the King, however, asked him to attempt the formation of a Liberal Government. On the 16th M. Hammarskjöld had his list ready as follows: M. Hammarskjöld, Premier and War Minister; M. K. Wallenberg, a well-known banker, Foreign Affairs; M. B. Hasselrot, President of one of the Courts, Minister of Justice; M. D. Broström, a large steamship owner, Minister of Marine; M. O. P. von Sydow, Interior; Baron J. G. Beck-Friis, Agriculture; M. A. F. Vennersten, Finance; Professor G. Westman, Ecclesiastical Minister; and Colonel B. Murcke, M. S. I. Stenberg, and M. S. N. Linner, Consulting Ministers. It may be noted that M. Wallenberg is the first Swedish Foreign Minister not of noble birth. The Hammarskjöld Ministry, admittedly, counted amongst its members some very able and distinguished men. It was formed solely to solve the defence problem.

The Riksdag was promptly dissolved (March 5), the Government at the same time publishing its manifesto or defence programme. The latter contained the various items embodied in the proposals of the defence committees, with the so-called "winter-line,"[28] coupled with the adoption of the Sverige type of warship. On the 11th the Liberal Union issued their manifesto, also containing the Defence Committee's proposals, but with the "summer-line" and leaving the naval plan in abeyance, as the committee had not completed its report on the Fleet; this programme consequently kept all which had been promised in the Karlskrona speech.

Ultimately the Ministerial programme was substantially as follows. The period of training for the Army was extended to 250 days (Nov. to July) with courses of thirty days each in four subsequent years. To the Navy were to be added two new divisions of four warships each for coast defence, the Sverige being included in the first; sixteen destroyers, two divisions of sea-going submarines, and two divisions of torpedo-boats.

An electioneering campaign followed, more violent and passionate than Sweden had ever witnessed, and perhaps rather disproportionate to the actual differences between the combatants. But there were, no doubt, deeper political instincts and influences at work. The result was a most serious set-back for the Liberals; most of the seats they lost went to the Conservatives, the rest to the Social Democrats. The respective strength of parties in the former or "A" Riksdag had been: Right 65, Liberals 101, Social Democrats 64; in the new or "B" Riksdag, the Right took the first place with 86 seats, the Social Democrats had 73, whilst the Liberals had become the smallest party, with but 71. The Left or Liberal joint majority in both Chambers, however, had not disappeared, though reduced from 76 to 34.

The new Riksdag assembled on May 18, and was occupied solely with the question of national defence. M. Staaff presided over the deliberations of the Defence Committee in a manner for which even his staunchest opponents felt it right to compliment him. Meantime no progress could be made, no solution reached, and even distinctly Liberal organs urged a speedy settlement, even if the demand for strictly Parliamentary Government must be postponed. The defensive programme set forth by the Social Democrats found no support whatever outside their own party.

On June 13 the Government introduced the Bill imposing a special tax for national defence. This tax is charged on income and capital jointly, according to a comprehensive sliding scale, the taxed sum comprising 10 per cent of capital; an income of at least 5,000 kr. is taxed on its full amount; on smaller incomes the tax is degressive, on larger it is progressive, the limit being reached at incomes exceeding 250,000 kr. (13,888l.), a sum which is increased, for purposes of taxation, by 1,250 per cent. The tax is 1 per cent. of the taxed amount; in other words, instead of increasing the percentage, the amount is increased. The measure in question devoted about 37,000,000 kr. (2,055,555l.) to land defence and 24,000,000 kr. (1,333,333l.) to naval defence, the expenditure being non-recurrent. The entire revenue from the defence tax was estimated to amount to 75,000,000 kr. (4,166,666l.).

Eventually the Liberals went a considerable way towards meeting the Government, declaring themselves ready to accept the ironclads of the Sverige type and to extend the "summer-line" drill period from 280 to 310 days, the additional thirty days to be applied, ten for the extension of winter drill and the balance to the drill of the older classes in accordance with the Ministerial proposal. The Ministerial party, or rather the distinctly Conservative section, declined to accept this offer, which gave a month less for the period of drill than that of the Government. The offer of the Liberals to go beyond the Karlskrona programme was made just as the European War began; the Social Democrats now also rallied to the support of the Government. Their leader, M. Branting, at a large meeting of his party, telegraphed to M. Hammarskjöld, offering his support in the efforts to preserve and defend the neutrality of Sweden, and assuring the Premier that he might "reckon upon the confidence of a united people." M. Hammarskjöld at once telegraphed back an appreciative acknowledgment.

An interesting incident of the controversy was the exchange between M. Staaff and M. Hammarskjöld of open and exceedingly friendly letters, truly Swedish in tone and essence. The former gave hopes of a speedy settlement of the defence question, which soon were to be realised. Towards the end of August the delegates of the different parties, who had discussed the question with the Premier, arrived at an understanding; it only remained for the entire Defence Committee to give its sanction, which was a foregone conclusion, and on September 12 the great and all-important defence question was happily solved, the Government proposal, with immaterial modifications, was passed in the First Chamber without any division, and in the Second by 127 to 70, 23 votes being void. When fully established the new scheme will involve an annual expenditure on the Army of some 64,500,000 kr. (3,583,333l.) as against 55,250,000 kr. (3,069,444l.) and on the Navy of 26,000,000 kr. (1,444,444l.), an increase of some 4,000,000 kr. (or 222,222l.); besides this, some 4,000,000 kr. were applied to the coast artillery.

At the same time as the defence question engrossed the interest of the Riksdag, the necessary measures were passed to emphasise and support the neutrality of Sweden. On August 12 the Riksdag unanimously voted 50,000,000 kr. as extraordinary expenditure for defence on account of the international situation, and the Ministerial declaration as to the observance of strict neutrality met with the fullest support.

The dissolution of the Second Chamber and the consequent election were followed by a general election in September, the existing Riksdag, however, remaining in function. This general election confirmed the trend of the spring election by further reducing the Liberal members; the seats they lost were gained by the Social Democrats, who now constituted the largest party, 87, the Right remaining at 86 and the Liberals being reduced to 57. As a result the Social Democrats at a party congress somewhat vaguely declared, by 90 votes against 58, their willingness to accept the responsibility of government, jointly with the Left.

Some other military measures were disposed of, as were several railway bills, a Schools Inspection Bill, and other legislation. The most important bill passed was one making the tobacco industry and trade a State monopoly, calculated to yield a very material revenue. The scheme is to be worked through a huge limited company, beginning operations about the middle of 1915, and in which the State is to be heavily interested financially and will exercise the necessary control. The great total abstinence reform, which had a warm defender in M. Staaff, was frustrated through the inability of the Chambers to agree upon the question of local veto, but the temperance movement is being furthered in many ways. The same fate befell the Women's Suffrage Bill; the Second Chamber had passed it by 107 to 84, whilst the First Chamber negatived it by 76 votes to 46.

After an unusually long session, lasting nominally seven months, though from the end of September there had been no regular sittings, the "B Riksdag" was prorogued on December 17.

A Germanophil movement was headed by M. Sven Hedin, the famous explorer (A.R., 1913, p. 386), and found support in the fear inspired by Russian military preparation for some years past in Finland, in the propagation of war news from German sources, and in the close commercial relations subsisting with Germany. But there were indications of a change of feeling before the end of the year.

Sweden, like her Scandinavian neighbours, has jealously guarded her neutrality, large portions of the reserve and other classes being promptly called under arms. Her declaration of neutrality was followed within a few days by an undertaking with Norway that the one country should not take hostile action against the other.

The feeling of cordiality and joint interests between Sweden, Denmark and Norway was further emphasised and consolidated by the meeting of the three Kings, accompanied by their Foreign Ministers, in Malmö (Dec. 18), at the invitation of King Gustaf, an act of the Swedish King which caused the deepest satisfaction in the three countries. It was called partly to deal with the economic hindrances set up by the war to the trade of the three countries, and the official communication announcing its results stated that it had been agreed to continue the co-operation.

King Gustaf underwent a serious operation on April 9, with eminently satisfactory results. His severe illness and subsequent recovery afforded opportunities for the display of their abundant loyalty by his people.

VIII. NORWAY.

The centenary of the recovery by Norway of her independence as a kingdom made the year notable in other respects than the political. The centenary exhibition demonstrated most effectively the wonderful growth of Norway's resources during the past century.

The Storthing assembled on January 12. M. Lövland was re-elected President of the Storthing and M. Mowinckel of the Odelsthing. On the following day the King in person opened the sixty-third ordinary Storthing. After a reference to the centenary and the century of peace enjoyed by the nation, he stated that the past year had been satisfactory in most departments of home enterprise, and announced a number of measures for the furtherance of industry and commerce; the Budget had been framed without resort to fresh taxation. It showed an ordinary expenditure of 154,900,000 kroner (8,605,555l.) and an extraordinary of 15,081,000 kr. (837,833l.), a total of 169,981,000 kr. (9,443,388l.). The ordinary expenditure showed an increase of 12,880,000 kr., reduced by certain counter-items to 7,300,000 kr. On the revenue side certain taxes and other sources of income exhibited an increased yield over that of the previous year. Even thus early M. Castberg, the Minister for Commerce, expressed views diverging from those of his colleagues: he desired a higher income tax and legacy duties and a reduced Customs tariff.

On January 20 the Government introduced a proposal to appoint a Defence Commission of fourteen civilian members, with the right, however, of calling in military experts. The Commission was to investigate all questions connected with national defence, both military and financial, and examine into the possibility of adopting a system on Swiss lines in order to effect a closer connexion between the Army and the nation.

During the debate on the Customs tariff in February the Premier caused some surprise by not attending the Storthing, and it was understood that on this subject M. Castberg had managed to override his chief. In the debate on the Labour Arbitration Bill, again, M. Knudsen, the Prime Minister, had to humour his troublesome colleague by stating that, in view of the undoubted divergences of opinion on the arbitration clause, he felt sure that both the Government and the Storthing would be most careful in resorting to compulsory arbitration. They would let the contest between employers and employed go on until both sides felt that the struggle must be ended and that the authorities must interfere. M. Castberg declared himself much reassured, and hoped that the statement meant that the new institution should be used, when the men themselves demanded it, for the protection of their interests. Nevertheless he continued to emphasise his divergent views as against the more moderate members of the Government, more especially the Premier, not only in the House but at public meetings; and on April 16 this very Radical Social Minister resigned his seat in the Cabinet, preferring to work as a private member for his aims and ideals. He differed also from M. Gunnar Knudsen on the question of maximum working hours, insisting on a nine hours' day and a fifty-one hours' week, whereas the latter would not go beyond a ten hours' day and fifty-four hours' week.

On February 28 the Storthing rejected the proposal of M. Bryggesaa, the Minister for Ecclesiastical Affairs, to annul Clause 7 of the Constitution, empowering the King to propose a successor, should there be no heir. In the same sitting the Storthing also rejected the proposal to make women eligible as Ministers of State, although M. Abrahamsen, the Minister of Justice, defended the proposal. The adverse minorities were respectively 41 and 44.

On April 23 the Storthing considered the exploitation of the large Nore waterfalls, owned by the State; general disappointment was felt when M. Urbye, the Minister of Public Works, stated that the plans had not yet been finally dealt with, and therefore would not come before the House in the current session.

In the beginning of May the Military Committee of the Storthing handed in their report on the Army Estimates, amounting to 17,550,500 kr., an insignificant fraction less than the sum proposed by the War Department. There were to be no more Generals, the field artillery regiments were each to be divided into three, and the extension of the regimental drills from twenty-four to thirty days would be dealt with in a separate Bill.

On May 13 the Storthing, by 78 votes to 44, decided to divide the Parliamentary session, in accordance with the decision in the Union of the Left, the Government stating that they, too, were in favour of an autumn session, although they did not give their reason. Several Committees were to continue their labours during the recess.

On June 9 the Storthing, by 85 votes to 25, passed a resolution, requesting the Government to see that all alcoholic drinks were prohibited at all military and naval practices, for all ranks alike. The resolution, however, was not acted upon.

On June 26 the Storthing decided that the principal naval dockyard should be extended and that two submarines should be built at Norwegian yards. On July 4 the proposal to appoint a Defence Commission was passed by the Storthing, the adverse minority being 35. The Premier stated that the most important question for the Commission to consider was whether more effective results could not be obtained for the actual military expenditure. More especially the Swiss system should be borne in mind. On July 6 the Storthing unanimously passed the new extraordinary defence tax on income exceeding 4,000 kr. (222l.) and capitals exceeding 100,000 kr. (5,555l.). The tax is to be levied according to a sliding scale, which deals somewhat leniently with incomes not exceeding 10,000 to 15,000 kr. (555l. to 832l.). The measure is subject to revision as regards the fourth term of the tax, and will thus come up for further consideration hereafter.

Just before the close of the session (July 3), the Premier made a Cabinet question of a vote of some 250,000 kr. for the instruction of small holders, a question to which he had given much time and attention. M. Hagerup-Bull, the Conservative spokesman, complained that Cabinet questions were getting rather too frequent. The measure was duly passed.

The session was closed on July 8. The Storthing was to meet again on October 19, but the war altered its arrangements entirely. The results of the six months' work were very moderate, and some of the Government measures were severely criticised and left for subsequent revision.

The war, however, necessitated a short extraordinary session, and the Storthing met again on August 8, a circumstance which was in itself a telling comment on an unfortunate reference by the Premier in the spring "to the cloudless sky of Europe." The War Minister (M. Keilhart) resigned the same day and was succeeded by General Holtfodt, Norway's youngest General. A vote of 10,000,000 kr. (555,555l.) for extraordinary military measures was promptly passed and other measures were adopted in view of the situation. A general moratorium had already been proclaimed; the Government was empowered to extend it, and to render the notes of the Bank of Norway temporarily inconvertible into gold. Much satisfaction was expressed at what might be described as a declaration of confidence between Norway and Sweden. Before the members separated the President emphasised the spirit of unity which had marked the proceedings during the short extraordinary session, all contentious questions being for the present left entirely in abeyance. Under these circumstances the work done later on was confined to some committees which meet in October. All the important measures, including a revision of the law on insurance against sickness, an extension of the Bank for workmen and small holders, and a comprehensive measure of reform of factory legislation, were left for a more favourable season, politically and financially. Naturally a drain on the Treasury is set up in many ways, directly and indirectly, by the war.

The Storthing of 1914 formally closed its session at a meeting on January 8, 1915. In spite of a very active German propaganda, the national feeling tended to favour the cause of the Allies.

The Spitzbergen Conference was opened in Christiania on June 16. Twenty-three representatives were present from nine countries (Great Britain, the United States, Russia, France, Holland, Germany, Denmark, Sweden and Norway). The conference had not completed its labours when the war broke out, and separated with the understanding that it would again meet early in 1915.

FOOTNOTES:

[22] See North German Gazette, quoted in The Times, October 14, 1914.

[23] The diplomatic history will be found in the Belgian Grey Book (British official translation, Cd. 7627).

[24] The Belgian Government published a series of official reports detailing these atrocities (see also p. 251). They were reprinted, with those of the French and Russian Commissions of Inquiry, in an "Official Book of the German Atrocities" (London, 1914, 1s.).

[25] Details of the retreat of this force were not yet published in April, 1915.

[26] An adequate summary is impracticable here. Details will be found in the Report of the Federal Council to the Federal Assembly dated December 1, 1914.

[27] On importation, exportation, and the application of Act VII. of the Hague Convention, students may be referred to the Journal de Genève, December 10, 1914, January 10 and 12, 1915.

[28] The terms "winter-line" and "summer-line" refer to the rival proposals regarding the periods of military service, the "summer-line" period being the shorter.

CHAPTER V.
SOUTHERN ASIA.

I. PERSIA.

The Viceroy of India, in his speech closing the Imperial Legislative Council on March 24, in which he reviewed briefly foreign affairs in connexion with India, was able to speak of the work of the Swedish officers and the gendarmerie organised by them as eminently successful. The force was employed during the winter in patrolling the roads, and it dealt with the robber bands which infested them. The improvement in the returns of British and Indian trade in Southern Persia was the best evidence of the efficiency of the work of the gendarmerie. Another force dealt with the situation on the trade route between Bunder Abbas and Kerman, and, although it had some serious engagements with the Perso-Baluchi tribes, there was every reason for confidence in its ability to establish order in the near future.

The young Shah Sultan Ahmad Shah, now a youth of sixteen, was crowned with considerable ceremony at Teheran in July, and took the oath of fidelity to the Constitution before the Mejliss. He was only a child of eleven when his father, Mahomed Ali, was driven into exile, and no opinion can yet be formed of his character or abilities.

When Turkey joined in the war against England and her Allies the Persian Government, on November 4, issued a Proclamation declaring a strict neutrality. This however did not prevent a Turkish force from advancing on Tabriz during the last days of the year. The local Persian authorities were not in a position to offer any resistance; they could merely record a formal protest, to which the Turks replied that they would evacuate Persian territory when the Russians did so.

II. THE PERSIAN GULF AND BALUCHISTAN.

An agreement was concluded with the French Government by which France recognised the new arms traffic regulations drawn up by the late Sultan of Muscat at the instance of the British Government, and abandons the privileges and immunities secured by ancient treaties. It is hoped that this will effectually stop gun-running on the Mekran coast.

III. AFGHANISTAN.

The relations between the Government of India and His Majesty the Amir continued to be cordial.

Representations had to be made regarding serious outrages on the Frontier by residents of Afghanistan and by outlaws from British territory who had taken refuge in Khost. These representations were met by the Amir in the most friendly spirit, and he issued stringent orders to his officers on the Frontier to deal severely with all offenders. It was reported that the Khost outlaws implicated had been arrested and sent to Kabul for trial.

In his reply to the Viceroy's letter, announcing the outbreak of hostilities between Great Britain and Turkey, the Amir expressed his deep regret at the step taken by the Turkish Government, and declared his firm intention to maintain a strict neutrality, and added that he had issued a proclamation enjoining the same on all his subjects.

IV. NORTH-WEST FRONTIER.

Apart from the raids from Afghan territory already mentioned, the Frontier remained quiet with two exceptions. An outrage by the Utman Khels in the north of the Peshawar District led to a blockade of the tribe, which produced the desired effect.

There were two serious raids by the Bunerwals in which eight British subjects were killed and considerable property taken. On February 23 a column was sent to punish the villages mainly at fault. In spite of the most trying conditions of weather and roads the operations were carried out most successfully. The force met with little serious opposition, and returned without loss after inflicting exemplary punishment on the offending villages.

V. BRITISH INDIA.

(1) FINANCE.

At the meeting of the Imperial Legislative Council on March 2 Sir William Meyer, the new Financial Member, reviewed at length the annual Statement which had been presented a few days previously. After paying a warm tribute to his predecessor, Sir Guy Fleetwood Wilson, he pointed out that, owing to the disappearance of the Chinese opium revenue and other causes, the prosperity budgets and large surpluses which had marked the latter's term of office, and had enabled the Imperial Government to distribute doles to the Provincial Governments, could no longer be looked for. It was, however, a matter for congratulation that the ordinary revenue had been sufficient to provide for the necessary expenses of the Government without imposing additional taxation.

Revised Estimate, 1913-14.—The Budget Estimate, given in millions sterling with decimal points, showed Revenue, Imperial 53.044, Provincial 29.280, Total 82.324; Expenditure, Imperial 51.718, Provincial 32.193, Total 83.911. The result was thus an Imperial surplus of 1.326, and a Provincial deficit of 2.913, or a total excess of Expenditure over Revenue of 1.587. A Provincial deficit is, however, not a real deficit; it is met by the Local Governments drawing on the large balances already in hand.

The figures of the Revised Estimate were: Revenue, Imperial 53.619, Provincial 30.643, Total 84.262; Expenditure, Imperial 52.291, Provincial 31.384, Total 83.675, giving an Imperial surplus of 1.328 and a Provincial deficit of ·741, or a total surplus of ·587. The Imperial surplus was thus almost exactly the same as that entered in the Budget; the decrease in the Provincial deficit was due partly to underspending and partly to an improvement in the sources of revenue allotted to Provincial Governments.

On the Revenue side certain sub-heads showed a material difference between the Budget and the Revised Estimate. Under Customs there was an improvement of 492,000l., reflecting the prosperous conditions which had prevailed over the greater part of the country. Busy trade in the early part of the year necessitated an addition to the currency and the seigniorage on the consequent coinage amounted to 136,000l.; an increase in small coinage likely to be required in the famine districts raised the total improvement under Mint to 164,000l. The net receipts from Railways were expected to be 104,000l. less than the Budget Estimate, owing to dull trade in the closing months of 1913, increased expenditure on rolling stock, and the repair of damage to lines. There was a falling off of 276,000l. in Land Revenue, due to the failure of the kharif crop in the United Provinces and adjacent areas and the consequent remissions or suspensions. The greater demand for canal water in the United Provinces, and the revision of rates in parts of the Punjab, produced an increase of 149,000l. under Irrigation. There was an improvement of 156,000l. in the Income Tax Receipts, chiefly due to the large profits realised by banks and industrial concerns in Calcutta and Bombay in the preceding year. Miscellaneous receipts gave an increase of 127,000l. In the Excise Revenue there was an increase of 454,000l., owing to general prosperity, especially in Madras and Bombay. The income from Forests was expected to be better by 177,000l.

Reviewing the Revenue as a whole, the Financial Member was of opinion that it showed satisfactory progress. Excluding opium altogether, the receipts for 1912-13 were 81,738,000l., whilst for 1913-14 they were expected to be 82,656,000l.

The Imperial Expenditure was expected to be 573,000l. in excess of the Budget Estimate, whilst the Provincial Expenditure would be 809,000l. less. The Military Charges accounted for 392,000l. of the Imperial increase; the main cause of this was the rise in prices of food and fodder.

Budget Estimate for 1914-15.—The figures were: Revenue, Imperial 54.261, Provincial 30.772, Total 85.033; Expenditure, Imperial 52.981, Provincial 33.981, Total 86.962. The result anticipated was thus an Imperial surplus of 1.280 and a Provincial deficit of 3.209, or on the total account a deficit of 1.929.

The total Revenue given above was 750,000l. in excess of that shown in the Revised Estimate, 1913-14. The heads under which the chief improvements were expected were Land Revenue, Opium, Post Office, Stamps, and Excise, whilst a falling off was allowed for under Customs, and in the net receipts from Railways owing to continued increase in the working expenses. The aggregate improvement budgeted for amounted to 771,000l., of which the Imperial share would be 642,000l. and the share of the Provincial Governments 129,000l.

Although the Expenditure provided for showed a total increase of 3,287,000l. the increase in the Imperial Expenditure was only 690,000l. The increase under military charges, due mainly to continued rise in the price of food and fodder and to the provision for the extra pay of officers in British regiments granted by the Home Government, accounted for 487,000l. of this total. The estimated Imperial surplus of 1,280,000l. was not more than should be held in reserve as a margin of safety to meet unforeseen calls, but it was proposed to make grants from it to Local Governments amounting to 240,000l. in all, of which 100,000l. would be for the improvement of communications in Burma, and 100,000l. for Education and Sanitation.

Ways and Means.—The capital requirements for 1914-15 were estimated at 12,000,000l. for railways, 1,200,000l. for irrigation, 700,000l. for Delhi, 700,000l. for repayment of India Bonds, 3,200,000l. for outlay from Provincial balances, and 100,000l. for Local Loans, Imperial and Provincial—giving a total of practically 18,000,000l.

The assets by which these requirements would be met were 4,600,000l. to be taken from balances, 1,300,000l. forming the Imperial surplus, 3,300,000l. representing the Rupee loan of 5 crores, 6,200,000l. sterling borrowings, 1,800,000l. of unfunded debt, 700,000l. from famine insurance allotment and minor items. Total 17,900,000l.

The Rupee loan of 5 crores was the largest hitherto raised in India, but it was warranted by the success which had attended the last loan, and by the fact that the price of rupee paper in England stood higher than that of the sterling loan.

Sir William Meyer gave a full account of the proceedings of the Imperial Delhi Committee constituted on April 1, 1913, and the progress that had been made in the work on the new capital. The question of expense was dealt with in great detail by the Viceroy in his speech closing the session on March 24. His Excellency admitted frankly that the estimate of 4,000,000l., mentioned in the Government of India's despatch of August 25, 1911, to the Secretary of State, was based on insufficient data. A most careful and complete estimate had now been framed by the Delhi Committee and was under the consideration of the Government of India. Subject to modifications that might be made, the total cost amounted to 5,113,620l., to this another million should be added to provide for contingencies and unforeseen expenditure. The strictest economy and supervision would be exercised over all branches of the work, and some returns might be expected. The Government of India was of opinion that, even if the estimate were accepted in full, the total cost of the new capital would not exceed 6,000,000l. This would be spread over a period of twelve years from the commencement of the work in 1912.

In presenting the Budget in its final form on March 21, the Financial Member stated that the changes in the figures of the Statement originally laid before the Council were small and unimportant. The net result in the Revised Estimate of 1913-14 was to raise the Imperial surplus by 159,000l. and to reduce the Provincial deficit by 139,000l.

As regards the Budget for 1914-15, it was now expected that the Imperial surplus would be less than the original Estimate by 24,000l., and that there would be a small reduction in the Provincial deficit.

Under Ways and Means there was no material change in the original figures. It was calculated that on March 31, 1915, the cash balances would stand at twelve and one-third million pounds sterling in the Indian and at about five millions in the Home Treasury.

(2) FAMINE.

In reviewing the state of the area affected by famine at the close of 1913 it was observed that, although there was a considerable amount of distress, the stage of actual famine had hardly been reached, but, if the winter rains failed, the prospect would be very serious. They did fail to a very great extent, and the little rain that fell only slightly mitigated the existing distress. In his speech in the Legislative Council on March 24 the Viceroy observed that the state of things, though serious, was not nearly so bad as in the famine of 1907-8. There were also other circumstances which tended considerably to improve the situation. The people had enjoyed a series of good harvests in previous years and in the present year there was a prospect of an excellent spring harvest in the Punjab. Past experience had enabled the Government to deal with famines far more efficiently, suspensions and remissions of land revenue had been promptly and generously granted, advances to agriculturists had been made on a large scale, arrangements had been carried out for securing a supply of fodder, and the railway rates for its carriage had been reduced. There had also been a great improvement in the spirit of the people themselves; they were more hopeful and self-reliant, and more ready to move to other districts in search of work. There was still a large class of the population which had to be supported by gratuitous relief, but the number seeking employment on relief works was far less than in previous famines.

At the end of July the number of persons employed on relief works was 4,684, whilst 102,338 were receiving gratuitous relief. The monsoon of 1914 was, on the whole, good, and the condition of the famine districts soon became the same as that of the rest of India, throughout the whole of which prices continued high till the close of the year, causing considerable distress amongst the poorer classes.

(3) PLAGUE.

As was to be anticipated from the returns for the last quarter of 1913 the plague statistics showed a considerable increase. The total number of deaths from October 1, 1913, to September 30, 1914, was 264,760, against a total of 181,668 for the corresponding months of 1912-13. The highest monthly total was 57,577 in March, the lowest 1,439 in July.

(4) BRITISH INDIA—GENERAL.

In closing the Legislative Session on March 24 the Viceroy was able to announce that a satisfactory settlement of the very intricate question of the treatment of Indians in South Africa had been reached, and that a telegram had that day been received from General Smuts that a Bill would be introduced into the Union Parliament to give effect to the report of the Commission. Unfortunately an equally satisfactory statement cannot be made regarding Canada and British Columbia. Here the grievance is not the manner in which Indians are treated within the Colony, but the almost absolute refusal to admit them at all. Although this attitude of the Colonies was perfectly well known, a steamer, the Komagata Maru, was chartered by certain Indian leaders, some of whom were known to be agitators and are believed to have been acting under German influence, for the conveyance of some 300 Indians, mostly Sikhs, to Vancouver. They were not allowed to enter the Colony (May 21), and it was with great difficulty that they were persuaded to re-embark and return to India. On the arrival of the Komagata Maru at Budge Budge, a station on the Hooghly near Calcutta, they were met by officers deputed to arrange for their dispatch by special trains direct to their homes at Government expense. The first train, with about sixty passengers, was despatched quietly, but, whilst the second train was being prepared, the men who were to be sent off suddenly fired on the police with revolvers which they had concealed, and one European officer was killed and three or four others wounded. The police were compelled to fire on the rioters, of whom sixteen were killed (Oct. 2).

Last year reference was made to the existence of widespread conspiracies (A.R., 1913, p. 400) the object of which was the overthrow of British power in India by any possible means, including murder and outrages of all kinds. Early in 1914 the Punjab police succeeded in discovering one of the most important of these. Eleven men were placed on their trial on a charge of conspiracy to commit murder, before a special court of sessions at Delhi, which began its proceedings in May. These lasted for three and a half months and resulted in three of the accused being sentenced to death and four to transportation for life, whilst four were acquitted. It is impossible to go fully into the details of the case, but a general outline of it affords an excellent illustration of the manner in which the work of sedition is carried on in India and who are engaged in it. In 1904-5 one Har Dayal, a resident of Delhi and a student of great promise in the Punjab University, was sent to St. John's College, Oxford, on a State scholarship of 200l. a year. He visited India in 1906 and delivered lectures, chiefly to students at Lahore, on the supposed needs of India. In 1908 he resigned his scholarship, and, returning to India, commenced a further course of lectures, openly advocating sedition, but not yet murder. Not long afterwards he left for America, where he is believed to have remained, making over his work to Amir Chand, accused No. 1, who carried it on zealously. In October, 1912, a Committee was formed at Lahore with the object of promoting anarchy on the lines followed in Bengal and the United Provinces, namely the distribution of inflammatory literature, teaching the art of manufacturing bombs, planning outrages, and engaging tools to commit them. If the attempt on the life of the Viceroy on December 23, 1912, was not actually planned by these conspirators they certainly knew who were engaged in it. Leaflets approving it were issued by them and distributed broadcast, and were even posted up in the colleges at Lahore. On May 17, 1913, a bomb was exploded in the Lawrence Gardens, Lahore, with the intention of killing Europeans, but, owing to the failure of the courage of the man engaged, the only result was the death of an Indian orderly. Various other outrages were planned, but miscarried from one cause or another. In October, 1913, there was a fresh outburst of activity and publication of leaflets. It was the search for these that led to the discoveries which resulted in the eleven accused being brought to trial. Most of them were young men who had received their education in Government schools and colleges, and some of them had obtained good posts in the public service. Although these conspiracies may be described as widespread, they were so only in the sense that they were carried on by agents in all parts of India. The men who actually took part in them were confined almost entirely to the class already mentioned. The great mass of the people of India are too much occupied with the task of providing themselves with their daily bread to take any interest in general politics.

The appeal of Mr. Channing Arnold, editor and proprietor of the Burma Critic, from his conviction by the Chief Court of Lower Burma in 1912 was dismissed on April 7 by the Judicial Committee of the Privy Council (A.R., 1912, p. 403). Their Lordships were of opinion that there was no misdirection on any point of law in the Judge's charge and that the jury had sufficient evidence to justify their findings on the question of fact.

The expectation of Germany that the entrance of Turkey into a war with a great Power in Europe would be the signal for a revolutionary outbreak in India was completely falsified. Instead of an outbreak of disloyalty there was one of fervent loyalty. Throughout the whole country from all races and all classes there came professions of attachment to the Government and offers of support of every kind (p. [200]). At the commencement of the war the Indian Government was able to send to Europe two complete Divisions of British and Indian troops, and these were followed a little later by the despatch of a third Division. This sending of Indian troops to fight side by side with their British comrades in a great European War aroused enthusiasm not only in the Indian Army, but also in the country generally.

The second expectation of Germany that, when they had succeeded in dragging Turkey into the war as their ally, there would be an outbreak of religious fanaticism throughout the world of Islam in general and of India in particular, was even more ill-founded than their expectation of a general Indian revolt. As soon as it was clear that Turkey was joining Germany the Viceroy (Oct. 31) issued a note pointing out the true facts of the case, how no interests of Islam were involved, and how completely England, France, and Russia had assured Turkey that, if she maintained her neutrality, her independence and integrity would be upheld at the close of the war. The truth of this was at once apparent to all educated Mohamedans; they knew well not only that no interests of Islam were threatened, but also that the Sultan himself was not a free agent. The Government of Turkey was really in the hands of the Young Turks, men hated and despised by all true believers, and who were truly described by Mr. Asquith in the House of Commons as possessing all the vices and none of the virtues of the old Turkish official class. The ruling Mohamedan Chiefs, from the Nizam to those of the Protected Malay States, issued proclamations pointing out to their subjects the true facts, and enjoining loyalty to the British Government as a thing required by the precepts of their religion and by their own true interests. Similar action was taken by all the important Mohamedan associations, and by leading Mohamedan gentlemen, including the Agha Khan.

The first act of any importance in the war between England and Turkey east of Suez was a visit by H.M.S. Minerva to Akaba, a fortified town at the head of the gulf of that name, where the Turks were collecting troops and supplies for an expedition against Egypt. The town was occupied, the fortifications were destroyed, and the Turkish force captured or dispersed with little loss.

A more serious operation was carried out in November by an expeditionary force both naval and military sent from India to the head of the Persian Gulf. The Turkish fort at Fao, on the right bank of the Shatt-el-Arab, was silenced on November 8, and after minor successes on the 11th and 15th, a decisive battle was fought on the 17th. The Turkish troops, some 4,000 in number, were found in an entrenched position which could only be attacked by an advance in the open. This was made and the position captured with some guns and a large supply of ammunition and stores. The British loss was five officers killed and fifteen wounded—of the rank and file the killed were thirty-five and the wounded about 300. The Turkish troops were completely routed and made no attempt to defend Basra, which was entered by the British on November 22. The whole Delta of the Euphrates and Tigris, which join about seventy miles from the coast and form a single stream known as the Shatt-el-Arab, was occupied and may prove a position of great value for further operations.

On November 10 great rejoicing was caused in Calcutta and in all the seaports of India by the receipt of the news that the German cruiser Emden had at last been caught in one of the islands of the South Pacific, and had been sunk after a sharp engagement by H.M.S. Sydney of the Australian Navy. Besides her visit to Madras, where she set the oil tanks on fire by her shells and did other damage, the Emden had been for a considerable time the pest of the Indian Ocean, and the value of the merchant ships and cargoes she had destroyed was estimated at over 2,000,000l. sterling.

VI. NATIVE STATES.

Nowhere was the general loyalty evoked by the war manifested more strongly than in the Native States. One and all came forward with contributions of men and money to the extent of their ability and even beyond it. In addition to this many members of the ruling families gave their personal service. To enumerate in detail the part played by the several States would make a record greater than the "Catalogue of Ships" in Homer.

VII. TIBET.

The Conference of Tibetan and Chinese delegates under the presidency of Sir H. McMahon, Foreign Secretary to the Government of India, concluded its sittings at Delhi, but the result has not yet been made known. The usual rumours of conflict between Chinese and Tibetan troops on the Eastern Frontier were repeated at various times during the year, but no importance was attached to them.

The Dalai Lama showed in many ways a greater desire for friendly relations with the British Government, and it was reported that on the outbreak of the war in Europe he offered to raise a force of 1,000 Tibetans to assist the Allies. Much useful survey work and exploration was carried out in the unknown country to the north of Assam and the north-east of Burma, and this will enable the Government of India to lay down a natural boundary line in those regions when the question is ripe for settlement. It had been decided to extend administrative control over a part of the tribal area in North-East Burma, and the new district of Patas had been peacefully established.

Charles A. Roe.

CHAPTER VI.
THE FAR EAST.

I. JAPAN.

The opening of the year 1914 was attended by many disasters. In Hokkaido and the North-East Provinces of Hondo owing to the failure of the rice crop of 1913, famine existed on a scale which was reported by missionary associations to demand all the assistance that could possibly be given. The Government made appropriations amounting to 830,000l. towards the relief of the sufferers, who were unofficially stated to number some 9,000,000 persons, and while its attention was being given in this quarter of the Empire, a calamity of a most alarming nature occurred in the south-east.

On 9 and 10 January an eruption of the volcano of Sakurashima, an island in Kagoshima Bay in Kiushiu, took place. The island was soon aflame, nearly half the houses were burnt and the inhabitants fled as best they could to Kagoshima. Streams of lava and dense bodies of ashes poured into the sea and over the island. The Japanese Government was prompt in rendering assistance. Two squadrons were at once despatched to the spot and measures were organised for the relief of the sufferers. The number of deaths which took place was not so great as might have been expected, but the devastation caused was such that over 10,000 persons were forced to emigrate. Apart from the assistance given by the Government a relief fund of over 50,000l. was raised by Japanese. Further disturbances were feared but nothing on a large scale took place, though the field of disturbance extended to Akita in Hondo.

Following on these great natural and physical disasters there occurred on April 9 the death of the Empress Dowager, a calamity felt to be as much of a national nature as the others. Preparations for the forthcoming Coronation were at once cancelled and the country joined in genuine mourning for the lady who had held so high a place in their affections and who had as Empress exhibited sympathy with the nation in all its joys and troubles. The unfailing dignity and tact shown by the Empress in the novel circumstances arising out of the introduction of a Western atmosphere into her Court had won her also an admiration abroad intensified by her grace and sympathy.

While suffering under these misfortunes, the nation was at the same time burdened with a scandal arising out of a contract for the battleship Kongo. Proofs of bribes given by the firm of Siemens & Schuckert were produced in the course of a long trial which included the representatives of that firm as well as other foreigners and Japanese of high standing in naval departments. Indignation meetings were held in Tokyo and a vote of no confidence in the Government which was moved in the House was lost only by 205 to 163 votes. As a result of the vote, the mob outside tried to break down the gates of the Houses of Parliament, and order was restored only by a display of military force.

The trial of the persons accused extended over two months. Admirals Fujii and Matsuo were severally sentenced to four and a half and two years' imprisonment, the managing and three other directors of the Mitsui Bussan Kaisha received sentences varying from two years to three months' imprisonment, Reuter's Agent, Pooley, was sentenced to three years, Siemens' manager, Herrmann, and other Japanese and foreigners to minor terms. How bitterly the scandal was felt was shown not only by the popular outcry, but also by the attempted suicide of Vice-Admiral Yamamouchi and the surrender by the Mitsui Bussan Kaisha of 75,000l. received illegally as commission on the Kongo and the devotion of that sum to charitable works.

The Government had been seriously affected by the disclosures attending the discovery of this scandal in the early part of the year, and the Budget introduced in January failed in consequence to receive necessary support. Under the Budget Revenue and Expenditure, ordinary and extraordinary, balanced at yen 641,000,000, and a naval programme entailing an expenditure of 16,000,000l., spread over seven years, was provided. Of the revenue yen 75,000,000 was furnished from a surplus in 1912-13, and economies effected by administrative reform in 1913-14. A reduction in taxation to the extent of yen 10,200,000 was also granted. But the Budget met with no favour in either House. In the Lower House an amendment was passed involving a reduction of yen 18,000,000, and in the House of Peers the Naval Vote was further reduced by yen 40,000,000. This action was followed by a joint Conference of ten members of each House, in which the Peers' reduction was rejected by one vote. Parliament was prorogued three days later (March 23) and the Ministry resigned.

Great difficulty was experienced in forming a new Cabinet. Prince Tokugawa, the head of the old Shogunate, was the first to be asked, but he declined the task. Viscount Kiyoura then attempted to form a Ministry, but failed. Finally Count Okuma, in spite of his age, seventy-six, accepted office and appointed a Ministry in which Baron Kato was Minister of Foreign Affairs, while Admiral Yashiro and General Oka took over the Admiralty and War Offices.

In June the Naval Budget passed the House of Peers with an additional appropriation of 600,000l. passed by the Lower House to cover ten years' expenditure on ships under construction.

Thus, to Germany's misfortune, all the difficulties and disasters of the year had been mastered and overcome in Japan when Germany declared war upon Great Britain, and when applied to by her ally for assistance in protecting her trade in the East, Japan loyally responded to the request. But the existence of Germany's naval base at Kiao-chou in Shantung made protection impossible until this base was abandoned. Accordingly on August 17 an ultimatum was issued by Japan to Germany, demanding the withdrawal of her fleet from the Far East and the surrender of Kiao-chou, and an answer was requested before noon on August 23. The ultimatum was based on the importance of the preservation of peace—the reason assigned by Russia, France and Germany for requiring Japan to retrocede Liao-tung, after that Province had been ceded to her under the Treaty of Shimonoseki in 1895. Germany's pride permitted of no answer to this ultimatum, and the Kaiser telegraphed to Kiao-chou: "It would shame me more to surrender Kiao-chou to the Japanese than Berlin to the Russians."

On August 23 war was declared against Germany by the Emperor of Japan, and his Minister left Berlin. The war was popular in Japan as a war of revenge for the part played by Germany in 1895, and the arrest of Japanese in Germany and the insults offered to the Ambassador when leaving Berlin intensified the feeling. The blockade of Kiao-chou was announced on August 23 and in a special session of the Diet, opened on September 5, a war appropriation of yen 53,000,000 was unanimously voted.

An Austrian cruiser, the Kaiserin Elisabeth, chanced to be in Kiao-chou at the beginning of August and the Austrian Ambassador at Tokyo had proposed that she should be disarmed and interned at Shanghai, but on Japan's taking action against Germany he left Tokyo and the vessel was left to her fate.

The time which had been allowed to lapse before the declaration of war had given time for the German garrison in Peking and German reservists in China to come to Kiao-chou to strengthen the garrison there. Enormous sums of money had been spent on the defences, and the capture of the place was generally recognised as a difficult feat. The landing of the Japanese at Laoshan Bay was effected on September 2, but the British contingent, under General Barnardiston, did not land until September 23-24, and arrived at the front as the Japanese were finishing their first engagement on September 28. General Kamio, the Japanese Commander-in-Chief, began the bombardment of the fortress on October 31, after the exodus of non-combatants had been permitted. The bombardment lasted a week, during which several forts were silenced and captured, and on November 7 as the Japanese were preparing to rush the fortress, the white flag was run up. In the early stages of the siege there had been considerable waste of heavy ammunition by the besieged, but the early surrender of the place was a surprise to the besiegers. The force under General Kamio numbered 22,980 officers and men with 142 guns, while the British contingent consisted of 910 officers and men of the 2nd South Wales Borderers and 450 of the 36th Sikhs. The German force was estimated at 5,000 men, and over 4,000 were made prisoners. The escape of the German cruisers early in August had deprived the harbour of some of the defences which had been expected, but extensive mine-fields had been sown which interfered with the activity of the attacking fleets. The German vessels which remained in harbour, as well as the Austrian cruiser, had all been sunk before the surrender of the fortress.

The news of this success excited great enthusiasm in Japan and General Barnardiston, who visited Tokyo shortly afterwards, received high honours from the Emperor and city. Much consideration was shown towards the prisoners from Kiao-chou and much liberty was granted them in their movements.

The satisfaction of the country in the feat performed by her army did not, however, prevent severe criticism of the new Budget in the Diet which was opened on December 7. Under the Budget provision was made for an expenditure of yen 556,000,000, and a decrease in revenue of yen 81,000,000 was forecast. No special provision was made for war expenditure, as it was intended to meet this from accumulated surplus of previous years under authority which would be asked for when required. A specially obnoxious clause provided for the increase of the Army by two divisions, a project which had already occasioned the fall of several Ministries, and which now in a division on December 24 in Budget Committee led to the defeat of the Government by 213 votes to 148. The Diet was dissolved the next day.

Gloomy as had been the scenes which ushered in 1914, the year closed with a record of achievements of which the nation might well be proud. Her enemy Germany had been driven from the fortified position which she had prepared in Shantung, the German railroad from Kiao-chou to the provincial capital was in Japanese hands, and obligations towards her ally, Great Britain, had been nobly fulfilled. Not only had British trade in the China Seas received such protection as to enable it, after a short interval, to be carried on without fear of molestation, but in the Pacific work had been done which greatly strengthened Great Britain. The Marshall Islands and some others in German possession had been seized and handed over to the Australian Commonwealth; and the strength of the Japanese fleet had assisted towards the safe convoy of Australian troops and probably also towards the rounding up of the German squadron off the Falkland Islands and its destruction there.

Those countries which had long harboured suspicion of Japan's action had to acknowledge the disinterestedness of her conduct. Her retention of Kiao-chou was the only point on which attacks were still made, ignoring the fact that Japan's offer in August to surrender the port to China after the war was conditional on Germany's acceptance of the Japanese ultimatum.

II. CHINA.

In October, 1913, Yuan Shih-kai had been elected President of the Republic by the National Assembly. In November of the same year both Houses decided to suspend their meetings, as a quorum could not be obtained, owing to the action of the Government which had declared void the seats held by the Kuo-min-tang party, in consequence of their continuous opposition to all Government measures. The action of the President in dissolving Parliament (Jan. 11) created no new situation, but somewhat strengthened his position. At the same time it was felt that some kind of a quasi-representative body was needed, not only to temper criticism of the Republic as such, but also to furnish the President with information. In November a Central Administrative Council had been called into existence by Yuan Shih-kai, and though its birth had been greeted with contempt owing to its lack of legislative powers, this or other similar bodies under different names with slightly altered functions usurped the place of a representative Council, not without advantage to the country, throughout the course of 1914.

Yuan Shih-kai, after cancelling the draft Constitution drawn up by the Committee appointed by the National Assembly, commissioned in January a new body of sixty members to draft a fresh Constitution. This appeared in March. Under it, the future National Assembly was to consist of one Chamber, styled Li Fa Yuan; the Cabinet was to be abolished and a Secretary of State, on the model of the United States of America, was to take the place of the Premier, under the President as the supreme head of the State. Cabinet Ministers were to be converted into Heads of Departments and an Advisory Board was to be established. Some of these recommendations were at once acted upon, and in May an Advisory Council of seventy members, including the Vice-President, was appointed. But it was not until December that the scheme for the formation of the Li Fa Yuan, now spoken of as the Legislative Council, was finally adopted. Under it the Council consists of 275 members, of whom those representing the Provinces and Peking will be elected by Electoral Colleges, elected by qualified electors, but the remainder will be elected by the Central Electoral College direct. The session of the Assembly will extend from September 1 to December 31, unless the President sees fit to order an extension of two months, and members will hold their seats for four years.

The President, when promulgating the law for the constitution of the Assembly, acknowledged that it would not be strictly representative nor possessed of full powers, but he considered that the condition of China was not such as yet to warrant the grant of such representation or powers.

An act of the President's which excited more attention abroad was his announcement that the worship of Heaven and the honours paid to Confucius would be continued as of old time, and that he himself would represent the nation in the worship of Heaven and wear the robes of ceremony in use by the Dukes of Chou. Some of the foreign missionary bodies seemed to regard this as a cruel answer to the prayers which they had offered at Yuan Shih-kai's instance for the welfare of China.

In January the town of Liu-an Chou in An Hui was sacked by a body of brigands, who attacked the French missionary station, murdering Père Rich and making prisoners of two other priests whom they afterwards released. The success which attended this exploit encouraged further attempts, and the line which separates successful brigandage from rebellion in China soon became difficult to distinguish. Their leader Pai Lang Chai, known in Europe as White Wolf, took his followers next to Lao-ho-kou, an important mart in Hupeh, pillaged the place—again a missionary was murdered, M. Froyland, a Norwegian—and struck north into Shensi, gathering many adherents and looting Ching-tzu-kuan on the way. In Shensi he was joined by some leaders of the late revolution. He then plundered Lung-chü-chai, in the south-east of the Province, and soon afterwards fought an engagement with troops at Shang-chou where he set the city on fire. Panic followed, and he arrived soon after within a few miles of Si-an Fu, the capital. Some towns in the north of Honan were the next to receive his attention, but a concentration of troops from the north-west of Szechuen forced him to retire into Kan-su. The seventh Army Division under General Lu Chien-chang was then ordered to proceed against him, and he suffered some defeats at the hands of Mohammedan troops which drove him back into Shensi with a small number of followers, and in September the rebellion was finally crushed. The success which attended his arms is said to have attracted much support from revolutionary emigrés in Japan, and among them of Sun Yat-sen, who saw in this movement an opportunity of weakening, if not of overthrowing, the President.

But Yuan Shih-kai showed himself able to weather this storm as well as the financial difficulties which arose out of the war in Europe and the consequent attack on Kiao-chou. Following the example of Europe and Japan, China declared a moratorium, and as foreign loans then under contemplation became impossible made arrangements for domestic loans of 2,000,000l. at 6 per cent. The issue of the loan was attended by very fair success, and, after a short interval of panic, trade resumed its normal course, except that exports were greatly interfered with by the adverse rate of exchange, a circumstance which seriously affected the payments by Government of interest on existing foreign loans.

The conduct of the campaign by Japan against Kiao-chou occasioned strong protests by Germany against the landing of troops in Shantung outside the Kiao-chou zone, and also against the seizure of the German railroad in the Province. The protests were met by declarations that China was acting on the same lines as in the Russo-Japanese War, and that she was powerless to prevent Japan's action. It was also pointed out that Germany had in a measure created the situation through her unauthorised fortification of the port.

An interpellation by the State Council on the subject of Japan's violation of neutrality and the countenance which had been given to this by Great Britain was answered by a statement that protests had been made to the two Powers concerned.

The financial position of the country continues to remain a problem which taxes the brains of those who desire to ascertain on what resources China can rely for further development. An able report by the Maritime Customs on the foreign trade of 1913 places its total at 146,000,000l., and admits that not only is there a heavy trade balance against China, but that an annual deficit of 21,000,000l. is totally unaccounted for, even after taking into consideration remittances of 7,000,000l. from Chinese abroad. An adverse balance has been a constant feature of her foreign trade for years past, but does not seem to affect China's power of purchase to the extent that would seem natural. In the national revenue and expenditure an adverse balance also appears; in 1913-14 this amounted to $84,940,000; but the State continues to run its system of government, even when, as in 1914, loans which were under contemplation with foreign countries were abruptly cancelled owing to the European war. In some respects 1914, in spite of a falling off in Maritime Customs of 1,400,000l., showed an improvement, for remittances from the Provinces to Peking set in pretty steadily, and the Salt Tax, as newly organised by Sir R. Dane, gave a return which exceeded all estimates made in 1913 and surpassed the Customs Revenue. Another satisfactory feature was the success which attended the internal loan of 2,000,000l. at 6 per cent. The exact amount of the loan which was taken up is unknown, but the fact remains that the country showed sufficient confidence in the stability of the Government to allow this measure to meet the needs of the hour. Railway receipts also were good, and the obligations of the Government abroad have been met.

But revolutionaries have not ceased to do their best to weaken the Government, and after "White Wolf's" death plots were discovered in the Yangtse Valley, at Peking and at Canton, which had as their object the death of the President and his Ministers, and the subversion of the Government. The restoration of the Manchu dynasty was aimed at by one of these movements.

CHAPTER VII.
AFRICA (WITH MALTA).

I. SOUTH AFRICA.

A Boer rebellion instigated by Germany is the outstanding fact of the year in the South African Union. It was, however, confined to a section of the rural population, and, thanks to the loyalty and energy of General Botha and his supporters, was suppressed by the end of December. Authority for the statement that the origin of the revolt is to be sought in German intrigue is to be found in the proclamation of martial law throughout the Union, though this was not issued until October 12. The first overt act of treachery was known on the 8th, when Lieutenant-Colonel S. G. Maritz, commanding the force in the North-West of the Cape Province, being suspected by the Government, was relieved of his command and ordered by his successor, Colonel Conraad Britz, to come in and report to him. He replied, according to Lord Buxton's despatch to the Secretary of State, that "all he wanted was his discharge and Colonel Britz must come himself and take over his command." Colonel Britz sent Major Ben Bouwer to take charge. Maritz made him and his companions prisoners, but then sent him back alone with an ultimatum to the effect that unless the Union Government "guaranteed to him that before 11 o'clock on Sunday morning, October 11, they would allow Generals Hertzog, De Wet, Beyers, Kemp, and Muller to meet him where he was, in order that he might receive instructions from them, he would forthwith make an attack on Colonel Britz's forces and proceed further to invade the Union." Major Bouwer reported that Maritz had German guns and a German force with his command, that he held the rank of General commanding the enemy troops, and that he had sent as prisoners into German South-West Africa all of the Union officers and men who had refused to betray their oath. Major Bouwer had also seen an agreement between Maritz and the Governor of German South-West Africa "guaranteeing the independence of the Union as a Republic, ceding Walfisch Bay and certain other portions of the Union to the Germans, and undertaking that the Germans would only invade the Union on the invitation of Maritz." He had also been shown German telegrams and helio messages dating from the beginning of September, and Maritz boasted that he had ample guns, ammunition and money from the Germans and that he would over-run South Africa. On these facts, and presumably on others not disclosed by the Government, the proclamation justified the imposition of martial law under three heads: (1) "a widespread secret propaganda" by Germany "to seduce citizens of the Union and the officers and members of the Defence forces of the Union, from their allegiance and to cause rebellion and civil war"; (2) that Maritz and a portion of his forces "had shamefully and traitorously gone over to the enemy" and with the enemy forces "had invaded the northern portions of Cape Province"; and (3) there was "grave reason to think that the Government of German South-West Africa had, through its numerous spies and agents, communicated with and corrupted also other citizens of the Union under the false and treacherous pretext of favouring the establishment of a Republic in South Africa." Therefore it was "necessary to take effective measures to protect and defend the interests of the Union and its loyal and law-abiding citizens against these insidious and treacherous attacks from within and without and to that end to declare martial law."

That being the evidence of a German plot to seduce the Boers from their allegiance, the optimistic news from South Africa between August 4 and October 12 was discounted by events. Scanty as the news was it gave the impression, at least until mid-September, that though the Hertzogite party in Parliament opposed military attack upon the German territory, Dutch patriotism was sound. The line taken by General Hertzog was that the Union should commit no act of aggression; and there were some supporters of General Botha who had to be won over by their leader to the view that a neutral attitude was impossible. The Government had at once made up their minds to act with the Imperial authorities. In reply to the King's Message to the Dominions they declared that "the Message had been received with great enthusiasm and deep loyalty in all parts of the Union" and that His Majesty's subjects there were "firmly resolved to fulfil their sacred duty of assisting with all resources at their disposal to bring the terrible war which has been forced on His Majesty to a speedy and successful conclusion." But this resolve was not universal in Parliament or in the country. The sacred duty was disputed by the Hertzogites, and General Botha's lead was apparently accepted with reluctance by some of those who were opposed on other grounds to General Hertzog. It seems to have been assumed that as the Germans had not then attacked, non-intervention was the preferable course. This issue was, however, brought to a head on September 12 by a declaration by General Botha in the Senate that South Africa, being part of the Empire, could not remain neutral, and that the Government had therefore decided to accede to the request of the Imperial authorities to occupy for strategic reasons certain parts of German West Africa. "The Government had come to this decision (according to The Times report) because they wished to preserve the name and reputation of South Africa for uprightness. They were under the British flag and had all the freedom they could have.... Let them assume their responsibilities in the fullest sense of the word. It had been stated that the reports of the German invasion of the Union were baseless, but he declared with authority that the Union had been invaded. Their English-speaking friends must not expect quite the same enthusiasm amongst the Dutch-speaking section about the war as among themselves. There was not, however, the slightest disloyalty, and even among those who perhaps were least enthusiastic, there was no idea of preferring to live under the German flag." In saying that "there was not the slightest disloyalty" General Botha was probably affecting to ignore reports to the contrary and refraining from attaching any sinister significance to the parliamentary action of the Hertzogites, or to those among his own supporters who deemed it impolitic and unnecessary to take the offensive against the Germans. On September 15 General Beyers, Commandant General of the Union Defence Forces, resigned his post. In a letter to General Smuts, the Minister of Defence, he complained that Parliament should by resolutions have confirmed the decision of the Government "to conquer German South-West Africa without any provocation towards the Union," and asserted that the majority of the Dutch-speaking people decidedly disapproved of crossing that frontier. He cited the resignations of three English Ministers (p. [173]) as evidence that there was a minority in England not convinced of the righteousness of the war with Germany: "It was said that war was being waged against the barbarity of the Germans. He had forgiven, but not forgotten, all the barbarities perpetrated during the South African War.... At this critical moment it was made known in Parliament that their Government was granted a loan of 7,000,000l. by the British Government. This was very significant."

In accepting his resignation General Smuts pointed out that the plan of operations decided upon had been recommended by General Beyers, and the officers who were to carry it out were appointed on his advice. It was well understood between them that he (General Beyers) was to take chief command in German South-West Africa. Yet he (General Smuts) never received the impression that resignation was intended, though he knew General Beyers entertained objections against the war. He rebuked General Beyers for his "bitter attack" on Great Britain, and for having first communicated his resignation in a letter of political argument to the Press. "The attack was not only entirely baseless but the more unjustifiable coming as it does in the midst of a great war from the Commandant General of one of the British Dominions. Your reference to barbarous acts during the South African War ... can only be calculated to sow hatred and division among the people of South Africa." After further castigation of General Beyers, General Smuts characterised the insinuation about the loan of 7,000,000l. to the Union Government "as of such a despicable nature" that it needed no comment. "It only shows to what extent your mind has been obscured by political bias." General Smuts could not conceive anything more fatal and humiliating for the Dutch-speaking people than a policy of lip-loyalty in fair weather and of neutrality and pro-German sentiment in days of storm and stress. He was convinced that the people would support the Government in carrying out the mandate of Parliament, and would fulfil their duty to South Africa and to the Empire.

By that time, September 15, a strong German force had advanced on Raman's Drift (on the Orange River) and had garrisoned a blockhouse commanding the drift. Thus the report of an invasion early in August was confirmed. A force of South African Mounted Rifles under Colonel Dawson crossed the waterless region and captured the blockhouse. On the next day the Germans, who were in force in the Uppington Kopjes within the British side, attacked the Union frontier post at Nakob and overpowered the small garrison. Swakopmund, on Walfisch Bay, had been seized, without resistance, by Union forces coming by steamer, and on the 19th Lüderitzbucht, midway between Walfisch Bay and Capetown, had also been surrendered to the Union, after the enemy had destroyed the wireless station there. The Union successes on the coast were counterbalanced by German captures of frontier posts. General Botha decided to take the field himself against the enemy and made a call for volunteers. The response was reported to be all that could be desired, particularly in the district where General Beyers had influence; but, in the language of Lord Buxton to the Secretary of State, "ever since the resignation" of General Beyers "there have been indications that something was wrong with the forces on the north-west of Cape Province" under the command of Lieutenant-Colonel Maritz. What was wrong has been told in the opening paragraph; whether General Beyers was a party to the conduct of Maritz at this time may be judged by the use of his name by Maritz and by the circumstances of his resignation. Of Maritz it was reported that, after serving in the South African War, he had taken service with the Germans, and had fought for them against the Herreros. Returning to the Union he was said to have made himself conspicuous by ostentatious dislike of the Germans. On the outbreak of war he was given a commando of irregulars on the strength of his knowledge of the frontier. He was believed to have 500 men with him near Uppington. One effect of the rebellion was to rally opinion to the support of General Botha and to demonstrate that the bulk of the Dutch population had little sympathy with Maritz. Recruiting was vigorously stimulated. On the other hand there was evidence of a seditious propaganda among the backveld Boers, notwithstanding very drastic regulations under the proclamation of martial law, which included in the definition of sedition opposition to the policy of hostilities against the enemy. The rebellion appeared to have profoundly stirred the people. On the native population it had no discernible and immediate effects. As Minister for Native Affairs General Botha sent a message urging on them prompt obedience and cheerful submission to the restrictions of martial law.

According to a correspondent of the Cape Times, who had been travelling in German West Africa just before the war, the Germans had a force of 10,000 mounted infantry and artillery, many machine guns and sixty-six gun batteries. They had also a Camel Corps of 500 for use in the desert region. The correspondent saw 192 guns at Keetmanshoop and described the country as being dotted with police posts, with two guns in each and manned by artillerymen. Railways and roads had been made to facilitate the invasion of the Union and this account of the enemy suggested long and costly preparation for war.

Obviously the military situation was difficult enough for General Botha without the complication of internal rebellion. Thus far it seemed, on such news as the censorship permitted to come through, that Maritz stood alone. On October 26 it was announced that he had been completely defeated at Kakamas, was wounded, and had fled into German territory. Colonel Britz sent to Pretoria an agreement which Maritz had asked him to sign. It was a pact between the Governor of German South-West Africa, as representing the Emperor, and traitors prepared to declare the independence of South Africa. The German Emperor undertook to take all possible measures to get the independence of any State or States of the Union recognised under the terms of peace. On the other side, the middle of the Orange River was to be the boundary between German South-West Africa and the Cape Province. Maritz had himself entered into this agreement. It was reported that before the engagement of the 26th, Maritz, being hard pressed, had offered to surrender on condition of a free pardon for himself and his followers, the Germans with him to be sent across the border. No reply was made. On the 27th many of Maritz's followers surrendered.

At the moment of the collapse of his commando rebellion broke out in the Northern Orange Free State and in the Western Transvaal. On October 28 the Union Government announced "with deep regret" that "at the instigation of certain prominent individuals," burghers in these districts had been "misguided enough to defy the authority of the Government and to make preparations for armed resistance and rebellion." Armed rebellious commandoes, under the authority of General Christian de Wet in the Orange Free State, and of General Beyers in the Western Transvaal, were in existence. The town of Heilbron had been seized and the Government officials imprisoned. A train had been stopped at Reitz and armed citizens of the Defence force seized and disarmed. "The very great majority of the citizens in every province are thoroughly loyal," said the Government statement, "and detest the very idea of rebellion." The Government had been aware of the rebel preparations and had "spared no efforts to preserve the peace without bloodshed." They called upon all loyal citizens to be on the alert and give the Government every assistance. "Citizens who have been, for some reason or other, guilty of disobedience under the Defence Act"—continued the announcement—"need not fear any action against them on that ground on the part of the Government so long as they remain quietly at home and abstain from acts of violence or hostility against the authority of the Government of the Union." The former Commandant-General of the Union forces had thus taken the field, in concert with General Christian de Wet, the Commander-in-Chief of the Orange Free State forces during the three years' war. De Wet was one of the signatories to the peace of Vereeniging, and had since held Ministerial office. Action had preceded the issue of the Government statement, for there was published on the 29th a telegram from Lord Buxton to the effect that General Botha had on the 27th searched out Beyers' commando and "driven them in headlong pursuit the whole of the day, capturing eighty of them fully armed." The engagement took place near Rustenburg and was a flight, not a battle. "General" Kemp—one of the names mentioned by Maritz—escaped into the Lichtenburg district, where there appear to have been many rebels under a Boer named Claussen; but the gathering here was put to flight by a force under Colonel Alberts. In the Calvinia district also there were bodies of rebels, who, however, made no serious fight against Colonel van der Venter's forces. General Botha followed the rebel commandoes to Zoutspansdrift and they were there again scattered. Early in November the Minister of Defence stated that the Maritz rebellion was over and in the Transvaal the movement was then quite insignificant. Only in the northern district of the Free State had the rebellion "assumed certain dimensions." On October 29 De Wet had entered Vrede with a body of rebels and addressed the townspeople in front of the Dutch Church. He spoke of "the miserable, pestilential English" and described the attack on German South-West Africa as a dastardly act of robbery. "Some of my friends," he was reported to have said, "have advised me to wait a little longer until England received a bigger knock, but it is beneath me and my people to kick a dead dog." He ordered the commandeering of supplies and threatened obstructives with the sjambok. At another place he was reported as saying: "I am going through to Maritz, where we will receive arms and ammunition, and from there we are going through to Pretoria to pull down the British flag and proclaim a free South African Republic." On November 12 it was announced that General Botha had got into touch with De Wet's forces and soundly defeated them. The rebels numbered 2,000. There were losses on both sides, but the rebels did not make a serious stand. They lost 255 prisoners here, among them Commandant Muller—also named in Maritz's message—and most of their transport.

The Government issued a proclamation calling upon all rebels to surrender voluntarily, and saying that all persons who did so would not be criminally prosecuted but allowed to return to their homes on condition that they took no further part in rebellion, and gave no information or assistance to rebels, and did and said nothing likely to disturb the peace. But the amnesty would not apply to those who had violated the rules of civilised warfare. All rebels who did not surrender forthwith would be liable to be dealt with according to the rigour of the law. The notification was signed by General Botha and was an appeal to good sense rather than a menace. On November 8 a rebel commando believed to be under the leadership of an ex-Major on the Union Defence Staff, was heavily defeated some thirty miles west of Warmbaths, the rebels losing 120 killed and wounded. At Winburg (Nov. 9) De Wet is alleged to have behaved with brutality towards the Mayor. He had lost his son in a fight a few days earlier and seemed to be out of control. The rebels looted the chief store. His commando numbered about 2,000, and were frequently harried by the Union forces. Meanwhile Beyers was severely handled to the south of the Vaal River, east of Bloemhof, and in an engagement on December 7 lost 364 prisoners, besides killed and wounded. It is impossible to keep count of the commandoes; the cables during November are too scanty and confusing. The rebel forces were daily suffering attrition by captures and surrenders and minor fighting. On December 2 Colonel Britz reported that he had captured De Wet at a farm at Wartenburg, 100 miles east of Mafeking. De Wet had crossed the Vaal as a fugitive on November 21, but had got together a small commando. Though pursued by motor cars, he managed to escape hither and thither for several days, until his commando was broken up and he was run to earth by Colonel Britz. There were four others in the farm where he took refuge. Finding themselves surrounded they surrendered. De Wet was taken to Pretoria. With his capture the Free State rebellion collapsed. The operations directed by General Botha had brought in over 800 prisoners.

In the Transvaal Beyers was caught and his force driven towards the Vaal at Greyling (Dec. 7). Beyers and others tried to cross the Vaal, and were fired on. Beyers was seen to fall from his horse, but managed to grasp another by the tail. He was next seen drifting down stream, shouting for help. His body was recovered. Lord Buxton reported that the rebellion was everywhere practically at an end. A few small bodies might continue to give a little trouble. De Wet, Muller, Wessel Wessels, as well as other leaders (including three members of the Union Parliament and members of the Provincial Councils) had been captured or had surrendered. Beyers was dead and Maritz and Kemp—the latter erroneously reported captured—had joined the Germans. About 7,000 rebels had been captured or had surrendered—an official figure which for the first time gave a clue to the extent of the rebel movement. General Botha issued a statement on December 9. He said that "the speedy and successful termination of what promised at one time to be a formidable and widespread rebellion, led by some of the best known South Africans," was due to the energy and ceaseless efforts of the forces in the fields. He then thanked them on behalf of the Government and people of South Africa. "Our sacrifices in blood, treasure and losses of population have been considerable, but I believe they are not out of proportion to the great results already achieved or which will accrue to South Africa in coming years. For this and much more let us be reverently thankful to Providence, which has once more guided our country through the gravest perils, and let that spirit of gratitude drive from our minds all bitterness caused by the wrongs suffered and the loss and anguish which has been caused by this senseless rebellion." He spoke of the rebellion as "a quarrel in our own South African household," and urged the cultivation of a spirit of tolerance and "merciful oblivion of the errors and misdeeds of those misguided people, many of whom took up arms against the State without any criminal intention and without any clear perception of the consequences of their action. While just and fair punishment should be meted out, let us also remember that now more than ever it is for the people of South Africa to practise the wise policy of forgive and forget." Their next duty was to deal with the German danger and make it impossible for German South-West Africa to be again used as a base from which to threaten the peace and liberties of the Union. "I hope and trust the people will deal with this danger as energetically as they have done with the internal rebellion."

During the rebellion little information had been forthcoming about the situation on the frontier. Presumably the Union forces had been sufficiently engaged in suppressing the rebellion, the extent and gravity of which are measurable by General Botha's language when the peril had been surmounted. What activity the Germans displayed, if any, in co-operation with the rebels was not disclosed by the authorities. The position of affairs as it presented itself to General Botha was thus described by him in an interview given on December 17: "In suppressing the rebellion the Government have had the most hearty co-operation of both races. Let us have the same co-operation in German South-West Africa. The undertaking before us is difficult, but if we all do our duty it will be carried to a successful conclusion. Now that German territory has become a refuge for Maritz and the other rebels it is more than ever necessary that we should persist in our operations there. We cannot tolerate the existence of a nest of outlaws on our frontier, a menace to the peace of the Union." In that interview General Botha paid a warm tribute to General Smuts, whose "brilliant intellect, calm judgment, amazing energy and undaunted courage had been assets of inestimable value to the Union in her hour of trial." His own services to the Union and to the Empire cannot fitly be appraised until events have fallen into perspective; but the language applied to General Smuts, generous and eloquent as it is, would be inadequate as an expression of gratitude for the labours of General Botha. To review the events of the rebellion is to wonder whether South Africa would not temporarily have ceased to be a British Dominion in 1914 had not General Botha given a strong lead in loyalty and policy, and had the frustration of the German plot fallen to a man less influential than himself with the Dutch-speaking people or to one less skilful in military generalship.

The total casualties in the Union Defence Forces up to December 23 were 755—334 during the fighting with rebels and 369 from the fighting with the Germans. The killed in the rebel campaign numbered seventy-eight and in the German engagements sixteen. The rebels killed in action numbered 170. The rounding up of rebel parties was still going on. On December 30, however, it was reported that Maritz, with Kemp second in command, had successfully attacked a Union force, 480 strong, near Schuit Drift on the 22nd, and had compelled it, with its reinforcements, to retire with the loss of ninety prisoners, a maxim, 80,000 rounds of ammunition, an ambulance and twenty-six empty waggons. As Maritz's force was described as 800 rebels, with four field guns and four maxims, and as the Union force lost only one man killed and one wounded, though it offered "a vigorous resistance," the despatch was clearly incomplete. On December 31 the Government put in force the provisions of the Defence Act, empowering them to commandeer men for military service, and it was officially admitted that dependence on voluntary service was inadequate in view of the German menace.

The war and the rebellion have reduced other events of the South African Union to relative insignificance. But there are matters of permanent interest which cannot here be left aside; and first in importance is the renewal of the strife between white Labour and Capital, a strife which shook Johannesburg to its foundations in the summer of 1913 (A.R., 1913, p. 416 sq.). The superficial cause of the renewal in January was the dismissal of sixty men from the Government railways, men paid by the day and subject to twenty-four hours' notice of dismissal. The real question, however, was whether the Trades Federation should control such dismissals and the administration of the railways. The dismissals were due to a policy of retrenchment. Mr. Poutsma, the secretary of the Railwaymen's Union, failing to get satisfaction at the hands of Mr. Burton, the Minister for Railways, threatened a strike. The Railway Union resolved to strike and the Executive of the Federation of Trades called upon all unionists and non-unionists to support them. Much anxiety was felt in view of the previous riots, when Imperial troops had to be brought into Johannesburg and there was serious rioting and loss of life; but by this time the Union Defence Forces had been organised and when the plans of the strikers were put into operation on January 9 the Government were prepared for emergencies. Simultaneously with the stoppage of the railways they called up the Citizen Defence Force in certain areas and let it be known they would call out the entire force if needs be. They also arrested a number of labour leaders, including Mr. Poutsma, on charges of having used seditious language, and lodged them in jail. By the following day there were 60,000 burghers under arms. The Trades Federation threatened a general strike of all trades and ordered a ballot to be taken. The Government, through the Railway Minister, reiterated their refusal to reinstate the men and drop the policy of retrenchment. They attempted to run a partial service, with which the strikers interfered where it was possible. The trouble spread throughout the Union and was complicated by an outbreak of Basutos at Jagersfontein Mine, the cause being the death of a Basuto, the result, it was alleged, of a kick by a white man employed by the management. The dismissal of the man was demanded and refused. The Basutos broke out of the compound, which they wrecked, and caused a panic in the town. Troops were brought on the scene and in the fighting eleven Basutos were killed and thirty-six wounded. A Committee of Public Safety was set up in Johannesburg, and the Government took a very serious view of the situation. There was a two-thirds majority of the Federated Trades for a general strike, which was proclaimed on the 13th. The miners were to come out the following day. The Government at once proclaimed martial law and mobilised 20,000 men on the Rand. Trouble was apprehended in the native compounds. The town was full of troops. Ministers went about with armed guards. Business was suspended. The president and secretary of the Federation of Trades, with some 200 of their supporters, barricaded themselves in the Trades Hall and successfully resisted arrest. There was an affray outside the hall in which the police used bayonets. The Trades Hall was besieged by a force of burghers with machine guns, and means were taken to impress the besieged with the Government's determination to effect the arrest of the leaders. On a field gun being placed in position the secretary of the Federation appeared at a window and after protesting against the display of force offered an unconditional surrender. With the arrests thus accomplished the situation became less alarming and in a few days the strike collapsed. Normal industrial conditions were quickly resumed and the citizen force demobilised. On the 21st the general strike was formally declared "off." By this time there was scarcely a Labour leader anywhere in the Union who was not under arrest. Among those arrested was Mr. Cresswell, a member of Parliament, who was sentenced to a month's imprisonment and a fine of 20l. for publishing a pamphlet; but this sentence was remitted on the ground that the Government did not desire to deprive the Labour party of its spokesmen in Parliament in the coming discussions. On the 27th it was announced that the Government had decided to deport ten of the principal labour leaders, Mr. Watson, president of the federation, Mr. Poutsma, secretary of the Railway Men's Society, Messrs. Bain, Mason, Crawford, Waterson, Kendall, McKerrell, Livingstone and Morgan. The men were secretly conveyed to Natal and put on board a steamer—the Umgeni—which sailed forthwith for England (pp. 12, 24, 35). Application on behalf of the men was made to the courts but without result. The deportation had taken place and the restraining power of the courts forestalled. The illegality caused profound resentment in South Africa.

The South African Parliament was opened by Lord Gladstone on January 30. The Governor-General's inaugural speech dealt with the strike in cautious but yet definite language. The extension of the trouble to all trades "finally convinced my Ministers that the safety and well-being of the whole Union made the declaration of martial law imperative.... The measures taken and the effective display of force by the citizens of the Union happily succeeded in preventing any serious disturbance and in restoring order without bloodshed. Certain measures will be submitted to you in connexion with the action taken by my Ministers during the exceptional conditions to which I have referred." Nothing, however, was said of the deportations. On February 2 a Bill was introduced by General Smuts indemnifying the Government and its servants for all acts done under martial law and prohibiting the return of the deported persons. Sir Thomas Smartt, the leader of the Opposition, who had supported the Administration during the trouble, asked for an explanation of the Government's acts. Mr. Cresswell, the leader of the Labour party, condemned the deportations and accused the Government of a conspiracy with the capitalists to run the country in their own interests. A Ministerial statement was made on the second reading, which was moved by General Smuts. It occupied several hours in delivery. As to the first part it was an elaborate and rhetorical survey of the industrial troubles of the country and an indictment of the Labour party as "Syndicalists." General Smuts suggested that the natives on the Rand had been drawn into the movement. On one mine 1,500 assegais had been found. He made no attempt to dispute the illegality of the deportations. There had been three revolutionary attempts within six months, and after anxious consideration Ministers resolved to strike down by deportation ringleaders whose acts and speeches and associations showed they had committed themselves to a conspiracy against constituted order. Why not a trial? His reply to that was that the situation was novel and not less treasonable and perilous because the acts had not come within the law of treason. Having regard to the supreme interests of the State the Government "could not run the ordinary risks of the law courts." He acquitted Lord Gladstone of any responsibility for the deportations; the decision to deport was that of the Cabinet alone. At a later stage General Smuts issued a return of thirty-eight outrages during the January disturbances, in several instances dynamite and other explosives being used. The leader of the Opposition, while criticising the Government, declined the responsibility, seeing that deportation was accomplished, of giving a vote which would enable the deportees to return to the country. The debates were continued until February 24, when, after an all-night sitting, the second reading was carried by 95 votes to 11. Meanwhile the deportees had landed in England (p. [35]). After a hard fight in Committee the Indemnity Bill was passed.

Among other legislation passed were a Riotous Assemblies Act, an Act for the Protection of Workmen's Weekly Wages and an Industrial Dispute Act, setting up a system of conciliation. During the Session the Report was issued of the Commission on labour, wages and economic conditions in the Union. This document showed that the cost of living on the Rand was 40 per cent. higher than in the United States and 80 per cent. higher than anywhere in Europe; wages were put at 40 per cent. higher, than in the United States and 225 per cent. higher than in any European country. The Commission recommended the establishment of an Advisory Council to deal with native questions, and an Industrial Commission to administer labour legislation, the extension of which was advised. The Commission found that competition of skilled white workers with natives and Indians is negligible, and advised that barriers should not be placed in the way of non-white labour by the State. They concluded that the Government ought not to lay down a minimum subsistence wage and that employers should "recognise" trade unions. They advised legal protection for non-unionists and declared that strikes among the white workers had caused unrest among the natives. One effect of the deportations and the debates on the Indemnity Bill was to be seen in the stimulation of political activity among the Labour men, who gained a majority of one in the elections for the Transvaal Provincial Council.

At a Party Congress in January General Hertzog, who seceded with his followers from the National party, decided to form a new party. This was done. A general election is due in 1915. General Hertzog's position as a party leader was unassailable in the Orange Free State until the time of the war.

The Budget of the Union showed that the expenditure for 1913-14 was 16,481,000l. and the revenue 15,794,000l., a deficit of 687,000l. The Finance Minister said the funded debt on March 31, 1914, amounted to 117,671,000l., and the floating debt to 7,308,000l., against 105,856,000l. and 11,972,000l. respectively. On March 31, 1913, the total debt was 124,980,000l., as compared with 116,502,000l. at the time of the Union. He estimated the expenditure for 1914-15 at 16,668,000l., an increase of 187,000l. as compared with 1913-14, for which the service of the public debt and the provincial administrations were largely responsible. He estimated the revenue at 15,707,000l., excluding the Bewaarplaatsen, leaving a deficit of 961,000l. Half of the Bewaarplaatsen, however, would be available to meet this, and the actual deficit would be 711,000l. These estimates were made in April—before the war, when the finances of the Union were strengthened by a loan of 7,000,000l. from the Imperial Government. The Government policy of economy and retrenchment was checked by the January industrial troubles and later in the year by war and rebellion.

The Times Capetown correspondent reported on December 26 that Treasury figures indicated that the deficit at the end of the financial year 1915 would be between 2,500,000l. and 3,000,000l., apart from war expenditure. The deficit was mainly due to the stoppage of the diamond industry and the heavy fall in customs and other revenue. The cost of the war and the rebellion in November was over 1,000,000l., and the 2,000,000l. voted in September for operations against German South-West Africa had been exhausted by the end of that month.

The Indian grievances, which assumed dangerous proportions towards the end of 1913 and continued to be an embarrassment during the early months of 1914, were composed by the passing of a relief measure through the Union Parliament before the Prorogation in July. The Bill was founded on the recommendations of the Commission appointed in consequence of the strike disorders in Natal and the passive resistance movement under the leadership of Mr. Gandhi. At the outset the Commission met with Indian hostility, Mr. Gandhi taking the view that some of its members were partisans; but he modified this attitude when Lord Hardinge welcomed the appointment of the Commission and sent an Anglo-Indian of distinction, Sir Benjamin Robertson, to follow the proceedings in the interests of India. The Report advised the abolition of the 3l. licence and made recommendations on the marriage question and administrative matters. It created a favourable impression in India as well as in South Africa and the Act founded upon it was regarded by Mr. Gandhi as the Magna Carta of Indian liberty in South Africa. On leaving Africa in July he told the Indians that their difficulties were not over, but spoke of the settlement as "generous." He appealed to Europeans to take a humanitarian view of the Indian question and told the Indians that their future under the settlement depended on themselves. There was no further news, the war obliterating the subject.

In Rhodesia the elections to the Legislative Council in March resulted in the return of pro-Charter candidates. As the six non-elected members are appointed by the British South Africa Company the Council was thus pledged to the maintenance of the existing form of Government, subject to the action of the Imperial authorities, who had the right to review, on October 29, 1914, the administrative powers of the Company. The anti-Charterists were composed of groups in favour of responsible Government, or of Crown Colony Government as a step to that, or of inclusion in the South Africa Union, though this last expedient had few advocates. The groups combined on a "common platform," the chief feature of which was "to make an immediate and definite move in favour of responsible Government by urging the Imperial Government as an initial step to assume provisional control of the Executive, preliminary to arranging with the British South Africa Company the price to be paid for such public works and buildings as would be required, and granting a Constitution, in accordance with the wishes of the people." The pro-Charter candidates received 3,324 votes and their opponents 1,733. The elections were a complete victory for the Company and were held to demonstrate the unripeness of the country for a responsible system. On October 8 the Secretary of State for the Colonies issued a document saying that the question of the future administration of the territories had been under the careful consideration of His Majesty's Government. The Charter, dated October 29, 1889, reserved to the Crown the power at the end of twenty-five years, and at the end of every successive period of ten years, to add to or repeal any of the provisions, but only in relation to so much of the Charter as related to administrative and public matters. Failing the exercise of this power the Charter was automatically extended for another ten years. His Majesty's Government were advised that there was no power in the Charter or elsewhere to shorten or vary the periods. The Directors of the Company had, however, informed the Secretary of State that they would not regard the non-exercise of the right to review by His Majesty's Government as any bar to the establishment of responsible Government should the time appear to be ripe for such a step within the ten years ensuing, and that if, during those ten years, the inhabitants of Southern Rhodesia should find that they were, financially and in other respects, strong enough to assume, with the concurrence of the Imperial Government, the burden of administration, they, the directors, "would be most willing that effect be given to that desire." In view of that statement and the desire of the newly elected Legislative Council for a continuance of the Company's administration, His Majesty's Government had decided not to advise His Majesty to exercise the powers reserved under Article 33 of the Charter, and its provisions would not accordingly be modified. His Majesty would, however, in due course be advised to issue a Supplemental Charter giving effect to the arrangement to which the Directors had agreed and to render possible the establishment of responsible Government in Southern Rhodesia, should the Legislative Council desire it and the Imperial Government concur within the ten years. This announcement closed the controversy, with what satisfaction to Rhodesians is not yet known. The settlers have since had more important matters in hand. Some returned to this country to join the forces of the Crown and many were formed into contingents for the prosecution with the Union of the war in South Africa.

The vexed question of the Chartered Company's claim to the ownership of all land not already transferred to other proprietors, and the contrary claim that the Company holds such land only as trustee for administrative purposes, was put in the way of judicial settlement. The Imperial Government had declined to pronounce on the matter, holding that it was one of the laws determinable only by the courts. In March, however, Mr. Harcourt, the Secretary of State for the Colonies, proposed to the Company that the claim should be referred to the Judicial Committee of the Privy Council. The newly elected Legislative Council of Southern Rhodesia therefore passed a resolution on April 17 contesting the Company's claim to all unalienated land. It appointed a Committee of three to collect evidence and voted 5,000l. for Counsel's fees and other expenses. On July 16 the Order of Reference to the Judicial Committee was published. It recited that the Secretary of State for the Colonies had that day communicated the resolution passed by the Legislative Council of Southern Rhodesia on April 17, 1914, claiming on behalf of the inhabitants and people: (1) that the ownership of the unalienated land in Southern Rhodesia was not vested in and had never been acquired by the British South Africa Company as their commercial or private property, and that any powers of dealing with land that were possessed by it belonged to it solely as the governing body of the territory; (2) that any ownership of the said land that the Company might have acquired was vested in them as an administrative and public asset only; and (3) that on the Company ceasing to be the Government of the territory, all unalienated lands should become the property of the Government, taking the place of the Company as public domain.

According to the Parliamentary White Paper [Cd. 7,325] the administrative accounts of the Company for the year ending March 31, 1913, showed that the Customs receipts and native tax for Southern Rhodesia amounted to 769,978l. and the expenditure 889l. in excess of that sum. The revenue of Northern Rhodesia was 126,336l., and expenditure 178,044l. The total deficit was therefore 52,597l. The annual meeting of the Company was deferred pending the decision of the Government as to the Charter and was held on December 17. The report referred with satisfaction to the action of the Government and the prospect of a decision by the Judicial Committee of the Privy Council as to the ownership of the unalienated lands. The accounts for the year ending March 31, 1914, showed a credit balance of 102,271l. as compared with 85,882l. the previous year. The Southern Rhodesia administrative account showed a surplus revenue of 17,125l. The administrative accounts for Northern Rhodesia showed a deficit of 48,177l. The Directors were of opinion that steady progress was being made in building up a stable and growing revenue. The total receipts from land from all sources were 134,700l., "likely to be largely increased in future years." The mineral estate yielded 63,041l., and the total gross income, exclusive of administrative revenue but inclusive of net receipts from land, amounted to 422,532l. While it was impossible to predict what the effects of the war might be the Directors thought that the disturbance of the Company's operations in certain directions and the shrinkage of the capital value of its investments were not likely to do more than "retard the fulfilment of their hopes."

The total gold production of Rhodesia in 1914 was of the value of 3,580,207l., as against 2,903,267l. in 1913.

II. EGYPT AND THE SUDAN.

At the outbreak of the war the Khedive Abbas Hilmi was at Constantinople, the guest of the Sultan, and Lord Kitchener was home on leave in England. Up to that time the affairs of Egypt had followed a normal course. The Khedive did not return to Cairo. Such information as was permitted to reach England indicated that agents of enemy Powers were engaged in intrigue against us in Egypt, and that emissaries of Turkey were also actively hostile. No news was forthcoming of military changes. There was an ominous silence, broken by occasional messages of reassurance as to the friendly attitude of the Egyptian people. With the advent of Turkey among the combatant Powers at the end of October a new situation arose which had swift and dramatic results. Martial law was proclaimed at Cairo and wholesale arrests of Turkish agents were made. It appeared that Germans and Austrians had been interned and the crews of enemy vessels at Alexandria deported to Malta. Egyptians of dangerous tendencies had also been restrained. On November 2 Lieut.-General Sir John Maxwell assembled at the British Agency a number of Bedouin Sheikhs and informed them that Germany had been successful in inducing the men in power at Constantinople to quarrel with the Allies. "The Government," he is reported to have added, "has therefore convoked the Arab notables, enjoining them that their duty is to remain calm and enjoy the peace and tranquillity on Egyptian soil which the British forces ensure. If the Government finds it necessary to appeal to their devotion to serve the country the Government is fully confident of their reply to its appeal." The notables assured Sir John of their loyalty. By this time it had become known that British Territorial regiments and Indian and Australian troops were in the country, and were being reinforced, and it also appeared that a Turkish Army had entered Egyptian territory in the Sinai Peninsula. British patrols were in touch with advance parties of the enemy thirty miles east of the Suez Canal in December, and nothing further was reported by the close of the year. On December 2 the censorship permitted an official statement that Australian and New Zealand contingents "had disembarked in Egypt to assist in the defence of that country and to complete their training there. When their training is completed they will go direct to the front to fight with other British troops in Europe." These arrivals increased the forces in Egypt by about 20,000, but how many troops we had in the country was not discovered.

A period of official silence and strict censorship of news was broken by a Foreign Office announcement in London, through the censorship, that in view of the state of war arising out of the action of Turkey "Egypt is placed under the protection of His Majesty and will henceforth constitute a Protectorate. The suzerainty of Turkey over Egypt is thus terminated and His Majesty's Government will adopt all measures necessary for the defence of Egypt and the protection of its inhabitants and interests." Lieut.-Colonel Sir Arthur Henry McMahon was appointed High Commissioner. Next day there was a further announcement that, in view of the action of Abbas Hilmi, "lately Khedive of Egypt," who had adhered to the King's enemies, His Majesty's Government had seen fit to depose him from the Khediviate and had offered that high dignity, with the title of Sultan of Egypt, to his Highness Prince Hussein Kamel Pasha, eldest living Prince of the family of Mehemet Ali. The Foreign Office also announced that the French Republic having recognised the British Protectorate over Egypt, His Majesty's Government gave notice of adherence to the Franco-Moroccan Treaty of March 30, 1912. The Foreign Office published simultaneously a letter addressed to the new Sultan by the Acting High Commissioner, dated Cairo, December 19. It was a review of the circumstances preceding the outbreak of war with Turkey, and the consequent changes in the status of Egypt. The letter drew Prince Hussein's attention to the fact that there were two parties in the Turkish Cabinet—a moderate and reforming party who welcomed the assurances of His Majesty and his Allies that neither in Egypt nor elsewhere would the war in Europe be used as a pretext for any action injurious to Ottoman interests, and "a band of unscrupulous military adventurers" who looked to find in a war of aggression waged in concert with His Majesty's enemies, "means of retrieving the disasters, military, financial, and economic into which they had already plunged their country." His Majesty and his Allies, in spite of repeated violation of their rights, had abstained from retaliatory action until the crossing of the Egyptian frontier and the unprovoked attack on Russian ports by Turkish naval forces under German officers. His Majesty's Government possessed ample evidence that since the outbreak of the war with Germany Abbas Hilmi Pasha, the late Khedive, had definitely thrown in his lot with His Majesty's enemies. The rights of the Sultan and the Khedive over the Egyptian Executive were therefore forfeited to His Majesty, whose Government, through the General Officer commanding the Forces, "accepted exclusive responsibility for the defence of Egypt during the present war. It remains to lay down the form of the future Government of the country, freed from all rights of Suzerainty or other rights heretofore claimed by the Ottoman Government." For thirty years His Majesty's Government had regarded themselves as trustees for the inhabitants of Egypt, and they now decided that Great Britain could best fulfil the responsibilities incurred by the formal declaration of a British Protectorate and by the government of the country under such a Protectorate by a Prince of the Khedivial family. "By reason of your age and experience," the letter proceeded, "you have been chosen as the Prince of the family of Mehemet Ali most worthy to occupy the Khedivial position with the title and style of the Sultan of Egypt.... With Ottoman Suzerainty there will disappear the restrictions heretofore placed by Ottoman firmans upon the numbers and organisation of Your Highness's Army.... As regards foreign relations His Majesty's Government deem it most consistent with the new responsibilities assumed by Great Britain that the relations between Your Highness's Government and the Representatives of Foreign Powers should be henceforth conducted through His Majesty's representative at Cairo." With regard to the system of treaties known as the Capitulations, "revision may most conveniently be postponed until the end of the present war." It was the intention of His Majesty's Government to remain faithful, in internal administration, to the policy of reform and economic progress and to associate the governed in the task of government in such measure as the enlightenment of public opinion permitted. They were convinced that the clearer definition of Great Britain's position in the country would accelerate progress towards self-government. Religious convictions would be scrupulously respected; "nor need I affirm," added Sir Arthur McMahon, "that in declaring Egypt free from any duty of obedience to those who have usurped political power at Constantinople, His Majesty's Government are animated by no hostility towards the Khalifate. The past history of Egypt shows indeed that the loyalty of Egyptian Mohammedans towards the Khalifate is independent of any political bonds between Egypt and Constantinople." His Majesty's Government relied with confidence upon the loyalty, good sense, and self-restraint of Egyptian subjects to facilitate the task of the General Officer commanding the forces, who is "entrusted with the maintenance of internal order and with the prevention of the rendering of aid to the enemy."

His Majesty appointed Prince Hussein honorary Knight Grand Cross of the Order of the Bath and also of the Order of St. Michael and St. George, and sent to him the following message:—

On the occasion when your Highness enters upon your high office I desire to convey to your Highness the expression of my most sincere friendship and the assurance of my unfailing support in safeguarding the integrity of Egypt and in securing her future well-being and prosperity.

Your Highness has been called upon to undertake the responsibilities of your high office at a grave crisis in the national life of Egypt, and I feel convinced that you will be able, with the co-operation of your Ministers and the Protectorate of Great Britain, successfully to overcome all the influences which are seeking to destroy the independence of Egypt and the wealth, liberty, and happiness of its people.

George R. AND I.

The Sultan replied as follows:—

To His Majesty the King, London.

I present to your Majesty an expression of my deepest gratitude for the sentiments of friendship with which you have so kindly honoured me, and for the valuable support which assures me of the safety and integrity of the independence of Egypt. Conscious of the responsibilities that I have just assumed, and determined to devote myself entirely to the Protectorate, and to the progress and welfare of my people, I am glad to be able to rely in this task upon the goodwill of your Majesty, and upon the assistance of your Government.

Hussein Kemil.

A Rome message stated that the proclamation of the deposition of the Khedive and the elevation of the Sultan on December 19 was made the occasion of an imposing military display. Cairo was tranquil. In a rescript addressed to the Prime Minister the Sultan said that he himself had aspired to repose after a life of service. But it was his duty in the particularly delicate situation events had created "to assume the weighty charge and, faithful to our past, to continue to place our energy at the service of the country. We owe it to Egypt and to our glorious ancestor Mehemet Ali, whose dynasty we desire to perpetuate." He outlined an internal policy of reform and progress, and on that subject and on representative institutions, paraphrased the language of the Foreign Office letter summarised above. Rushdy Pasha was asked to continue in office as Prime Minister and consented to do so.

Prince Hussein, the second son of Ismail Pasha, was born on December 20, 1853, and was educated in France, where he enjoyed the friendship of Napoleon III. and his family. He was Chamberlain to the Empress Eugenie at the opening of the Suez Canal. Returning finally to Egypt during the Franco-Prussian War, he became Inspector-General and held successive administrative offices. He accompanied his father to Naples on the latter's abdication in 1878, and was abroad for three years. Returning to Egypt after Arabi's rebellion he identified himself with Egyptian interests under the British regime and held various offices. He made a special study of the economic conditions of the peasantry and of Egyptian agriculture and thus earned the name of "the Father of the Fellah." He has a son, Kamel-el-Din, now in his thirtieth year. The new High Commissioner took up his duties late in December.

Events antecedent to the war need only a brief narration. In January the late Khedive opened the first session of the New Legislative Assembly (A.R., 1913, pp. 434, 435), amid great public interest. The inaugural speech expressed satisfaction that the representative institutions of Egypt had been brought into conformity with the needs of the country and now offered opportunities to men of ability. It emphasised the duty laid upon the new Legislature to prepare and suggest laws for economic development, and advised that this right of initiation be used with prudence. The Khedive counselled members to regard the welfare of all classes and especially that of the peasant cultivators, and declared that the exercise of their functions would determine the future of representative government.

The day was regarded as opening a new epoch in the history of Egypt. The session concluded in June and the Assembly was prorogued till November. Sixteen Bills were discussed, of which twelve were passed, dealing with matters of administrative reform and economic questions. Many interrogations to Ministers were made and answered. There were forty-five sittings. An Opposition was developed early in the session and showed aptitude for tactical obstruction. The Cairo correspondent of The Times, giving his impressions of the Assembly at the close of the session, observed that the debates had at times been conspicuous for a lack of dignity, an outspoken disrespect for Ministers and a general excitability. But it was premature, he admitted, to attempt to pass judgment. The majority of the delegates were new to public life and inexperienced in the arts of debate. If the Opposition would adopt a more reasonable attitude towards the Government and bring an unbiased mind to bear upon its labour, there was little doubt that the Assembly would realise the hopes of its founders, for it included many men who had in them the making of good legislators. The composition of the Assembly was: Landowners forty-nine, Lawyers eight, Merchants four, Ulemas and heads of religious sects three; and one Engineer.

The Budget showed receipts for 1913 of E. 17,703,898l. and expenditure E. 17,659,961l. The extraordinary expenditure, on remunerative work of public utility, was E. 2,776,032l. The keystone of financial policy had been the prosecution of such schemes and the remission of anomalous and oppressive taxation. Lord Kitchener claimed that the policy had been justified both by the increase of national wealth and the provision of security against a low Nile. He deprecated the undertaking of capital expenditure by means of loans, especially in a country entirely dependent on agriculture and to a large extent on a single crop. The Budget for 1914-15 estimated the expenditure at E. 18,162,000l. and the revenue at a like figure. The balance at Reserve on January 1, 1914, was E. 5,848,000l. and the outstanding capital of the Egyptian debt E. 94,202,540l., of which E. 88,742,620l. was in the hands of the public. The total annual charge was E. 3,552,000l. The Customs receipts for 1913 amounted to E. 3,939,885l. The value of the imports was E. 27,865,195l.; exports showed a decrease of 8.89 per cent., the total being E. 31,662,200l. The share of the United Kingdom was 43.1 per cent. of the exports. The export of phosphates from the Red Sea mining area increases yearly. The Nile flood in 1913 was abnormally low and late—the lowest on record; and the report suggested that but for the irrigation works and organised distribution of the available supply economic disaster would have been caused. The Nile was again low in 1914. A dam is to be constructed on the White Nile about forty miles south of Khartoum. The probable cost is 1,000,000l. It will serve the double purpose of a storage reservoir and control of excessive floods; but it was intimated that resort would ultimately be made "to regulation on the Great Lakes as a final settlement of the problem of Egypt's summer water when all available areas are developed." The educational section of the Report is of an encouraging tenour. Note is taken of the fact that about 750 Egyptians were completing their education in Europe, chiefly in England and France. Concerning the Khedivial Library mention is made of the appointment as Director of Dr. Schaade, "a distinguished Orientalist, who has been for some years an editor of 'The Encyclopædia of Islam' and latterly a lecturer on Oriental languages at Breslau." Among the new acquisitions of the library was a series of works on Islam printed by order of the ex-Sultan of Morocco, Mulai Abd el Hafiz, and presented by His Majesty.

The Report again gives a disturbing account of the increase of crime, despite the new Arms Act. Lord Kitchener points out that the main responsibility for public security rests with the Mudirs and hints that if there is not a better discharge the system must be considered.

A strong light on the social condition of Egypt was thrown by the Report of the Judicial Adviser (Sir Malcolm McIlwraith) for the year 1913. Crimes and serious misdemeanours showed a continuous increase. Poverty was not the cause. Food and shelter were within reach of all. Cold was unknown. Habitual charity was such that the terrors of complete destitution were not to be found. But rapacity and greed were rife and had been stimulated by economic conditions and the rise in the standard of living. Emulation in extravagance was a cause of crime, thirst for revenge a still more potent cause. Murder on the spur of the moment was common in Egypt, especially in the south. A change in the temperament of the people, such as education might be expected to produce, could alone diminish the number of these murders. In past times communal responsibility was enforced, but with the advance of civilisation repression had to be confined within the law. Far from having a particular interest in the suppression of crime, the Fellah knew from experience that to volunteer evidence often entailed long absence from work and exposed him to the danger of retaliation by friends of the accused. He therefore showed strong disinclination to have anything to do with criminal law and administration.

Touching the creation at the close of 1913 of the Ministry of Waffs Lord Kitchener says that the Ministry is assisted by a Council which includes the Sheikh El Azhar and the Grand Mufti of Egypt, the highest dignitaries of the Mohammedan religion. The other members are Moslems. The new organisation was expected to result in an improved administration of the funds and properties of the religious trusts. The ill-effects of yet another low Nile caused some uneasiness as the year passed. The economic disaster of war was met for the time by a general moratorium. Since August 4 there has been a strict censorship in Egypt.

Lord Kitchener made a tour of the Sudan in January and his report was thus written with fresh knowledge. So far as is known there have since been no untoward developments, though in March Major Conry, in charge of an Arab battalion, lost his life in an encounter with a party of outlaws on the Atbara River. The Report speaks of 1913 as an uneventful year except for the Imperial guarantee of a loan of E. 3,000,000l. for the development of the Sudan as a cotton-growing country. The Nile flood was the lowest known in the Soudan for a hundred years. The area cultivated was 2,303 feddans as against 1,937,000 in 1912. There was a decrease in the area of cotton, due entirely to climatic reasons, "not to the indifference of the natives, among whom there is a marked revival of interest in all forms of agriculture." At the Tayiba demonstration station, which is now being managed by the Sudan Plantations Syndicate on a commercial basis, the cotton yield was good and the quality of a high order. The working of the Tokar cotton area "has more than justified the policy of the Government. A marked improvement in the cultivation of the land and in the handling of cotton has taken place and consequently higher average yields and better prices have been obtained. The sale of cotton by public auction, after estimation by Government classifiers, has ensured a fair market price to the cultivators." The revenue for 1913 was E. 1,644,000l. and there was a surplus over expenditure of E. 29,000l. The estimates for 1914 were for a revenue of E. 1,644,000l. also with expenditure of a like sum. There was E. 65,000l. in reserve on January 1, 1914. There are brief but instructive administrative reports. In the Sudan, as in Egypt, a considerable increase in serious crime is recorded. The slave traffic has been made "almost impossible." The population continues to increase, but there is excessive infant mortality. Health was "satisfactory," malaria being less frequent owing to the dryness of the year; but sleeping sickness was prevalent in the Yei River district and is now found over a large area in Western Mongalla and Western Bahr-el-Ghazal; it was also reported to be prevalent in the Congo to the west and south-west of Tembara. Cattle disease had been exceptionally prevalent. The opening of new districts had increased the territorial responsibility of the Army. The British garrison at Khartoum consisted at the time of the Report of six companies of infantry and a detachment of garrison artillery. A list is given of nine military operations in as many different districts for the suppression of raiding parties and tribal disturbances. A new general map of the Sudan on a scale of 1:5,000,000 is nearing completion. The condition of the south-eastern frontier is described as "not altogether satisfactory." An extensive trade in arms was carried on between Abyssinia and the Nuer country. Financial considerations precluded the Government from setting up an effective administration between the Khor Yabus and Lake Rudolph, and from occupying the Boma plateau. Something had been done by the construction of posts after the expedition to the Anuak country in 1912. These are at Khobo Bonjak and Nasser; "but the problem will never be satisfactorily solved until the whole country up to the frontier is effectively occupied. The political situation at Adis Ababa, and the apparent inability of the Abyssinian Government to put a stop to the smuggling of arms from the coast, also make for unrest in the outlying districts bordering on the Sudan, which do not appear to be under the full control of the central Government."

The war had had no apparent disturbing effect on the Sudan and the scanty news from Khartoum and beyond by the end of the year was reassuring as to the attitude of the inhabitants. Sir Reginald Wingate, the Governor-General and also Sirdar of the Egyptian Army, which was believed to be for the most part in the Sudan when war was declared, was in England on leave in August but returned immediately. After spending some time in Cairo he visited the Sudan and held receptions of Sheikhs and notables at various centres. The most important gathering was at Khartoum on November 8. The Sudan Gazette of the previous day had contained a Proclamation announcing that, at the instigation of Germany, Turkey had violated the Egyptian frontier and that a state of war existed between Turkey and Great Britain, and calling upon the inhabitants of the Sudan to render to the British, Egyptian and Sudanese forces all the assistance that might be required of them. The private receptions prior to this proclamation had already made the Sheikhs and Notables cognisant of the situation as regards Turkey. The gathering of Sheikhs and Ulema at Khartoum was addressed by Sir Reginald Wingate. After announcing the state of war with Turkey, as from November 7, he told them that in order that they should fully understand the causes of this new war he would call upon the Grand Mufti to read an Address from him—Sir Reginald—to themselves and to other religious leaders in the Sudan. The Grand Mufti read the Address in Arabic. Addressing the company as men of intelligence and education, possessing a good influence over the people, the Governor-General appealed to their knowledge of the regenerative work the English had done in the Sudan, and emphasised our non-interference with any man in the exercise of his religion. With this knowledge in his mind and in theirs he was, he said, able to talk to them candidly and without reservation. He then described to them the condition of Turkey on the eve of and since the overthrow of the Sultan Abdul Hamid—how the men who had arrogated to themselves the direction of affairs had mismanaged the Empire, and had now gone to war with the one Power which by her actions and the sentiments of her people had ever been a true and sympathetic friend to the Moslems and to Islam. "These men—this syndicate of Jews, financiers and low-born intriguers, like broken gamblers staking their last coin, and in deference to the urgent demands of Germany and our enemies," had gone to war. After an argument that England had thus been forced to war by the Turkish adventurers and that it was not her object to gain territory or advantage at the expense of a Mohammedan State, the Address assured the gathering that the world policy of Great Britain would remain unchanged. The sanctity and inviolability of the Holy Places would be maintained and enforced on others. She would shelter and protect all Mohammedan mosques on her borders, as she had done for a hundred and fifty years in India, where she had guarded the interests of 62,000,000 Mohammedans, "many thousands of whom are now fighting alongside their British fellow-subjects against the German Army." The Sudan Sheikhs and Ulema knew the evils of Turkish rule, said the Address, from bitter experience. But they might feel—and Sir Reginald sympathised with them—"a certain sorrow at this war." Some might fear that the result might affect the situation of Mohammedans in other parts of the world. He assured them before God that their fears were groundless. The position of no single Mohammedan in the British Empire would be changed one iota nor a single privilege granted to Islam repudiated. The Address concluded thus:—

Now I ask you at this present time, you, men of religion, learning, and experience, to give honourable and wise counsels to the people who will listen to you; for here in the Sudan, as elsewhere in the world, the fools will listen to the wise, the ignorant to the learned, and the common people to men of wisdom and education. I ask you, then, and I rely upon you, to publish true reports, to be careful and wise in your words, and by your example to allay baseless and ignorant fears, to contradict false or alarmist rumours, and by all means in your power to ensure a sane and reasonable judgment of events by your co-religionists and the natives of this country.

The Address was received with enthusiasm and many speakers publicly protested their loyalty, among them the Mahdi's eldest son. The document was circulated throughout the country and "it is said there is hardly a noteworthy person in the Sudan who has not written or telegraphed to the Governor-General." Offers of assistance were almost embarrassing in their generosity. Until the end of the year not so much as a whisper of disaffection had reached England from the Sudan—or, if that should prove to be inaccurate, had passed the Censor. Despatches published on December 30 confirmed the unofficial accounts of the satisfactory attitude of all classes of Sudanese.

III. NORTH-EAST AFRICA AND THE PROTECTORATES.

In the Somaliland Protectorate the action at Dul Madoba in August, 1913, had serious consequences and a state of war prevailed throughout 1914. Among Supplementary Estimates submitted to the House of Commons in February was one for 25,000l. "to meet additional expenditure entailed upon Somaliland in connexion with the activity of the Mullah." At that time he was believed to be preparing for an attack on Burao, where, however, we had no garrison, the force having been withdrawn after the disaster to Captain Corfield and his camelry. He had been raiding friendly tribes in the interior and there was a risk that he might attack Berbera. Our garrison there consisted of 260 Carnatic infantry and a body of camelry and about the same number at Sheikh. Further troops were on their way from Aden. It appeared that the Secretary of State for the Colonies had ordered the camel corps to be increased from 150 to 300, and this had been done; and in February he ordered a further increase to 500. The policy was to reoccupy Burao, about eighty miles from the coast, and to occupy Sheikh, midway between Burao and Berbera, but not to occupy the interior nor send a punitive force against the Mullah. The forts at Burao and Sheikh would be strengthened and the Indian contingent kept at 400 instead of 200 as before. The estimates for 1914 showed that the recurrent cost of these permanent defence forces—Indians and camelry—would be 58,800l. Mr. Harcourt claimed that these measures met the requirements of the men on the spot. The Mullah was an old man, he said, in an advanced stage of dropsy, physically immovable and incapable of leading the Dervish forays. He had no probable or possible successor. Since he had been ex-communicated from Mecca he had been left enfeebled—a robber, but not a prophet. With a little patience and endurance Somaliland might yet be comparatively peaceful. The policy, therefore, was to go no farther than Burao and wait for the death of the Mullah. The Dervish reply to it was an attack in March on Berbera itself, a body of horsemen dashing to within firing distance of the town and making good their escape. In July there were disturbing reports of Dervish activity and it was telegraphed from Aden that more troops had been requisitioned. The war in Europe closed the usual channels of knowledge, but in December the Press Bureau issued a short review of what had occurred. Burao was to be the base of the enlarged camel corps. Major F. A. Cubitt, D.S.O., had been put in command of the troops and had arrived in the Protectorate in August. On November 20 the camelry were patrolling the grazing grounds of the tribesmen at Burao as far as the Ain Valley, and Colonel Cubitt "encountered strong opposition at Shimberberris, where the dervishes were in a strong position." He attacked them and again on the 23rd when all their forts were captured. "The dervishes, overcome by the moral effect of shell fire"—there had been no previous mention of artillery in Somaliland—took to flight and suffered material loss. The forts were demolished as far as practicable. The walls were over six feet thick. One of the British officers—Captain H. W. Symons—was killed and two others wounded. The camelry returned to Burao and the Commissioner reported that "he could not overestimate the excellent effect which this success will have throughout the Protectorate." It appears that naval airmen were employed in these operations—the first time aircraft could have been seen in this region of Africa. The Colonial Office, while not denying the statement, declined to throw any light upon its plans for the future.

British East Africa was at once drawn into the vortex of the war. The Secretary of State for the Colonies announced early in October that during the previous month there had been considerable activity along the Anglo-German border because of attempts to raid British territory and cut the Uganda Railway. All the attempts, with one unimportant exception—a frontier post whose occupation by the enemy it was not at the time convenient to oppose—had been repulsed and the raiding parties forced to retire. The normal garrisons of the Protectorate and also of Uganda had been increased by "a strong body of troops from India and also by mounted and unmounted volunteer forces locally raised; and no anxiety was felt as to the military situation." One of the earliest moves of the enemy was to send a small party under white officers to blow up the Uganda Railway near Maungu, but the party was broken up and its dynamite and outfit captured. At Tsavo on September 6 there was "a hot engagement" between a strong force of the enemy and Indian troops and King's Royal Rifles. The enemy were severely handled and repulsed. The enemy had Maxim guns, which the Punjabis made "a gallant effort to rush with the bayonet," and our losses were not slight. On the 10th there was another engagement with an invading force 400 strong including fifty Europeans. This force occupied Kisi on the 11th, and was attacked on the 12th by a British column which was, however, compelled to retire. On the 13th the enemy abandoned Kisi, which the British occupied, finding there ten dead Germans (Europeans) and six wounded. The Germans had retired to Karungu. Meanwhile German and British steamers on the Victoria Nyanza had been engaged and German dhows sunk. On the 20th the Germans attacked a British post at Campi ya Marabu and after two hours' fighting retired into their own territory, leaving thirteen dead. Lieut. A. C. H. Forster, in command of the King's African Rifles there, was killed. The officer who took over the command reported that the conduct of the King's African Rifles was splendid and that the success had "materially encouraged the Masai who lived in the neighbourhood." The British outpost at Majoreni was attacked on the 23rd, but the enemy again repulsed. On the 25th a German force of thirty-five Europeans and 150 natives, with two maxims, attacked a mounted squadron of the Rifles, and after an hour's bush fighting retreated, leaving eleven dead and many wounded. The next day a strong force of the enemy, including fifty Europeans, attacked the Rifles at Mzirna, but were repulsed, leaving seventeen dead. During November and December the published casualty lists showed that fighting had been actively continued and occasional letters home suggested that it was severe. On November 19 complaint was made in the House of Lords by Lord Curzon of the secretiveness of the Government, which had merely issued "a very extensive list of casualties." Lord Crewe pointed out that German East Africa covered some 350,000 square miles and had a white German population of between 5,000 and 6,000. The German force there had been reinforced by reservists and he believed that some naval force had also been brought from the Far East. The Germans were well provided with weapons and had machine guns and constituted a formidable force. While the white population of British East Africa equalled the German (Lord Crewe was in error here) it had not the same military element in it. The native infantry and police force in the German Protectorate numbered 2,000. In the British there was a considerable force of native police and a military force—the Rifles—which, though not so large, was extremely efficient and well officered. It was clear that at the beginning of the war our position in East Africa could not be altogether secure and it was necessary to send reinforcements at an early date. The fighting had been in a good many parts, with varying results and considerable losses. The total casualties in two months were about 900. It had become necessary to send reinforcements from India. The fate of the German possessions, Lord Crewe pointed out, would depend on the ultimate settlement of the war; but it was necessary to preserve the position of Great Britain as the paramount Power in Central Africa where she would repel the German attacks with all the force she could muster. That was the position of affairs when the year closed. In the earlier months of the year there had been serious trouble in Jubaland Province, owing to an incursion of Somalis, armed with rifles. They had probably been fighting against us in Northern Somaliland. A new post had just been set up at Seremli with Lieut. Lloyd Jones and a few men in charge. The Somalis—of the Marehan tribe—said they had not come to fight and were told that they must give up their rifles, which had apparently been obtained from Abyssinia, which does a large trade in arms and ammunition—a trade which it has been found impossible to keep out of Jubaland and Somaliland as also out of the Sudan border country. The Somalis would not give up their arms and went away, but returned and attacked the station. Lieut. Lloyd Jones was severely wounded. Troops had been telegraphed for through the Italian Marconi station at Bardera and companies of Rifles hurriedly sent from Uganda and Nyasaland. There was severe fighting, the Somalis abandoning their bush tactics and charging down on the troops. They failed to break the square, owing in part to the maxim fire. A midnight attack was also repulsed. Our losses were slight and that of the Somalis heavy. Other operations followed later for the disarmament of the invaders. Two British officers lost their lives in the fighting and the affair illustrated the extreme difficulty of maintaining authority in Jubaland, notwithstanding the co-operation of the Italians on the other side of the Juba. Until the traffic in arms can be stopped Somali incursions could be checked only by a chain of posts or the constant use of a mobile force. The Protectorate was making good progress until the war plunged African affairs everywhere into confusion. One effect of the war was to suspend the agitation at Nairobi and in the settled districts for some form of self-government, beginning with representation on the Legislative Council. Nor has the question of the reservation of the Highlands for European settlement advanced. A Bill was passed without opposition—scarcely without criticism—in the Imperial Parliament guaranteeing a loan of 3,000,000l. for the Protectorates of British East Africa, Uganda, and Nyasaland. In East Africa the money was to be disbursed upon harbour works and wharves at Kililundi, on roads and bridges, improvements of the Uganda Railway, additional rolling stock and more steamers for Lake Nyanza; and on roads and railways in Nyasa. Repayment of the loan is to be made within forty years. No charge on the British Treasury was involved.

Abyssinia seems to have had more trouble than usual with her border peoples, especially on the South. The Italians in Eritrea strengthened their forces and this in conjunction with the gathering of Abyssinian troops, sent for the purpose of suppressing border troubles, gave rise to a suspicion that Italy had ambitions hostile to the Emperor Lidj Iassu; but these were dissipated by Signor Martini, the Minister for the Colonies in Rome. Italy's policy, he declared, was restricted to protecting the frontier and holding aloof from Abyssinia's internal affairs. Lidj Iassu has made his father, Ras Michael, King of Wotto and Tigre. Ras Michael is the husband of a daughter of the late Emperor Menelik, and Lidj Iassu is a youth.

Concerning German East Africa the prosperity of 1913 continued up to the outbreak of war, and it appeared that the completion of the trunk line from the coast to Kigoma, on Lake Tanganyika, several months in advance of the scheduled time, stimulated the energies of the administration and the settlers. The effect of this completion on the traffic of the Uganda Railway had not developed and will not be injurious if German Africa passes into British hands as the result of the war. The line is an achievement scarcely less remarkable than the Uganda Railway, and must in any event have great influence upon African commerce. Two trains a week were at first run to the Lake, the journey taking rather less than one hundred hours.

A glance at a map will show that for the trade of Central Africa the German line enters into competition both with the British lines to the south and east and the Belgian Central Railway through the Valley of the Lukuga to the Congo shore of the Lake. The Belgian line was expected to be completed in June; but goods by it must be transhipped before they reach the west coast, whereas the German railway carries them through to the east coast, at Dar-es-Salaam, now one of the best-equipped ports on the continent. In connexion with the completion of this railway the Germans had intended to hold an exhibition at Dar-es-Salaam, the capital, in August and elaborate preparations had been made. German scientists have for many years worked actively in the Protectorate. Dr. Hans Reck, of Berlin University, discovered in the north of the region the skeleton of a man of the diluvial period of Africa. Dr. Reck estimated the age of the skull at 150,000 years. It was found with mammoth fossils and resembled that of the primitive Bushman. The rest of the skeleton was on its way to Europe.

In Nyasaland (British Central Africa) where part of the Lake forms the German frontier, the war had serious consequences. The Germans invaded the country and on September 8 a British force was launched against a body some 400 strong. The enemy evaded this force and attacked the post at Karonga, held by an officer with fifty African Rifles and a few police and civilians. Resistance was kept up until the main body arrived and drove the enemy back. The fighting lasted through the day and the Governor reported to the Colonial Office that "the enemy fought with great determination and had to be dislodged by repeated bayonet charges." They were ultimately driven towards Songwe, the British being too exhausted to pursue. Two field and two machine guns were captured by our force and the enemy lost seven officers killed and two captured. Karonga is the principal station in the north of the Protectorate and Songwe is the German frontier post farther north. On that day (Sept. 13) there was a sharp engagement on the Kisu Kenu Road between the King's African Rifles and about 400 Germans, including fifty whites. The German losses throughout were heavy and of the nineteen officers engaged at Karonga eleven were accounted for, and of those who escaped three were known to have been wounded. The Secretary of State telegraphed "his sincere appreciation of the loyal and valuable assistance rendered by all sections of the community." Later news was lacking. Zanzibar, which is now administered by a Resident under the authority of the Governor of British East Africa, had, as far as was known in England, an uneventful year.

IV. NORTH AND WEST AFRICA.

Until the outbreak of war France had pursued with success her policy of consolidating her interests in Morocco. Practically all that is known of the condition of the Protectorate since July is that Moorish and Senegalese troops, in numbers not disclosed, were withdrawn and employed in the fighting in France, as were French and native troops in Algeria and Tunis. An indication that the internal state of the country was satisfactory, and that the Turkish Sultan's proclamation of a Holy War had not then had any overt effect in North-West Africa, was afforded—for what it may be worth—by a congratulatory message from the Sultan of Morocco to his troops with the Allies. This applauded them for the help they were giving "against the enemies of humanity, liberty and civilisation," exhorted them to steadfastness and expressed entire confidence in an ultimate triumph. Germans and Austrians were expelled from the Protectorate, and many who were believed to be concerned in hostile intrigues were arrested. A batch of German merchants were accused of plotting for a native rising and were put on trial by court martial, with what result is not known. There had been some native trouble in the Zaian district in June, where a detachment of troops guarding telegraphist workers were attacked between Mekinez and Rabat, and there was evidence that in the mountains of the Middle Atlas there was much tribal unrest. An expedition was sent to reduce the clans to subjection. No particulars were forthcoming of German political activity within the Protectorate, and there is reason to believe that the Zaian difficulties were merely part of the general problem of pacification in the less accessible regions of the country. Substantial progress was made in this direction in May by the French occupation of Taza, which lies, roughly, midway between Fez and the Algerian frontier. Stout resistance had been expected, but the French surprised the tribesmen by a forced night march and the town was seized with little loss. It was believed that this easy mastery of the Beni-Udjam clans would finally pacify the inhabitants of the northern region, who were said to have accepted the situation willingly. There still remained an immense triangular area to the south comprising the Middle and Great Atlas ranges, where chains of military posts had yet to be established; but with the subjugation of the marauding tribes of the North it was assumed that the way was cleared for the railway between Fez and Guersif, on the Algerian frontier, thus linking up Tunis by an unbroken line, via Ujda, to Rabat and Casablanca on the Atlantic. Further fighting was reported, however, in the Taza region late in July, the enemy attacking a strong French force under General Gouraud. They were beaten off, but the French lost fifty killed and ninety wounded. On August 4 the curtain fell and the true condition of Morocco, and the whole of North Africa, is not likely to be ascertainable until Peace. As a consequence of the Franco-Spanish treaty of Madrid there was entire co-operation between the two Powers in Morocco, and the advance on Taza was taken in conjunction with Spanish activity in the Mediterranean zone and after a visit by General Lyantey, the French Resident General, to Madrid. An incidental result of this visit was the abolition of the Capitulations providing for Consular jurisdiction over French and British subjects, who now come under the ordinary tribunals in each Protectorate. The Convention was also ratified for the construction of a railway from Tangier to Fez, and engineers and surveyors were at work in the belief that the tribesmen in that part of the Protectorates were sufficiently pacified to permit of the laying of the rails. There was the usual sporadic fighting in the Riff. In Algeria a financial difficulty arose from a request by the French Government for a contribution to the cost of military defence in France. No demand was made, but it was pointed out that other French colonies contribute, and it was suggested that Algeria could spare 5,000,000 francs. Though acceding to the request on patriotic grounds, the Delegations Financières, in view of the heavy development expenses of the country, offered 4,000,000 francs, and to raise this sum additional taxation had to be imposed. Authority was asked for a loan of 55,000,000 francs, secured on the State railways, the money to be expended on improving and extending the system; but the war appears to have put this project in abeyance.

Tripoli and Cyrenaica, within the range of the Italian coastal occupation, appear to have continued in the quiescent condition produced by the Italian successes in the early part of 1913. From a Treasury statement issued in Rome the cost of the acquisition was 45,200,000l. On the outbreak of war there were reports of a recrudescence of native trouble, which was attributed to German intrigue. Allegations were made against the German Consul in Tripoli, who was arrested, with other Germans, said to be army officers and believed to be engaged in native dealings hostile to Italy. According to Rome newspapers the object of the Germans was to instigate a Holy War. A mysterious incident, conjectured to be in connexion with the affairs of the Tripolitaine, was a visit of a Senussi Sheikh—El Sayed Idris El Senussi, a cousin of the Sheikh El Senussi—to the Khedive at Cairo in June. He was to proceed to Constantinople, and the report was that he sought to arrange with the Porte and Italy a pact under which, by the payment of a tribute to Italy, the hinterland would not be entered by that Power. Whatever the object of the visit the events of August and September made it the more significant. No reports of other activity by the Senussi were forthcoming.

The war had extended but slightly to Nigeria by the end of the year. Small raids by Germans from the Cameroons—presumably with native troops—had been made, but in each case, said the Colonial Office, the parties were either quickly withdrawn or driven back. On November 16 there was a fight near Bakundi in which District Officer Glenny was killed. "The German force was subsequently driven back and dispersed." On the next day there was an encounter near Marna, and Lieutenant A. R. Peel and Mr. M. Percival, a mining engineer who had volunteered, lost their lives. In August the Colonial Office announced temporary reductions in the railway rates and scale of royalties affecting the tin mining industry. A further reduction was possible in 1915. It appeared from the speech of the chairman of the Niger Company (the Earl of Scarborough) that cash trade has now displaced barter trade in all but the outlying districts, and that competing firms, British and foreign, are contesting the commercial supremacy of the Company, especially at Kano. The tin industry has not realised the extravagant expectations of the "boom" period; but there are proved areas which are being worked with success. The Colonial Office issued in December a Report dealing chiefly with the setting up by Sir Frederick Lugard of a native judiciary for the administration of tribal laws. The amalgamation of the North and South Protectorates took effect on January 1, but sufficient time has not yet passed for the full benefits of the unification to be appraised. At the outset His Majesty sent a message of good wishes to the Emirs and chiefs and other inhabitants, and Sir Frederick Lugard replied on their behalf, saying that he had taken steps to communicate the message, and asked the Colonial Secretary to assure His Majesty of an abiding loyalty.

The war was vigorously prosecuted in the Cameroons. On August 25 a Nigerian force under Colonel P. Maclear moved out from Yola, crossed the frontier and attacked and occupied Tepe, but lost two officers killed and two wounded. Pushing on to Saratse Colonel Maclear attacked the German station at Garua, but, after capturing a fort, was heavily attacked at dawn, and, after suffering considerable loss, was compelled to retire into British territory. Colonel Maclear and four other officers were killed and two medical officers captured. Meanwhile two other British columns had crossed the frontier and left a garrison at Nsanakang, which on September 6 at 2 A.M. was "suddenly attacked by the enemy, who had received strong reinforcements. This attack was repulsed, but a second one, made at 5 A.M., proved successful after a stubborn resistance. The report of this engagement states that our troops fought magnificently, as even the Germans admitted. The casualties were heavy and Nsanakang was neutralised in order that the wounded might be attended to." Meanwhile French troops from Libreville had landed in Corisco Bay from a warship, which sunk two German auxiliaries, and on September 26 successfully attacked Ukoko; and H.M.S. Cumberland and Dwarf, having reconnoitred the mouth of the Cameroons River, landed an Anglo-French force under cover of a bombardment and entered Duala, the capital, and Bonaberi, which both surrendered unconditionally. The joint force was under the command of Brigadier-General C. M. Dobell. The wireless station had been destroyed. Little damage had been done by the bombardment. Forty thousand tons of German shipping was captured in the harbour. The German forces had retreated inland in three directions and the Allies were pursuing. On December 21 the Colonial Office announced the opening of the port of Duala to trade. The German tariff would be enforced for the present, but trade with the enemy was prohibited, and limited to such areas as the military authorities thought fit. The latest news of the fighting was from a French source and showed that there had been severe conflicts at Edea, some fifty-six miles from Duala, on the railway running south-east from that port.

In Togoland the Germans made an unconditional submission. Lieut.-Colonel Bryant, commanding our forces which had passed into Togoland from the Gold Coast, reported on August 24 that the German wireless station at Kamina had been destroyed by the enemy, and that they had sent a flag of truce offering to capitulate if given the honours of war and certain conditions. They were told they were not in a position to ask for terms and must capitulate, which they did after some hours' delay. The Allied force—French native troops acting with a Gold Coast frontier force—thereupon occupied Kamina. The cost of these operations was 60,000l. and the Legislative Council of the Gold Coast Colony passed a resolution offering to pay it as "a tangible expression of the widely manifested wishes of the inhabitants to afford their loyal support to His Majesty's Government, and to manifest their sympathy with it in the righteous war in which the Empire is engaged." On December 2 the Governor telegraphed that the Revenue Estimates having disclosed a much more favourable position than was expected he had inserted, "at the earnestly expressed wish of the unofficial members of the Council," a sum of 80,000l. as a contribution by the Gold Coast during 1915 to the expenses of the war, this in addition to the Togoland payment. Mr. Harcourt replied that the offer would be gladly accepted "if it should appear that the financial position of the Gold Coast allows of so large a contribution."

From the Belgian Congo news was very scanty, and such fighting as occurred took place on the frontier in mid-Africa, chiefly it seems south of Tanganyika. A report from the Governor-General of Katanga Province spoke of "a complete defeat" of the Germans at Ki Senei, on the Lake. But no sufficient information is yet available to show how far the Congo was affected by the war. The Congo Estimates settled at Brussels in March disclosed a deficit of 856,000l. It was expected by M. Renkin, Minister for the Colonies, that the Central Railway would reach Lake Tanganyika in June. Touching the competition of the German line from the Lake to the east coast, he admitted that it would modify transport conditions in the Congo by attracting traffic which would otherwise flow to the west; but he deprecated exaggeration about German influence in Africa and thought it an advantage to Belgium that the Great African lines should meet in the Congo. New railway projects for the Congo, extending over 2,000 miles, were submitted to Parliament; but the war has deferred them indefinitely. Diamonds are now among the exports of the Congo, and the consignments to Brussels, on account of the Société Internationale Forestière et Minère, were reported to be of good quality. German enterprise, in Africa extended to Portuguese West Africa before the war, a powerful financial group entering upon the preliminaries of railway construction from the coast. When war was declared enterprise took the form of a military violation of Portuguese territory, a small body of Germans entering South Angola. Portuguese marines were landed and there was a frontier fight. There were engagements on two other points of the frontier and the Germans were represented to have been defeated. The addition of Portugal to the combatants in Europe was, however, prevented at the time by a formal apology through the German Consul at Loanda, and apparently the incursion over the frontier was a military error outside the limits of German war policy in Africa. It was an obscure incident of the war, especially as fighting was renewed in Angola. On December 22 Portugal resolved to take vigorous measures "for the military defence of the Colonies and also preparations for our intervention in the war in Europe on the side of Great Britain." The Labour difficulty on the coast and the islands brought trouble to a Baptist missionary, the Rev. J. S. Bowskill, who had been active in the native interest. He was arrested at San Salvador, and the Baptist Missionary Society made energetic representations to the Foreign Office. Sir Edward Grey, having received information that Mr. Bowskill was to be tried by the military authorities, telegraphed to Lisbon that it was absolutely essential that a British Consular officer should be present at the trial, and that the trial should be before a properly constituted civil tribunal; and he urged that immediate orders to this effect be sent to the local authorities. The result was that Mr. Bowskill was liberated on parole, pending inquiry.

Except for the visit of a squadron of Austrian battleships in May, and for such changes as the war may have brought, there is little to record concerning Malta. It was used as a place of internment for deportees from Egypt.

CHAPTER VIII.
AMERICA.

I. THE UNITED STATES OF AMERICA AND ITS DEPENDENCIES.

Apart from the effects of the cataclysm in Europe, the year was marked by financial disturbances and trade depression, which combined with the apparent results of the President's policy in Mexico to react unfavourably on the position of the Administration.

At the opening of the year the President was popular in the country, and had an unusual control over Congress. The solution of the tariff and currency problems had cleared the way for anti-Trust legislation, and the effect of the Report of the Pujo Committee was seen in the voluntary resignation by the members of the great banking firm of J. P. Morgan & Co. of thirty out of their thirty-nine directorships in railroad and other companies. Those resigned by Mr. J. P. Morgan included directorships of the New York Central and other Vanderbilt lines, and of the Western Union Telegraph Company, while his partners retired, inter alia, from the United States Steel Corporation, the Guaranty and other Trust Companies, and the Westinghouse Electric and Manufacturing Company. Other members of banking firms followed the Morgan example.

Congress reassembled on January 12, and on January 20 President Wilson read to it in joint session his Message dealing with "the very difficult and intricate matter of trusts and monopolies." Disclaiming any desire "to unsettle business or anywhere seriously to break its established course athwart," he recommended (1) the effectual prohibition of interlocking directorates of banks, railroads, industrial, commercial and public service bodies; (2) a law empowering the Interstate Commerce Commission to superintend the issue of stocks and bonds of railways needing money for their development; (3) more specific definition of "restraints of trade" under the Sherman Law; (4) the creation of an Interstate Commission to aid the Courts and provide information enabling business to conform to the Sherman Law; (5) Legislation ensuring the punishment of persons responsible for unlawful business practices; (6) prohibition of "holding companies" [i.e. companies controlling others by owning large amounts of their stock]; and (7) the grant to private persons of the right to bring suits for redress based on the results of Government suits. The Message was conciliatory in tone, and its favourable reception, especially in financial circles, showed that the business world was ready to meet public opinion in attenuating the features of "big business" most resented by the public.

These recommendations were embodied in four Bills: (a) prohibiting interlocking directorates, but allowing two years for their holders to resign; (b) creating an Interstate Trade Commission of five members, with wide and inquisitorial powers of investigating the business of companies (other than railroads) engaging in interstate and foreign commerce, and designed to aid the Attorney-General in inquiries into offences against the anti-Trust law; (c) a Trade Relations Bill, prohibiting certain unfair trade practices and enabling persons injured by them to recover damages by the aid of the proofs established by Government inquiries; (d) a Bill further defining unlawful monopoly and restraint of trade as dealt with under the anti-Trust law, and imposing penalties for violation. Among other items in the programme for the session were a Rural Credits Bill facilitating advances to farmers, and a Bill for leasing the Alaska coal lands, designed to prevent the growth of a monopoly in them.

The President now turned his attention to foreign policy, which gave cause for anxiety in more than one direction. A settlement of the dispute with Colombia was already pending, but the friction with Japan was aggravated by a Japanese Exclusion Bill (shelved eventually through the influence of the Administration), by a drastic Immigration Bill, and by rumours that Japan was assisting Huerta in Mexico. The Spanish-American countries were obviously hostile to any sort of financial protectorate by the United States, Hayti and the Dominican Republic were seriously disturbed, and the Mexican problem still awaited solution. The Senate was adverse to the Arbitration Treaties (A.R., 1913, p. 459), and the Panama tolls question was pressing. On January 26 the President conferred with the Senate Committee on Foreign Relations, and on February 5 he stated what had already been intimated, that he would press for the suspension of the exemption of coastwise shipping in the current session. But the most serious difficulty was in Mexico. Early in the year preparations had been made for the possibility of enforced intervention by the purchase of stores of ammunition and the order that the warships, after their pending Southern cruises, should meet off the Mexican coast; and the alleged attitude both of General Huerta and of Japan gave force to the demands made for an increased Army and Fleet. But Huerta seemed likely to have to retire, and on February 4 President Wilson issued a proclamation removing the embargo on the export of arms to Mexico, on the ground that, as there was now no constitutional government, the embargo interfered with the settlement by Mexico of her own affairs—a view which overlooked the danger that the arms imported would partly go to Zapata and other leaders who were brigands rather than politicians, and so might intensify the disorder. The step, nevertheless, was favourably received by the American Press, as likely to hasten a settlement; and public attention was temporarily diverted to other matters. The new banking system was to be supported by banks representing some 99 per cent. of the banking capital in the country; and business seemed to be improving.

The President's announcement regarding the Panama tolls, however, had set up some opposition, primarily among the shipbuilding interests, the ultra-Protectionists and the Irish-Americans, but extending also to his own Democratic followers; and it and his advocacy of the arbitration treaties were attributed to a desire to establish better relations with the European Powers in the face of possible complications in Mexico, owing to the Benton case (p. [483]), and of danger from Japan. On March 5 he sent a Message to Congress strongly urging the repeal of the exemption. In his own judgment, he said, exemption was a mistaken economic policy from every point of view, and a plain breach of the Anglo-American Treaty of 1901; it was only in the United States that there was any doubt about the language of the Treaty, and the nation was "too big and powerful and self-respecting" to put a strained interpretation on its promises just because it had power enough to read them as it pleased. "The large thing to do is the only thing we can do—voluntary withdrawal from a position everywhere questioned and misunderstood." Were his request not granted, he would not know "how to deal with other matters of even greater delicacy and nearer consequence." This appeal was effective, and the Commerce Committee of the House favourably reported the Bill on March 6. It was, however, strongly opposed by a number of Democrats, among them Mr. Underwood, of Alabama, leader of the party in the House, and Senator O'Gorman, of Maryland; by the New York American and Mr. Hearst's other papers, and by the Irish-American Press, whose chronic suspicions of Great Britain were excited by the Ulster crisis. It was a sign of the disquiet aroused by the Bill that Mr. Page, the American Ambassador to Great Britain, was called to account by a resolution of the Senate for his speech at the London dinner of the Associated Chambers of Commerce, in which he was reported to have minimised the Monroe doctrine; but his explanation proved satisfactory.

While the House was busy with the Bill the Senate dealt with a proposed amendment to the Constitution, introducing women's suffrage on the lines of the famous 15th Amendment, and providing that the right of citizens to vote shall not be denied or abridged by the United States or by any State on account of sex. This was voted on March 19, by 35 to 34, and thus failed to obtain the necessary two-thirds majority. Amendments offered respectively by Senator Vardaman, of Mississippi, rescinding the franchise granted to negroes under the 15th Amendment to the Constitution, and by Senator Williams, of Mississippi, excluding negro women, were rejected by 19 to 48 and 21 to 44. Apart from the stock arguments against the proposal it departed from the practice, hitherto broken only by the 15th Constitutional Amendment, of leaving suffrage regulation to the separate States.

Another issue which now became temporarily prominent was that of the restriction of the consumption of alcoholic liquors. Early in April, the Secretary of the Navy, Mr. Daniels, took the final step in enforcing teetotalism on the Navy by issuing an order prohibiting the introduction from July 1, 1914, of alcoholic liquor of any kind into any naval vessel, establishment, or station, and holding commanding officers responsible for infringements of the rule. The men had long been deprived of their grog, and this order, which was issued on the advice of the Surgeon-General, extended prohibition to the officers, who would now be unable to offer wine when entertaining guests from foreign fleets. But a resolution was also introduced into Congress demanding prohibition throughout the United States of the manufacture of intoxicants "for beverage," or of their sale, by means of an amendment to the Constitution (p. [467]), and this resolution was the subject of more memorials, for and against, than any other issue before Congress.

To the Panama Tolls Bill the House showed itself favourable by passing a special closure rule limiting debate on it to fifteen hours (March 1), and defeating by 200 to 179 an attempt to rescind this rule (March 27). The Bill, however, aroused much opposition among the Democratic majority, notably from Mr. Underwood (Alabama), the Democratic leader in the House, Speaker Clark, Mr. Wilson's most formidable rival in 1912 for the Presidential nomination, and Senator O'Gorman in the Senate, while Senator Lodge and some other Republicans strongly supported it. The President's attitude was regarded in some quarters as the result of a bargain designed to conciliate Great Britain in view of the Benton case (post, p. 483), and of British dissatisfaction with the results of his policy of watchful waiting in Mexico; a view expressly repudiated by the President himself and by the Under-Secretary for Foreign Affairs in the House of Commons (March 29, 30). President Wilson's foreign policy in general, including the Colombian treaty (signed April 8, post, p. 461), was adversely criticised, and Mr. Roosevelt's friends urged him to attack the Administration on his return from his exploration in Brazil. However, the Bill was finally passed by the House on April 1 by 247 votes to 162. It went to the Senate, and was first dealt with by the Committee on Interoceanic Canals. The temporary unpopularity of the Administration seemed to be indicated by the success of Mr. Underwood in obtaining the nomination for Senator in Alabama, and by the return at Congressional bye-elections of a Republican in New Jersey and an anti-repeal Democrat in Boston. The New Jersey contest had been described by the President as giving the people an opportunity to express themselves as to his policy.

But public attention was now diverted to a new crisis in Mexico. A portion of the Atlantic Fleet had concentrated, after its winter cruise, off the Mexican coast; several ships had then left to refit, or for other reasons, and four remained: the Florida and Utah at Vera Cruz, the Connecticut and Minnesota at Tampico. On April 10 a party of bluejackets landed at the latter port to obtain gasolene; they were arrested by a Federal (Huertist) colonel and marched through the streets, but were eventually released with an apology. Admiral Mayo, the United States commander, demanded that, by way of reparation, the Mexican authorities should hoist the American flag and give it a salute of twenty-one guns. President Huerta replied by a proposal that the United States and Mexican flags should be hoisted together and saluted reciprocally, gun for gun, and that an agreement to that effect should be recorded in a protocol. The United States Government regarded this course as a recognition of the Huerta Government, and were willing only that the American firing should follow the Mexican. A time-limit (6 P.M. on April 19) was eventually fixed for General Huerta's compliance. The United States had also to complain of the arrest of a naval mail-carrier at Vera Cruz. On April 20 President Wilson read a message to Congress asking it to approve the use of "the armed forces of the United States in such ways and to such extent as may be necessary to obtain from General Huerta and his adherents the full recognition of the rights and dignity of the United States." This, he said, would not mean war with the Mexican people, but only with General Huerta and his supporters, and the object of the United States would only be to restore to the Mexicans freedom to set up their own laws and Government.

A joint resolution was introduced into both Houses embodying the President's demand, declaring that he was justified in the employment of the armed forces of the United States to enforce the demand on Huerta for unequivocal amends to its Government. It was passed in the House by 337 to 37, but before it had passed the Senate Rear-Admiral Fletcher was ordered (April 21) to seize the Vera Cruz custom house, so as to prevent the landing of munitions for the Huertists, expected from Havre by the German steamer Ypiranga. He first demanded, through the United States Consul, the surrender of the town; on receiving a refusal he landed a body of marines, who were fired on by snipers, and were assisted by the guns of the United States warship Prairie. Shells were fired also from the Utah, and eventually most of the Mexicans retreated to the west of the town, the rest sniping the invaders from the housetops. Next day, April 22, the American ships shelled other buildings occupied by snipers, together with the Naval Academy and the artillery barracks, and practically took the town.

The American people, as a whole, rallied to the support of the President. There was some war feeling, though hardly among the politicians; the President was generally backed by the Press, the Churches, and even the labour unions, though the Industrial Workers of the World threatened a general strike in the event of war. The joint resolution was passed, in a modified form, substituted in the Senate and accepted by the House; but the insult to the flag was an occasion for trying to end the anarchy in Mexico. A force of some 4,000 was embarked at Galveston, troops were also sent to defend the Mexican border against raids, the United States warships Louisiana and Mississippi were despatched to Vera Cruz, and a Bill was passed by Congress authorising the mustering of the National Guard and the Regular Army. General Carranza, however, disappointed American hopes by declaring that the seizure of Vera Cruz was an affront to the Mexican people, and demanding its evacuation; and in view of his attitude, the United States Government hesitated to seize Tampico. British and German subjects meanwhile were warned to leave Mexico, and General Huerta facilitated their departure; and gave Mr. Nelson O'Shaughnessy, the American charge d'affaires, his passport.

A temporary lull in the warlike preparations was now set up by the offer of mediation made by Argentina, Brazil, and Chile, which was cordially welcomed by President Wilson and took shape in the Conference at Niagara Falls (post, p. 484). An armistice was arranged meanwhile, and General Funston took over Vera Cruz from the naval authorities on May 1. The public funeral of some of the marines and bluejackets killed in the fighting (May 11) afforded the President another opportunity to emphasise his purpose. Going with the procession from Battery Park, New York, to the Brooklyn Navy Yard, he delivered an address, paying a tribute to the patriotism of the slain, and adding: "We have gone down to Mexico to serve mankind if we can find a way. We do not want to fight the Mexicans; we want to serve them if we can." In a war of service, he proceeded, it was a proud thing to die; and it was as hard, he thought, to do one's duty when men were sneering at one as when under fire. "When they shoot at you they can only take your natural life. When they sneer at you they can wound your heart." But a man ought to regard his conscience and the conscience of mankind.

During this lull in Mexican affairs attention was again directed to domestic problems. The anti-Trust Bills (p. [453]; consolidated, with some omissions, into one measure) made some progress, and were supplemented by a Railway Capitalisation Bill, providing that railroad stock and bond issues should require authorisation by the Interstate Commerce Commission, that facts concerning the issue should be made public by that body, and that "interlocking directorates" should require its authorisation. In financial quarters this measure was regarded as far too drastic. But the railroad interests were somewhat reassured by the favourable decision of the Interstate Commerce Commission on an application by the Southern railroads regarding an increase of rates. Further increases were permitted by the same body later in the year.

The Naval Appropriation Bill, passed by the House on May 7, and subsequently by the Senate, authorised a building programme of two battleships, six destroyers, and eight submarines. A third battleship, it was eventually arranged, was to be provided out of the proceeds of the sale of the Mississippi and Idaho to Greece (p. [459]).

While the majority in Congress struggled with the anti-Trust programme, the Republican Opposition was provided by the disappointing financial results of the new tariff with fresh material for attacking the Administration. The value of imports of manufactured articles from October 1, 1913, to April 1, 1914, as compared with the corresponding period of 1912-13 had increased from $215,000,000 to $228,000,000; exports of such articles had fallen to $541,000,000 against $582,000,000; materials for manufacture imported had fallen from $517,000,000 to $409,000,000; Customs receipts had fallen from $165,000,000 to $140,000,000. The deficit for the year had already reached $37,000,000, and a few weeks later the new income tax proved to be likely to yield only $30,000,000 for the first ten months of its operation, as against estimates before its introduction by its projectors and the Treasury respectively of $80,000,000 and $54,000,000.

The position of the Administration was not bettered by the course of events in Mexico. The Constitutionalists, whose success it favoured as the more legitimate claimants of authority, committed excesses at Saltillo, Tampico and elsewhere; and the alleged murder after torture of Private Parks, who had strayed into the Huertist lines at Vera Cruz, stimulated the cry for drastic intervention. The Constitutionalists' refusal to accept an armistice or to submit to the findings of the Niagara Conference, together with the growing differences among their leaders, gave little hope of a permanent pacification; and ultimately, at the end of June, the conference broke up, leaving the Huertists and Constitutionalists to arrange for another conference composed of their representatives, which should deal with the establishment, composition, and programme of a provisional Government.

However, the Administration obtained some success elsewhere. The Panama Tolls Bill was debated in the Senate at considerable length; but some waverers were conciliated by an amendment moved by Senator Simmons (North Carolina), providing that the repeal should not impair American rights under the Hay-Pauncefote treaty, and on June 11 the Bill passed by 50 to 35—the majority consisting of 37 Democrats and 13 Republicans, the minority of 23 Republicans, 11 Democrats, and a Progressive. Among the rejected amendments was one referring the Hay-Pauncefote treaty to the Hague Court for interpretation. The Bill was accepted by the House as amended, and signed by the President on June 15. The honour of America was thus vindicated in the view of Europe; and the way was cleared for the completion of the programme of anti-Trust legislation and for the adjustment of relations with Colombia and other Spanish-American States.

Another success for the Administration was the authorisation by Congress of the sale to Greece of the battleships Idaho and Mississippi, launched in 1905, and considerably inferior, of course, both to the newer battleships of the United States and to the Dreadnought just purchased by Turkey from Brazil. They were, however, of 14,465 tons each, could steam nearly seventeen knots, and carried twelve-inch guns. They were to be sold at cost price ($11,726,000) to pay for a Dreadnought; and the sale was partly intended to enable Greece to be a match for Turkey, and so to avert a Greco-Turkish war. The sale was sanctioned by Congress owing mainly to President Wilson's influence.

Meanwhile the anti-Trust legislation had been partly postponed and considerably modified by the Senate—notably by an amendment designed to exempt labour unions and agricultural and mutual aid associations from being treated as combinations in restraint of trade under the Sherman Law; and business did not improve. It was true that the railroad world was encouraged by the decision of the United States Supreme Court (June 8) that a State must not impose, even within its own borders, rates which conflicted with the fair operation of those fixed by the Inter-State Commission for similar services in traffic crossing the State border; but the general depression was ascribed to the uncertainty of legislation, and the President's repeatedly expressed view that the depression was "merely psychological" was not generally shared. A fresh shock was given to the hopes of revival by the largest failure on record in the dry goods trade (June 27), that of H. B. Claflin & Co., an immense wholesale house, with liabilities of $35,000,000, though the assets awaiting liquidation were estimated at $44,000,000. The failure, however, was mainly caused by financing retail customers and inability to raise money on the debts due to it, and a reorganisation scheme was arranged later.

The situation in politics and business gave Mr. Roosevelt an excellent opportunity for attack. On his arrival from Spain (June 25) he denounced the President's Colombian and Mexican policy; and a few days later (June 30) he spoke at Pittsburg in favour of the candidature for the Senate of Mr. Gifford Pinchot, who was standing against Senator Penrose, Republican. After attacking the Democrats for tariff reduction, and for their "wretched" foreign policy, he denounced the Republican managers for splitting the party, and promised that the Progressives would have a scientific Tariff Commission, and would recognise that big business was not necessarily purely pernicious. The tone of his speech was less Radical than in former years, and seemed to hint at a possible fusion of the Progressives with a reformed Republican party.

The passing of the Panama Tolls Act had cleared the way for the settlement of other foreign questions. Mr. Bryan was anxious to obtain the ratification of his "Peace Commission" Treaties, supplementing the existing Arbitration Treaties by providing for the submission of disputes between the countries who were parties to them to a permanent International Commission (which was allowed a year within which to report) before going to arbitration before the Hague Court. This Commission would be composed of five members, two appointed by the respective Governments from their subjects, two from another country, the fifth from another neutral country by agreement between them. The Commission's Report would not be final, as in that case the prerogatives of the Senate would have been infringed. The British treaty was to be delayed for submission to the Dominion Governments, but a number of similar treaties with the minor Powers on both sides of the Atlantic were submitted to the Foreign Relations Committee of the Senate.

But there were more troublesome questions ahead. The Mexican tangle was somewhat simplified a little later by the retirement of General Huerta (July 23, post, p. 485), but the Colombian Treaty, which gave Colombia $25,000,000 as compensation for her loss of Panama in 1903, and contained words which looked like an apology for the action of the United States Government on that occasion, was regarded by many politicians on both sides as both costly and humiliating; while the Nicaragua Treaty provided for the loan to that State (in return for the right of constructing a canal by the San Juan route and of using certain islands as a naval base) of $3,000,000 for certain urgent items of expenditure and the establishment of a sort of financial Protectorate. This was regarded as doubtful policy, and as likely to benefit certain financiers more than either of the Powers concerned, while the Diaz Government in Nicaragua was believed to be merely the creature of the United States. There was trouble, moreover, in Santo Domingo, for which the United States had a certain responsibility through having lent it financial administrators, and in Hayti, where German creditors were pressing the Government, and revolution was impending; and marines were sent in the middle of July to Cuba, for use if necessary in either Republic.

The anti-Trust legislation, however, was not passed yet, and, while business men feared its effects, the need of further regulation, especially in the matter of interlocking directorships and stock and bond issues, was exhibited by the report of the Interstate Commerce Commission on the affairs of the New York, Newhaven, and Hartford Railroad, once among the best managed systems in America, now, by agreement with the Government, in voluntary liquidation. The inquiry had been undertaken at the direction of the Senate, and the evidence, especially that of Mr. Mellen, the President, had been sensational. Substantially the Directors were found to have used illicit and corrupt means, including bribery, extortionate commissions, and excessive payment for properties purchased, to obtain a complete monopoly of traffic in New England. They had increased the Company's liabilities between 1903 and 1912 from $93,000,000 to $410,000,000, and had lost from $60,000,000 to $90,000,000 of the stockholders' money. The directorate contained representatives of the New York Central and Pennsylvania Railroads, of the United States Steel Corporation, the Standard Oil and Pullman Companies, and the stockholders seemed to have less representation than any other interest.

Meanwhile the President had completed the arrangements necessary for giving effect to the Currency Act (A.R., 1913, p. 459). In April the twelve cities in which the district banks were to be were determined as follows: Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas (Texas), and San Francisco. The selection of Dallas instead of New Orleans or Galveston, and of Cleveland instead of Cincinnati, caused some comment, but it was explained that considerations of the wealth and commercial importance of a city might have to be overridden by that of the direction of trade. The Presidency of the Board was declined by Mr. Olney (Attorney-General in the Cleveland Administration of 1893-97), probably in view of his age; and ultimately (June 15) the nominations were sent to the Senate as follows: Charles S. Hamlin, Boston, first Assistant-Secretary to the Treasury, two years; Paul M. Warburg, of Kuhn, Loeb & Co., an important banking firm, four years; Thos. D. Jones, Chicago, six; W. Harding, Birmingham, Ala., eight, and A. C. Miller, San Francisco, ten years. Mr. Warburg and Mr. Jones, however, were objected to by the Senate, on the ground that they were too closely connected with "big business," Mr. Warburg being a financier and Mr. Jones a director of the International Harvester Company, against which proceedings were pending under the anti-Trust Law; and Mr. Warburg resented being cross-questioned by the Senate Committee. They requested the President to withdraw their nominations, though Mr. Warburg afterwards gave way and was confirmed; so that by the end of July the Board had not yet got to work.

The war took America by surprise as it did Europe, and almost produced a tremendous financial crisis. Practically all markets were closed, and shipping and exchange, for a short time, were utterly disorganised. On July 31 the Stock Exchange did not open, the news received during the night indicating that an immense amount of stock would be offered not only from American but from European holders, and that consequently a drain of gold would be set up from the United States.[29] Cargoes accumulated at the ports, inasmuch as the banks would not negotiate bills of lading on uninsured freight, and insurance was paralysed. Five hundred million dollars of emergency currency was at once printed, for use under the Aldrich-Vreeland Act of 1908, which permitted sudden expansion in emergencies (A.R., 1908, p. 446), and the Secretary of the Treasury promised the assistance of his Department to the utmost extent of its powers. A Bill was hastily passed by the Senate, authorising the Secretary of the Navy to establish naval lines to carry mails, passengers and freight to South America and Europe, a course, however, which proved unnecessary owing to the activity of the British Fleet in recovering command of the sea.

But the Mauretania and Cedric had to put into Halifax; the German liner Kronprinzessin Cecilie, with a large consignment of gold on board for London, was stopped on her way by wireless orders, and crept back without lights to Bar Harbour, Maine, where she remained for some months through fear of capture; eventually she made her way through coastal waters to Boston. The plight of Americans in Europe was serious (p. [187]). Even more completely than British tourists, they were held up by the worthlessness, for the moment, of all drafts and means of credit, and were stranded, not only on the Continent, but in Great Britain. The Administration, the Embassies, the Consulates, and private and voluntary effort, worked hard to get them home; the American cruiser Tennessee brought $250,000 in gold to facilitate the process (Aug. 20); and special trains (Aug. 26 and 29) took 3,000 from Geneva to Paris; these were required to stay in specified hotels, and to leave Havre for New York on appointed dates. An American Committee in London did admirable work in advising and repatriating others, and special trains were also run from Germany to Rotterdam and from Austria to Genoa, whence special steamers were despatched to New York.

At the outset of the war President Wilson tendered his services for mediation at once or at any future time to all the European Powers involved; but the offer was premature and brought no definite response. Strict neutrality was observed, though a few German liners, anticipating the declaration of war, put to sea with stores and coal for the converted liner-cruisers; the coast was patrolled by destroyers, and care was taken that wireless stations should not be used for communicating with the German Fleet. From the first, except among German-Americans and a few Irish extremists, American sympathy was with the Allies, and in spite of the persistent but extremely maladroit propaganda carried on by the German Ambassador, Count Bernstorff, Professor Münsterberg of Harvard, Dr. Dernburg, the former German Colonial Secretary, who was well acquainted with American business circles, and some German financiers, it became more and more positively anti-German, especially after the news of the atrocities in Belgium and the destruction of Louvain. The Belgian Mission (p. [371]) was received by the President, and the statements of its members made a profound impression and set up a great movement to relieve Belgian distress. The German Emperor telegraphed early in September to President Wilson, protesting against the use imputed to the Allies of dum-dum bullets, a use of which President Poincaré telegraphed a denial. But President Wilson declined to commit himself in his replies, whether to the Belgians or to the Emperor, and this reserve was strongly condemned in view of the German atrocities. An active agitation for peace was initiated by Mr. Hearst, which culminated in a meeting (Sept. 20) in New York addressed by the Vice-president, the Speaker of the Lower House of Congress, and the President of the Steel Corporation, but it was, of course, without result. Later a shipload of Christmas gifts for soldiers' children in the belligerent countries was sent to Great Britain by the United States naval auxiliary vessel Jason. An immense amount of Red Cross work was also done, and relief sent to sufferers in practically all the countries most affected by the war. By Presidential proclamation, October 4, was appointed as a day of prayer for the peace of Europe.

On September 4 the President read a Message to Congress, advising additional taxation to the extent of $100,000,000, of which $20,000,000 would be spent on war insurance, ship purchase, and bringing home Americans in Europe. A loan of $100,000,000 was raised without difficulty by New York City in short-term notes to meet foreign obligations maturing in the near future.

Gradually the economic disturbance righted itself, with some assistance. The Government undertook to insure cargoes against war risks, appropriating by Act of Congress $1,000,000 for that purpose. The difficulty of sending gold abroad was met, partly by the shipment on the Tennessee to Paris (p. [463]), and more fully by depositing a large sum in gold at Ottawa on account of the Bank of England, so that bills could then be drawn against it as usual; and the enormous wheat crop, followed by immense supplies of munitions of war and stores to Great Britain and France (and even to Russia, via Seattle and Vladivostok), facilitated a readjustment of the situation. The product most depressed was cotton, in view of the shortage of factory labour caused in Europe by the war, though its export to Germany was not hindered before the new year, and a "Buy a Bale" movement was started to relieve the producers. The Ship Purchase Bill encountered unexpected difficulties, partly because the Seamen's Bill, also pending, would make the working of American ships more costly, still more because the Allies objected to the purchase by the United States of the interned German liners, the only shipping available, and the question was not settled at the end of the year.

Some temporary difficulty arose in October through the seizure by British cruisers of ships belonging to the Standard Oil Corporation. The Brindilla had been transferred since the war began from the German to the American flag, but Great Britain treated the transfer as invalid, and the vessel was taken into Halifax; the John D. Rockefeller (which had always been American), bound under the American flag for Copenhagen, was also stopped, but released, as Denmark had prohibited the export of oil to Germany. At the end of the year the United States Government made a temperate protest against the British detention of American ships and seizure of cargo on them (Dec. 30).

The war served Mr. Roosevelt as an example of the futility of such engagements as the arbitration treaties just signed by the Administration. His own plan for maintaining the peace of the world was an improved Hague Court, whose decisions the nations should pledge themselves to carry out by force.

The session of Congress closed on October 24. As there had been no break between the session of 1914 and the ordinary session preceding it, Congress had been sitting continuously (with very brief recesses) for the longest period on record. The record of work was remarkable. Following the Tariff and Currency Acts of 1913, there were the two Acts representing President Wilson's anti-Trust programme—the Trade Commission Act, creating a tribunal to arbitrate between commercial disputants, and the Clayton anti-Trust Bill, preventing interlocking directorates and otherwise controlling monopolies; the Panama Tolls Act, the Alaska Railroad Act, providing for the construction and working by the Government of 1,000 miles of railroad, telephones and telegraphs; an Act regulating dealings in cotton "futures," and the conclusion not only of twelve arbitration treaties (p. [460]) but of twenty-three Peace Commission treaties with Great Britain, Norway, the Netherlands, Portugal, Switzerland, Denmark, Italy, Salvador, Guatemala, Honduras, Nicaragua, Bolivia, Persia, Costa Rica, Venezuela, Chile, Argentina, Brazil, Peru, Paraguay, France, and Spain. Besides this there was the emergency war legislation, comprising the Emergency Currency Act (p. [462]); the insurance of war risks, to which $1,000,000 was devoted; the appropriation of $1,000,000 for special diplomatic and consular services and the transport home of American citizens whose return was hindered by the war; and the emergency war taxation, which was estimated to produce from $94,000,000 to $107,000,000 annually. This included taxes on beer ($1.75 a barrel), whisky (5 cents a gallon), American still wines, champagne (25 cents a quart), bankers ($1 per $1,000 of capital, surplus, and undivided profits), pawn-brokers, commercial brokers, commission merchants, proprietors of places of amusement, dealers in leaf tobacco, and cigar and cigarette manufacturers. There were also internal revenue (stamp) taxes on a few articles such as perfumery, on bonds, promissory notes, bills of lading, conveyances, telegrams, telephone messages, marine, fire, and casualty insurance, steamship tickets to foreign ports, and parlour-car berths and seats.

Among the measures left over to the next Congress were the Immigration Bill (p. [454]), the Philippine Government Bill, and the Rural Credits Bill (p. [453]), which had not passed the Senate; a Bill empowering the Treasury to deposit $250,000,000 in banks in the tobacco and cotton States (to facilitate loans to the planters); constitutional amendments respectively establishing women's suffrage throughout the Union, which had been reintroduced after its failure in the Senate, and prohibiting throughout the Union the sale or manufacture of intoxicants "for beverage" (p. [455]); and the Bill empowering the regulation of railroad stock issues by the Interstate Commission. So were the treaties with Colombia and Nicaragua, which the Senate had not yet ratified, and Peace Commission treaties with China, Panama, the Dominican Republic, and Russia.

The President and the Democratic majority in Congress had thus held together—except, to some extent, on the Panama Tolls Bill—and had carried much of their programme. But the November Congressional and State elections showed a very marked reaction against the Administration, and a rally in the Republican party, emphasised by the disappearance of the semi-independent "Progressive Republicans," and a general return of the Progressives to the Republican fold. The Democratic majority over all the other parties in the House together fell from 141 to 31; and in some of the Eastern and Middle-Western States there was a Republican "landslide." New York State, New Jersey (the President's own State), Illinois, Wisconsin, and eleven other States which had been Democratic in 1912 went Republican; Michigan, Pennsylvania and Washington reverted from the Progressives to the Republicans; New York, to the general surprise, elected a Republican Governor. The Progressive numbers in the House fell from fifteen to seven, though Governor Hiram Johnson secured a personal triumph by his re-election in California. Women's suffrage was voted on in seven States and defeated in five, in spite of much agitation just before the election. A Socialist was elected to Congress from New York City, the first from any Eastern State.

This sixty-third Congress, however, would not assemble earlier than the following spring in any case, and meanwhile the sixty-second met on December 7. Besides the legislative programme just mentioned, the European War forced on its attention the question of national defence. The Army League and the Navy League were agitating for an increase, and Congressman Gardner (Republican), of Massachusetts, was pressing for an inquiry into the "preparedness" of the nation for war. Before the session opened President Wilson let it be known that he deprecated such an inquiry, as likely to create an unfavourable impression abroad; and he took the same line in his Message (Dec. 8). He dealt mainly with the war, declaring the dearest hope of the nation to be that its own character as the champion of peace and concord would shortly, in God's providence, bring it an opportunity such as had seldom been vouchsafed to any nation—"an opportunity to counsel and obtain peace in the world and the reconciliation and healing settlement of many matters that have hitherto cooled and interrupted the friendship of nations." He urged the country to develop its resources so as to supply the needs set up by the appalling destruction wrought by the war; and he specially recommended the Ship Purchase Bill. He urged also a larger measure of self-government for the Philippines, and a survey of the Alaska coasts. He declared that, as regarded national defence, they must depend, not on a standing army or a reserve army, "but upon the citizenry, trained and accustomed to arms." They must, in short, develop the Volunteer National Guard—the State militia system. "More than this would merely mean that we had lost our self-possession, been thrown off our balance by a war with which we have nothing to do. A powerful Navy we have always regarded as our proper and natural means of defence, but who shall tell us now what sort of Navy to build?... We have not been negligent of national defence." They would profit by current experience, and what was needed would be adequately done.

The War Secretary's annual Report next day, however, declared the Army inadequate. The total maximum force available—Regulars and National Guard—would be but 158,000, and it would take six months to train additional volunteers; the delay, with a prepared enemy, would be fatal. He recommended the immediate filling up of the existing organisation, and fresh legislation dealing with enlistment and the reserve, both in the Union and in the States. Artillery ammunition was inadequate, and the aviation corps should be largely increased. The Secretary of the Navy recommended a building programme for the coming year of two Dreadnoughts, six destroyers, eight or more submarines, one gunboat, and one oil fuel ship; he declared that expert opinion favoured the continuance of building Dreadnoughts, and recommended that five million dollars should be spent on the air service.

A vigorous agitation was now started for and against the increase of armaments, but more interest was taken in the debate and division in the Lower House of Congress (Dec. 22) on the constitutional amendment, imposing "nation-wide prohibition" of the sale or transport of alcoholic liquors for "beverage purposes" in the United States and all territory subject to the jurisdiction thereof. Provision, however, was made for continuing the supply of intoxicants for sacramental, medicinal, and industrial purposes. The resolution proposing this amendment (which would have had to be ratified by the legislatures of two-thirds of the States to become valid) opened with a preamble strongly denunciatory of alcohol as demonstrated by scientific research to be a narcotic poison, imposing a "staggering economic burden" on the people, and leading to crime, pauperism, insanity, disease, and national degeneracy. The resolution was moved by Mr. Hobson, of Alabama, and received 197 votes against 189, but it required the support of a two-thirds majority of those present, or 258, and therefore fell through. It divided all the parties; the Ayes comprised 114 Democrats, 67 Republicans, 12 Progressives, and 4 Independent Republicans, the Noes 141 Democrats, 46 Republicans, 1 Independent Republican, and 1 Progressive. Two alternatives were defeated, one to submit the amendment to the States instead of the Legislatures, the other prohibiting the importation of liquor into any State, thus localising liquor manufacture. Both sides professed themselves satisfied with the result.

The celebration of the completion of a century of peace with Great Britain fell through, owing to the war. Committees for its promotion had been established in both countries, and the Sulgrave Manor House, the old house of the Washington family in Northamptonshire, had been purchased in January by the British Committee. The persistent British refusal to participate officially in the Panama Exhibition at San Francisco hampered the movement, and on June 30 the House of Representatives refused by 187 to 52 to vote money for the celebration.

In State politics—a subject of great interest to students of political science—very few points can be mentioned here. The "eugenic" marriage law in Wisconsin, requiring a medical certificate of sound health as a condition of marriage, was declared unconstitutional by a State Court; so was an ordinance of a North Carolina city (Winston-Salem) segregating the coloured population. The November elections showed the activity of reformers: twenty-three States voted on one or more amendments to their Constitutions; seven on women's suffrage; six on liquor traffic prohibition; in each of the two latter cases five States decided against change.

Throughout the year the mining region of Colorado was almost in a state of civil war, owing to a coal-miners' strike. In September, 1913, the Miners' Union had called out some 11,000 men, on the masters refusing their demands, which included liberty to buy provisions and supplies where they pleased, and to choose their own doctors, the right to elect their own check-weighers, better working conditions and pay, an eight hours' day, and recognition of the union. Strike-breakers had been imported and the State militia (which was said to be controlled by the owners) called out to preserve order, and in April it destroyed and burnt tent colonies sheltering the strikers and erected on land leased by the union; women and children were killed, and order was restored by Federal troops. Congress attempted to promote a settlement, but ineffectually; President Wilson (May 10) ordered the disarmament of all civilians; the State Legislature did nothing beyond authorising a bond issue to pay the militia, closing saloons, and forbidding the carrying of arms; mediation failed; and in September President Wilson wrote to both sides urging a settlement on specified conditions—the enforcement of the mining laws, the prohibition of intimidation whether of union or of non-union labour, the continuance of work during the investigation of grievances, and an elaborate plan for such investigation with an ultimate appeal to a Commission of three which was to see that the conditions were maintained. The owners made difficulties, but the President appointed the Commission, and the unions ended the strike. In connexion with it, the Industrial Workers of the World raised a disturbance in New York, and Mr. John D. Rockefeller, junior, one of the leading owners, had his residence picketed by Socialists.

Strikes of engineers and firemen on the Western and Eastern railways was averted respectively at the end of July, when President Wilson induced both sides to accept a plan proposed by the Federal Board of Mediation, and in December by arbitration. The murderers of Rosenthal in New York were executed on April 13, and Becker was again convicted after a second trial (A.R., 1913, p. 467). Their lives had been prolonged by the ingenuity of their lawyers. Thaw's extradition was also confirmed in December by the Supreme Court (A.R., 1913, p. 468).

The Cape Cod Ship Canal, connecting Buzzard's Bay with Barnstable Bay, was opened on July 29. It was a joint-stock undertaking, and had cost $12,000,000. [For the Panama Canal see post, p. 486.]

Dependencies. From Cuba there was no news of importance. In Porto Rico the November elections—the quietest on record—resulted in large gains for the Republican party, which desires American citizenship and eventual admission to the Union. It obtained sixteen seats in the Lower House of the Legislature against nineteen held by the anti-American party. The United States Government had previously appointed two natives of the island to the Executive Council, giving the natives the majority in it, and a Bill for giving the island popular Government had been favourably reported in the Congress. In the Philippines Governor Burton Harrison's concessions to the natives, and the reductions of official salaries, which drove many Americans to retire from the service, roused severe criticism in the United States, and a Bill promoted by the Administration, promising the islands independence, "as soon as a stable Government shall be established in the Archipelago," was passed by the House of Representatives (Oct. 14) by 211 to 59, but was not taken up by the Senate. At Christmas an unimportant and abortive rising, promoted by an agitator named Ricarti, was reported to have been suppressed at Manila.

II. CANADA.

Parliament met on January 14. Seven new members were introduced, six of them supporters of the Government. Among them was Hon. Arthur Meighan, the new Solicitor-General.

In his speech from the Throne, H.R.H. the Duke of Connaught expressed his gratitude for the public sympathy extended to himself and the Duchess during her serious illness. Reference was also made to the financial stringency from which the country had been suffering, but which was passing away. The necessity for readjusting the representation of the people in Parliament, after the last Census, was stated. An increase in the number of Senators from Manitoba, Saskatchewan, Alberta and British Columbia was foreshadowed. No mention was made of any Naval programme. The debate on the Address began on January 19. Sir Wilfrid Laurier, the Opposition leader, moved an amendment regretting that, while the Speech admitted that business is in a depressed condition, there was no indication on the part of Ministers of a determination to take any steps towards relieving the situation. Replying to him on January 20, the Finance Minister, Hon. W. T. White, so far indicated the policy of the Government as to point out, (1) that "Free Food," as advocated by the Opposition, meant Free Trade; (2) that Free Trade had long been abandoned by both parties in Canada; (3) that the Government did not propose to depart from a policy of reasonable Protection; (4) that the remedy for the high cost of living—which was universal—was an increased universal production; (5) that the Government had voted $10,000,000 for the purpose of increasing production.

On January 21 the two Houses adjourned in token of respect to the memory of Lord Strathcona (see post, Obit.). The Prime Minister and the leader of the Opposition joined in eulogising the late Peer; and the Prime Minister read to the House of Commons a despatch from the Colonial Secretary conveying the deep sympathy of the Imperial Government, and closing as follows:—

His name has been for many years a household word among us embodying to all the thought of Canada and her marvellous progress, as well as of his own notable career distinguished by large public usefulness and magnificent liberality, and his memory is assured of an honoured and abiding place in the annals of the Dominion, to which he devoted his faithful service to the end.

Laudatory speeches were delivered also in the Senate.

The absence of any mention of a Navy Bill in 1914 was commented on by the Opposition as proof that no "emergency" existed to justify the Government's Bill of 1913 (A.R., 1913, p. 473). The Government replied in effect that it was useless to bring in a Bill in 1914 in the face of a determinedly hostile Senate; but that the policy and promise of 1913 would be carried out in due time by the Government.

The first division on the Amendment to the Address was taken on January 27, giving the Government a majority of 44. A second amendment was at once moved, regretting that the Speech gave no indication of any intention to take steps to secure free access to the markets of the United States for the wheat and wheat products of Canada, by removing the duty on wheat and wheat products coming into Canada from the United States. This was defeated (Jan. 29) by a majority of 45.

On January 27 the Postmaster-General announced that the Parcels Post system, which had been long under consideration, would be put into operation on February 10. The first parcel was mailed to the Duke and Duchess of Connaught at midnight on February 9.

On January 29 the Estimates for the year ending March 31, 1915, were tabled. A general reduction of $12,000,000 was a marked feature. The total was $190,735,176; there was a decrease on the Naval item of $150,000 and of $71,905 on Militia. Subsequently, on May 27, an additional sum of $17,438,000 was brought down, making the total $208,173,176.

On February 10 the Bill for the Redistribution of Seats in the House of Commons was brought down by the Prime Minister. This had been looked for as probably the most important measure of the session. It had been in the hands of a large Committee for some weeks, and had been reported unanimously. The general result of the Act (Chap. 51, 1914) is as follows: Ontario is to have 82 members; Quebec 65; Nova Scotia 16; New Brunswick 11; Manitoba 15; British Columbia 13; Prince Edward Island, 3; Saskatchewan 16; Alberta, 12; Yukon Territory, 1; in all 234 members. On the existing representation, Ontario lost 4 seats; Quebec (under the British North America Act of 1867) remained at 65; Nova Scotia lost 2; New Brunswick lost 2; Manitoba gained 5; Saskatchewan gained 6; Alberta gained 5; British Columbia gained 6; Prince Edward Island lost 1; Yukon remained with one seat as before. The figures show how population and political power are shifting to the West.

On February 12 the Minister of Railways laid on the table of the House the report of a Commission to investigate the construction of the Transcontinental Railway, under the previous Government. The report was long and sensational in character. The conclusions of the Commissioners were substantially that the Transcontinental Railway Commission, the Grand Trunk Pacific Railway and those having charge of the construction did not consider it desirable or necessary to practise or encourage economy in construction, and that, without including the money unnecessarily expended in building the railway east of the St. Lawrence River, $40,000,000 at least was needlessly expended in the building of this road. The cost of the unnecessary Eastern Section was estimated at $35,000,000; and thus the sum total of undue expenditure was stated at $75,000,000. The Eastern Section of the road was held by many persons on both sides to be a needless duplication of the Intercolonial Railway. The road was taken from the control of the Special Commission which had thus over-expended on it, and was completed and finally handed over to the Minister of Railways by Major Leonard, C.E., whose successful labours were highly appreciated by the public.

The Opposition were not satisfied with the report of the Commission, and on March 25 the former Minister of Railways moved, declaring that the Report was "so wilfully partisan and misleading as to be wholly unreliable," that the manifest object of the Commissioners was "to misrepresent for party purposes rather than to investigate in the public interest, without regard to the serious consequences to the country or this great national undertaking; and that for the appointment of such Commissioners, and for accepting and endorsing their report, the Government deserved the severe censure of this House." This motion was vehemently debated till Thursday, April 2, when it was rejected by 105 to 67.

On April 7 the Budget speech was delivered by Hon. W. T. White, the Minister of Finance. Many minor tariff changes were announced, but in general, as indicated by the Minister in his speech on the Address (p. [470]), the Protective policy was maintained. The demand made from various quarters for "Free Wheat" was refused. The Government asked for power to increase the existing surtax to 20 per cent, if needed. The duty on agricultural implements was reduced from 17½ to 12½ per cent. The large revenue and unusual surplus of 1912-13 was not maintained; and the revenue for the year ending March 31, 1914, would therefore be less and a large capital expenditure would have to be provided for. The sum of $56,404,231 had been borrowed on satisfactory terms. (The events of the next few months, of course, confounded all calculations. The revenue to the end of December, 1914, was only $99,635,943, as against $127,571,762 at the same date in 1913, a shortage of $27,935,819. The total net debt to the end of 1914 had increased by $73,182,060. The borrowings of the Government under the authority of the legislation of the War Session in August must have been large; but no full account would be given until the presentation of the Budget of 1915.)

The trade of the Dominion was, of course, subject to some fluctuations. The total aggregate trade of the year ending March 31, 1913, was $1,085,264,449. For the year ending at the same date 1914, the amount was $1,129,744,725. For the seven months of the fiscal year 1914-15 (i.e. from March 31 to Oct. 31) the total aggregate trade was $640,171,557. The effect of the war on the aggregate trade cannot be seen accurately till the Budget is delivered or the Customs statistics published in the spring of 1915.

The debate on the Budget was not concluded before the Easter recess. On the reassembling of the House on April 15 it was resumed, and continued till April 23, when the leader of the Opposition moved an amendment declaring that "in view of the prevailing economic conditions of the country, it is advisable to place wheat, wheat products, and agricultural implements on the free list, and, without doing injustice to any class, steps should be taken to alleviate the high cost of living by considerate removal of taxation." This amendment was defeated by a majority of 42.

The serious question of relief to the shareholders of the defunct Farmers' Bank was the subject of prolonged debate. On April 24 it was announced that the Government would satisfy all the depositors. The bank had been started on insufficient capital; and official recognition was given to it on what turned out to be false pretences. The results were disastrous, and the general manager was prosecuted and imprisoned. The new Government issued a Royal Commission to investigate the affairs of the bank, and, as a result, decided to pay the depositors. Resolutions and a Bill based on them were carried in the Commons by the usual Government majority. But on June 8 the Bill was thrown out in the Senate by a non-party vote of 32 to 25, several Government supporters voting against the measure.

One of the most serious questions of the session related to the affairs of the Canadian Northern Railway. Aid had become necessary to enable the company to carry on its great and varied industries. The Government of Canada had already assumed large responsibilities in guaranteeing the mortgage debenture stock of the company, and in payments for construction. On April 28 the Government brought down its proposals for relief (see Journals of Commons, 1914, p. 489; and Hansard Debates, May 13, sqq.). The proposal of the Government was to guarantee the payment of principal and interest on securities of the company to the extent of not more than $45,000,000; taking security by means of a Trustee and Trust Deed over all the property and interests of the company and all its subsidiary companies. Some reluctance to agree to these terms was visible among the Government's supporters, and two prominent Conservatives refused to support them. Some time elapsed before the complicated series of statements made by the company, including railways, steamships, bonds, shares, terminals, etc., could be understood (see Votes and Proceedings, 1914, p. 859). The total liabilities of the company to the Government were calculated at about $197,000,000. The actual debate began on May 13. The Prime Minister's speech was marked by the quotation for public use of messages of approval from the Premiers of Alberta, Saskatchewan and Nova Scotia, all Liberals, but in whose Provinces the Canadian Northern had large interests. The "six months' hoist" (equivalent to rejection) was moved by Mr. E. M. McDonald for the Opposition. The debate was maintained till May 19, when the Opposition motion was rejected by 111 to 64. In Committee various other amendments were moved, all of them defeated by majorities of from 40 to 44. A Bill was introduced based on the Government resolutions; it was passed in the Commons on June 2 by 85 to 38; and in the Senate on June 9 by a non-party majority of 40 to 17.

On June 1 notice was also given of a guarantee of interest on $16,000,000 bonds of the Grand Trunk Pacific Railway to aid in the completion of the road, the Government taking sufficient security. Owing to the outbreak of the war in August, these various guarantees are understood to have been of little value on a money market where all available funds were wanted for war purposes; but the actual results had not been made public at the close of 1914.

On May 8 it was announced from England that H.S.H. Prince Alexander of Teck was to succeed Field-Marshal H.R.H. the Duke of Connaught as Governor-General. The announcement was received with general approval. The speech which the Prince made at the Canada Club, in London, on May 28, was widely copied in the Canadian Press. Owing to the war, the Duke of Connaught consented to remain at the head of affairs, while Prince Alexander went on duty to the front.

An important Act passed during the session was the British Nationality, Naturalisation and Aliens Act (Chap. 44, 1914). This Act remedies a state of things which caused inconvenience throughout the Empire. After some years of discussion with the Home Authorities and the other Colonies, it is now provided that a colonial certificate of naturalisation shall be effective throughout the British Dominions. The applicant for a certificate must have a complete knowledge of English or French, The Canadian Act is based on the British Act (p. [209]), 4 and 5 Geo. V. cap. 17.

On May 29 the announcement was made of the terrible disaster to the steamship Empress of Ireland, and the loss of over a thousand lives (Chron., May 29). The Government at once began a Canadian investigation; and a Royal Commission, including a British representative, was appointed to make a searching inquiry. There was the usual crop of reports, assertions, contradictions and explanations. The subject was however dealt with prudently in Parliament and there was no useless debate. The Royal Commission consisted of Lord Mersey, Sir Adolph Routhier and Chief Justice McLeod of New Brunswick. The sittings were held at Quebec; and many counsel, English, American and Canadian, were engaged. The Report of the Commission placed the blame for the collision on the officers of the Storstad (see p. 599, Sess. Paper No. 21b, 1915). Extensive litigation has been going on since the Report was presented, and the amounts involved are large.

The session closed on June 12 with a degree of excitement and confusion which continued for some days after. There had been much discussion between the two parties regarding the Representation Bill, which was eventually passed in both Houses. But the increase in the number of Senators from the West had to be provided for by Resolution, praying the Imperial Parliament to alter the British North America Act, 1867, so as to enable the new Senators to be appointed. When the measure went to the Senate, the Act relating to the increase in the membership of the House of Commons was accepted. But the proposals regarding the increase of the Senate did not meet with the approval of the majority in that House, which was still opposed to the Administration. An amendment to the effect that the increase in the number of Senators should not take place till after the next general election, was refused by the Government. An accusation of bad faith was made by the Government against the Opposition in regard to an alleged agreement to pass this Bill and Resolution at the same time as the Representation Bill. This accusation was denied. Controversial statements as to this agreement were issued after the close of the session, by the Premier and the leader of the Opposition. And there the matter ended, to be taken up no doubt in the session of 1915.

On June 11, the day before the close of the session, both houses agreed unanimously on an address to H.R.H. the Duke of Connaught, Governor-General, on what was at the time thought to be his last official appearance in Parliament. This address was presented subsequently to the proceedings at the close of the session. The following paragraphs may be quoted:—

In visiting every portion of our Dominion, and in the earnest endeavour to acquire by personal contact with all classes of the community a full and accurate knowledge of the varied conditions prevailing in this country, and of the purpose and aspirations which animate our national life, Your Royal Highness has but given another evidence of that high devotion to duty which has always inspired your actions and has ever been associated with your career.

The Canadian people will not fail to cherish a happy remembrance of the deep and practical interest which Your Royal Highness has invariably manifested in literature, art and industrial pursuits in the Dominion, as well as in all philanthropic and charitable undertakings; and they recognise most fully that Your Royal Highness has always been ready to associate yourself with every movement designed to improve the conditions and add to the happiness of those to whom has been entrusted the great task and duty of possessing and developing this portion of the Empire.

His Royal Highness, in reply, after expressing his cordial thanks and his profound appreciation of the kindly sentiments of the representatives of the Canadian people, said:—

During my three years of office it has been my earnest endeavour to become acquainted with the many problems affecting the welfare and progress of this great Dominion. Nothing has struck me more than the energy and tenacity shown in all circumstances by its people, and I hope that a strong sense of duty will always pervade those to whom its destinies are entrusted.

Of their loyalty and devotion to the King and to the Empire I have had many proofs, and I hope that Canadians will always be true to themselves and to that great Dominion with which it has been my pride to be connected.

He concluded by a renewed assurance of heartfelt thanks for the generous expressions towards himself, the Duchess, and their daughter, and of their prayers for the continued happiness, peace and prosperity of Canada.

The War Session.—When the disturbances in Europe resulted on August 4 in open war, and Great Britain was precipitated into the conflict in defence of treaties, of her allies, of international morality and of national honour, Canada lost little time in contributing to the defence of the Empire.

Parliament was summoned to meet on Tuesday, August 18. H.R.H. and his staff appeared in service uniform and with few of the forms of ceremonial display. The Speech from the Throne was brief and practical:—

Estimates will be laid before you to provide for expenditure which has been or may be caused by the outbreak of hostilities.

The critical period into which we have just entered has aroused to the full the patriotism and loyalty which have always actuated the Canadian people.

From every province and indeed from every community the response to the call of duty has been all that could be desired. The spirit which thus animates Canada inspires also His Majesty's Dominions throughout the world; and we may be assured that united action to repel the common danger will not fail to strengthen the ties that bind together those vast Dominions in the possession and enjoyment of the blessings of British liberty.

As representative of His Majesty the King, I must add my expression of thanks and admiration for the splendid spirit of patriotism and generosity that has been displayed throughout the length and breadth of the Dominion.

The Prime Minister laid on the table the correspondence of the Imperial Government with foreign Powers (Cd. 7467, No. 6, 1914)—which were ordered to be printed and to be publicly distributed. Sir Wilfrid Laurier, the Opposition leader, rose after the formal speeches in moving the address, and delivered a very eloquent and patriotic speech. He said:—

It is our duty, more pressing upon us than all other duties, at once, on this first day of this extraordinary session of the Canadian Parliament, to let Great Britain know, and to let the friends and foes of Great Britain know, that there is in Canada but one mind and one heart, and that all Canadians stand behind the Mother Country, conscious and proud that she has engaged in this war, not from any selfish motive, for any purpose of aggrandisement, but to maintain untarnished the honour of her name, to fulfil her obligations to her allies, to maintain her treaty obligations, and to save civilisation from the unbridled lust of conquest and power.

And in special reference to his French-Canadian fellow-citizens, he said:—

If my words can be heard beyond the walls of this House in the province from which I come, among the men whose blood flows in my own veins, I should like them to remember that in taking their place to-day in the ranks of the Canadian Army, to fight for the cause of the allied nations, a double honour rests upon them. The very cause for which they are called upon to fight is to them doubly sacred.

The Prime Minister then followed in a necessarily more elaborate address. He complimented Sir Wilfrid Laurier on his patriotic address. He spoke earnestly of the efforts made by Mr. Asquith and Sir Edward Grey to preserve the peace of Europe. He discussed all the treaties by which the peace of Europe had been guaranteed. And with regard to the action of Germany in Belgium, he said:—

I cannot resist the conclusion, and I do not think that any man who reads these documents can resist the conclusion, that it was the deliberate intention of the Government of Germany, formed many years ago, to violate the neutrality and independence of Belgium in case war should break out with France. I say that because every man in this country, every man throughout the world, knows that plans of campaign are not made after war breaks out. Plans of campaign are made long in advance, and the German plan of campaign which has been carried out in the present war is one which involved as a first step in their warlike operations the absolute violation of the independence of Belgium.

On the subject of the value of the British Navy to the Colonies and the world, he made the following statement, which is likely to become part of the future policy of Canada:—

It is barely two weeks since war broke out. Already nearly every pathway across the ocean has been cleared. Our foreign commerce has been but little interfered with, very little indeed. The splendid organisation of the British Navy has enabled this to be accomplished. Those who are familiar with the religious service used at sea will remember that prayer goes up from the men of the Navy, in peace as in war, that they may be a safeguard to their Sovereign and his dominions and a security for such as pass upon the seas upon their lawful occasions. The quaint words of that old prayer express as perfectly as may be that which is most essential for the security and integrity of this Empire, a safe pathway across the seas. Surely that prayer has been fulfilled even in this appalling war, for already the silent victory on the sea has been won. The Atlantic now is, and we have every reason to believe that the Pacific shortly will be, practically as safe and secure for those under the protection of the flag as in times of peace.

The Prime Minister outlined the steps that had already been taken to make the action of Canada prompt and efficient. The sum of $50,000,000 was for the present voted for war purposes. Authority was taken to issue Dominion notes to a limited extent, and to enable the Government to act on the general interest of the country in regard to banks, etc. In the Senate, the proceedings were equally prompt, unanimous and patriotic. The session closed on August 22.

Meanwhile every form of public and private patriotism was stimulated. Volunteers came forward in larger numbers than could be handled. A camp for 30,000 men was formed at Valcartier in Quebec. The Province of Ontario gave $500,000 to the Imperial Government, the Province of Nova Scotia, 100,000 tons of coal for the Navy. A large sum was instantly raised for a hospital, or hospital ship, at the request of H.R.H. the Duchess of Connaught. The Patriotic Fund for the maintenance of those dependent on Volunteers was swollen to a very large amount. The province of Prince Edward Island gave 100,000 bushels of oats, Saskatchewan 1,500 horses. Manitoba sent a million bags of flour. A regiment was offered by Major Hamilton Gault of Montreal, who, with his wife, went to the front with his men. H.R.H. the Duke of Connaught went to live among the troops at the camp, where his presence was inspiring, and his experience valuable. The Volunteers embarked about the end of September, under convoy, and were in training under hard weather conditions till towards the close of the year, when at least a portion of the contingent was sent to the front; the results had not been officially stated at the close of the year.

The Provinces.—The Legislature of Ontario met on February 18. Two Bills only, of any consequence, were promised, a Redistribution Bill and a Workmen's Compensation Bill. An amendment to the Address, regretting the absence of any effort to remedy the conditions of labour in the Province, was defeated by 58 to 19. A surplus of $230,000 was announced by the Treasurer. New taxes were imposed on business corporations, to provide about $600,000 extra revenue. The total expenditure for the fiscal year ending October 31, 1914, was calculated at $17,437,738. A general election (June 29) resulted in the success of the Whitney (Conservative) Government by a majority of 55 members, a decrease of 9 from the majority at the close of the session. During the early autumn the Ontario Premier (Sir James Whitney) died; and he was succeeded by the Hon. W. H. Hearst, who was first elected in 1908. The new Premier reorganised his Ministry (Oct. 2); but no session had been held at the close of 1914.

The Quebec Legislature, which was sitting at the close of 1913, resumed business on January 7, 1914. On January 23, charges having been made against certain members of corruption, a House Committee was appointed to investigate them. A somewhat sordid state of affairs was revealed. Acrimonious and prolonged debates took place. Finally the Committee reported on February 12 against one member of the Lower and two of the Upper House; these latter resigned their seats. The Legislature was prorogued on February 19.

The Nova Scotia Legislature met on February 19. The Speech from the Throne was a review of the year very favourable in character. A Bill for redistribution of seats and for changing the character of the franchise was promised. Some disagreeable episodes regarding slanders on members, and some accusations of members trafficking in public lands, occurred; but nothing came of them in the end. The Prime Minister of Nova Scotia later in the year made active and successful efforts to provide help for the Belgians.

The New Brunswick Legislature met on February 26. It was announced that the financial claims of the Province against the Dominion had been settled, and that the Province would receive a revenue of $66,382 in addition. On April 6 charges of corrupt dealing with revenues from public lands were made against the Hon. J. K. Flemming, the provincial Prime Minister. An investigation was ordered by the Government itself. The result was a report unfavourable to the Minister, who accordingly resigned.

The Legislature of Prince Edward Island met on March 11. The Speech declared that the prosperity of the Province during the past year had been unequalled. The business of fur-farming had proved abnormally successful, and further enterprise in that business was expected. The Budget was encouraging. The public accounts showed a surplus of $15,500 for the first time in many years; and a surplus was estimated in the current year. The question of the representation of the Province in the Federal Parliament was discussed. This question has been settled by the Representation Act passed by the Federal Parliament.

The Legislature of Manitoba met on December 11, 1913, but did not begin business till the close of the holidays in 1914. The Legislature asked the Dominion Government to transfer to Manitoba all the natural resources of the Province. A redistribution Bill was passed. An appropriation of $2,500,000 was made for the improvement of roads; and a Commission was appointed to conduct the expenditure. The Budget showed a surplus of $473,221. A general election on June 10 resulted in the support of the Roblin (Conservative) Government, but by a very largely reduced majority, owing to the prominence given to delicate questions like temperance and separate schools.

On September 15-18 a special session was held to express the loyalty of the Province, to encourage enlistment, and to provide for the continuance and safety of the public business.

The Alberta Legislature met on October 7. The Prime Minister announced a surplus of $100,000, in spite of the general stringency. The response of the people of Alberta to the call for troops was pointed to with pride, in the speech of the Lieut. Governor. The surplus for the coming fiscal year was estimated at $1,176,967. The speeches on the Address were all of a loyal character, and no partisanship disturbed the short session.

The Saskatchewan Legislature met in special session on September 15. The special business was of a practical character; to grant extension of time to railway companies engaged in construction work; to regulate transactions of foreign companies; to enforce the closing of places where liquor was sold; to take power to regulate executions and debts in real estate transactions; to grant aid to the Patriotic Fund.

The British Columbia Legislature met on January 15. The principal item in the speech related to the long-discussed question of better financial terms for the Province. The public accounts, ending March 31, 1913, showed a deficit of $1,846,228, due to expenditure on public works. A measure for raising a loan of $10,000,000 was passed. Further aid, much discussed, was granted to the Canadian Northern Railway, and other railroads. The session closed on March 5. [For the attempted immigration from India in the Komagata Maru, see p. 407.]

III. NEWFOUNDLAND.

The general depression which prevailed throughout the world was severely felt in Newfoundland during the year. One of the large iron mines on Bell Island closed down early in the year, and since the war commenced the other company has also stopped operations. The ice conditions prevailing early in the year hindered trade and commerce, and the fishery operations were seriously impeded by the late ice blockade of the coasts.

The reduction of the tariff in 1912 and the trade and business depression affected the revenue of the Colony, which, for the first time for several years, was below the expenditure by $301,849.

At the outbreak of the war a feeling of uncertainty and distinct uneasiness was manifested among all sections of the community, especially as to the probable effect on trade, and more particularly with regard to the fish markets; but by the close of the year Newfoundland had—so far—not suffered to any great extent. At first the most serious problems were those of exchange and war risk insurance, and for a time these caused considerable anxiety. These difficulties, however, were overcome by the statesmanlike action of the Home Government, with the result that confidence was restored and the prices of the Colony's chief export, codfish, rose from the low figure of about $5.00 to its present unprecedented figure of 7.50 per quintal (112 lb.).

The increased cost of imports was heavy. This especially applies to food stuffs, such as flour, which was comparatively cheap early in the year, and the increased price of this commodity alone cost the people of the colony nearly $250,000.

The following comparative statement shows the falling off in the Colony's productiveness, due largely to the abnormal ice conditions in the early part of the year. Fortunately the enhanced prices helped to make up to some extent for the shortages.

	1914.	1913.
Cod-fishery, quintals	1,265,565	1,408,582
Seal-fishery, seals	233,719	272,965
Lobster pack, cases	11,017	16,565
Canned Salmon, cases	1,492	2,995
Whale Fishery, whales	168	222
Herrings, salt and frozen, barrels	78,923	68,432
Iron Ore exports—tons	1,245,797	1,243,200
Pulp exports— "	51,605	51,487
Paper " "	40,077	44,424

The values of the products exported were:—

Fishery		$10,907,677
Agriculture		23,702
Forests		315,430
Mines		1,551,803
Manufactures		2,183,611
Miscellaneous		152,320
Total, 1913-14		$15,134,543
The debt of the Colony was	$30,450,765,	as against
	$29,470,060	at the close of 1913.
The public Revenue	$3,618,329.
Expenditure	$3,920,178.

The imports and exports were respectively as follows:—

Countries.	Value of Imports.	Value of Exports.
	$	$
United Kingdom	3,826,529	3,256,446
Dominion of Canada	4,861,047	1,971,809
Other British Possessions	331,415	549,418
United States	5,796,906	1,679,362
Portugal	19,970	888,930
Brazil	31	3,240,487
Spain	113,541	1,260,649
Other Countries	244,287	2,287,442
Totals 1913-14	$15,193,726	$15,134,543
" 1912-13	16,012,365	14,672,889

The shore fishery was about 150,000 quintals less than that of 1913 (which was also below the average). The Bank fishery showed a shortage of about 28.00 quintals, and it is estimated that the Labrador fishery was slightly in excess of the catch of 1913.

The demand for codfish has been brisk, and though the late shipments to Brazil did not realise well, yet the markets in Spain, Italy and Greece have been good, though the risks in shipping and marketing it have materially increased. The green fish trade to the United States and Canada was not so brisk as in 1913. The export of this commodity so far has not suffered much from the effects of the war. Most of the catch has been shipped and marketed in the Latin countries and in the Mediterranean without loss.

The Government has been able this year to get the Government of Portugal to remove the discriminating duty of 35 cents per quintal on Newfoundland codfish entering that country. This will be a great benefit to the trade, and will permit the colony to sell on equal terms with the Norwegians.

The lobster catch was the shortest in the history of that fishery. It was estimated at 11,000 cases as against 16,500 in the preceding year and no less than 43,500 in 1904, the year of the biggest catch. The German market, which has always consumed about 90 per cent. of the catch, was closed at the end of the season, and the price went down from $24.00 per case to $13.00, and when the year finished only about 3,000 cases had been exported, the rest being in the hands of the merchants and packers who do not wish to sell at such a low figure.

The Board of Trade has recommended, in view of the falling catch and to preserve the fishery, that 1915 be made a close season and the Legislature will be asked to provide for this at the next meeting.

At the outbreak of the war British colliery owners were faced with the problem of securing a suitable supply of pit-props, and a commission visited Newfoundland to ascertain the practicability of securing supplies. Several cargoes were exported and it is likely that twenty-five to thirty cargoes will be obtained in 1915.

The mining companies operating in Bell Island were forced to shut down early in the year and at the beginning of the war, and the loss of employment to so many men caused much suffering in the part of the country affected.

At the invitation of the Government, Professor Dunstan, of the Imperial Institute, visited the colony in the summer to report on the coal and shale areas in the interior. These were inspected and favourably reported on, and it was hoped that a beginning would be made in these new industries at an early date.

The copper mines in Notre Dame Bay will probably be opened up in the spring of 1915.

During the year the colony was visited by His Royal Highness the Duke of Connaught.

The Dominion Royal Commission held meetings in St. John's and took evidence upon such subjects as "The Newfoundland fisheries," "Steam communication," "Possibilities of increasing the Colony's imports from other parts of the Empire," "Oil shale areas" and "Lumber exports." The Commission also visited Bell Island and Grand Falls and took evidence in relation to the mining and paper industries respectively of these two places. The seal fishery showed a decrease of nearly 40,000 seals, but the value was greater than in 1913 because of the greater size of the seals and the higher value of the oil and the skins. This industry was attended with two great disasters; the first occurred to the crew of the Newfoundland, who were caught in a blizzard some miles from the vessel, and seventy-eight were frozen to death, while others were maimed for life. The other disaster occurred to the Southern Cross, which was on her way home with a full load of seals when she was caught in the blizzard of March 31 and foundered. There were 174 persons on board and all perished. No traces have been found of either vessel or crew. The disasters attracted the attention of the whole civilised world and subscriptions came freely in from Canada and England, while the people of the Colony gave well. There is now a fund of $300,000 which is being faithfully administered and which will be sufficient to meet all cases of want.

The Herring fishery was large and on account of the high price of fish was well marketed.

At the ordinary session of the Colonial Parliament twenty-six Acts were passed all affecting the internal economy of the Colony; they included one giving power to borrow 400,000l. for the completion of the new branch railways and a second to raise a loan of $360,000 for the extension of the telegraph system, the erection of lighthouses and fog alarms, and for the construction and improvement of public buildings.

In September a special war session of the Legislature was called and twelve measures were passed. These measures provided for the raising of a volunteer force of 1,000 men, for increasing the number of the Naval Reserve from 600 to 1,000 men, and for raising a loan, which was afterwards provided by the Imperial Government, for fitting out and keeping up the contingents. To meet the extra cost of maintaining these men, some new duties were imposed, and Acts imposing stamp duties and death duties were passed.

In the same session a Wireless Telegraphy Act was passed, requiring steamers engaged in the seal fishing to be fitted with wireless telegraphs. It was felt that, had the Newfoundland had wireless on board, no one would have been lost.

The call of the Empire was well answered in "the loyal and ancient colony"; 750 men were sent to the Army and 500 more would be sent early in 1915. The full number of the Naval Reserve was easily made up, and already forty-nine have given their lives in the Viknor and the Clan McNaughton (in 1915). There were fully 200 Newfoundlanders in the Canadian contingent.

Archbishop Howley, Roman Catholic Bishop of St. Johns, died in October, and Monsignor Roche, a native of the Colony, was appointed in his place.

IV. MEXICO AND CENTRAL AMERICA.

The new year in Mexico opened with President Huerta as Dictator, a Bank Moratorium, and furious fighting at Ojinaga, the issue for several days being in doubt. On January 11 it was reported that the Federal Army, which numbered 4,000 but had sustained heavy loss, had abandoned the town, crossed the Rio Grande and been disarmed by the United States authorities. General Villa took possession of Ojinaga, and his star was in the ascendant. The Government defaulted in the payments of the National Debt, and the Moratorium was extended to March 31. A plot against the Government was discovered in the capital and there were many arrests of prominent citizens. On February 4 President Wilson issued a Proclamation raising the embargo on the exportation of arms and ammunition to Mexico. Keen resentment was exhibited by the Huerta party, and General Villa, who had been inactive after Ojinaga except for the execution of "bandits," resumed his campaign. British marines and machine guns were sent from Vera Cruz to guard the Legation. On February 20 news came that an Englishman, Mr. William A. Benton, an extensive ranch-owner in the North, had been shot at El Paso by order of General Villa. He had lived in Mexico for twenty-five years and knew Villa personally. It was stated that damage having been done by Villa's men to his property, he had gone to Villa and had remonstrated with him. There was an altercation between the two. By Villa's orders Benton was tried by court martial and shot out of hand. The United States, having undertaken the obligation of protecting British subjects in places where we had no Consular representative, pressed for an inquiry. The "official" record of the court martial alleged that Mr. Benton was condemned for attempting armed violence against General Villa, and for assisting General Huerta; but the friends of the murdered man alleged that he did not carry arms and had none when he entered Villa's quarters. Sir Edward Grey sent Mr. Perceval, the British Consul at Galveston, to El Paso to investigate the crime. Yielding to United States representations, Villa allowed the body to be exhumed. Sir Edward Grey had meanwhile made a statement (1) reserving the right to secure reparation "whenever there is an opportunity" should United States action fail or not be proceeded with further; (2) dismissing the idea of a British punitive expedition to Mexico, on the ground that it would be worse than futile, seeing that it would "positively help those from whom we demand reparation, simply for the sake of appearing to do something"; and, (3) the matter would not be allowed to rest, "and as soon as, by any change of circumstances, it is in our power to carry the matter further we shall take whatever steps may be practicable." Villa telegraphed that "Benton was tried by Council of War and found guilty and shot for having tried to assassinate me." Mr. Consul Percival arrived at El Paso and an Anglo-American Commission met to investigate the crime. General Carranza also appointed a Commission of his own. But by this time Benton had been buried three weeks. Mr. Percival and the Anglo-American Commission were refused facilities to cross the frontier, and Sir Edward Grey therefore found it necessary, on Mr. Percival's advice, to drop the question of an examination of the body. There the matter had to be left, nor had any reparation been obtained by the end of the year.

Meanwhile General Huerta protested against the cancellation of the embargo on arms, and relations with the United States became more strained. On April 21, in view of the outrage on the United States flag at Tampico (April 10, p. 456), the American Admiral at Vera Cruz, on instructions from Washington, seized the Customs House, and intervention on a great scale seemed inevitable. Steps were taken for the protection of foreign residents in Mexico city and British subjects elsewhere had been ordered to seek safety at once.

There was, however, a lull and diplomacy was active with the object of inducing the various parties in Mexico to arrange an armistice between the Federalist and Constitutional or "rebel" forces as a step to agreement on a Provisional Government, the assumption being that Huerta would be eliminated, by consent or otherwise. General Carranza, for the Constitutionalists, accepted this idea, or was reported to have done so at first. After confusing negotiations the facts emerged that Huerta had no intention of resigning, and that Generals Carranza and Villa would not agree to an armistice. A Conference was arranged to meet at Niagara Falls, on the Canadian side, in May, and Huerta despatched his Commissioners. The Constitutionalists resumed operations and drove the Federalists out of Tampico with ease, the Federalists taking to flight when cannon and machine guns were brought into position, commanding the town and harbour. There were other rebel successes. Simultaneously the Mediation Conference, consisting of representatives of Argentina, Brazil, Chile, the United States, and the Mexican Commissioners, began their work at Niagara and after eloquent opening speeches sat in private. The Constitutionalists then decided to send a representative to Niagara, but General Carranza stoutly refused an armistice. In the early part of June it became evident that his military position was such that General Huerta's dictatorship had almost disappeared. In this situation General Huerta let it be known at Niagara that he was willing to resign if at the time of withdrawal the country was "politically pacified." A scheme was mooted by a provisional Government nominated and agreed upon by both parties in Mexico, and it was in principle accepted by General Huerta. But General Carranza still declined the terms on which the Conference would admit his delegate, and he acted with rigour towards Federalists in his power. Many executions were reported. General Villa quarrelled with him and the Constitutionalists thus broke into two military parties. The cause of the rupture was obscure, but it was alleged that General Villa had demanded full control of the Army in return for his recognition of Carranza as dictator. The feud still further diminished the already slender chances of success at the "A.B.C," Conference at Niagara. Affairs in the Republic fell into worse chaos, and thus they continued until mid-July when the name of Francisco Carbajal, Foreign Minister in the Huerta regime in succession to Señor Rojas, was discussed as that of a suitable Provisional President. At this time the Constitutionalists under General Carranza were threatening to descend on Mexico city and the situation seemed desperate. On July 16 it was announced that General Huerta, with other officials, had left Mexico city for Puerto Mexico, and that Señor Carbajal had taken the oath before Congress as Provisional President. General Huerta's resignation was presented to Congress and accepted by a vote of 121 to 17. In his message of resignation, he reviewed his assumption of office at the call of Congress. He recalled his efforts to bring about peace, noting that in seventeen months he had formed an army to carry out his promise of peace. He reviewed the difficulties of the Government in doing this, "owing to scarcity of funds as well as to the manifest and decided protection which a Great Power in this continent has afforded to the rebels," and which culminated "in the outrage committed at Vera Cruz by the American Fleet" at the moment "when the revolution had been broken up" by the division among its leaders. He also recounted the success of the mediation negotiations, adjusting the Tampico incident, but noted that "the revolution continued, with the support of whom we all know." Rebutting the allegations that his personal interest was predominant, he offered his resignation as a proof that interest in the Republic was his chief thought. The message aroused prolonged applause, and General Huerta had a hearty popular farewell. He left for Europe, via Havana, landing at Avonmouth and proceeding to Spain.

The new President had been a Judge of the Supreme Court under Diaz, Minister in London under Huerta, and then Foreign Minister. He had the reputation of being a man of peace and distinction of mind,—qualities that made him unacceptable to General Carranza. Negotiations between the two chiefs broke down over the question of the punishment of the Huertist leaders, and ultimately Señor Carbajal fled to Vera Cruz, and the Carranzists entered Mexico city on August 20. The United States Government in September began to contemplate withdrawing its troops from Vera Cruz, but it demanded (1) that the Customs duties and taxes collected by it on Mexican account during the occupation should not be required a second time from the payers; (2) that Mexicans employed by it should not suffer in consequence; (3) that United States citizens and priests and members of religious orders should be protected from harm by the Mexican Government. General Carranza would not give definite assurances to this effect. Villa, whose allegiance to Carranza had long been doubtful, broke with him early in October, ostensibly because Carranza was supposed to be delaying agrarian reform, and a Peace Conference was summoned at Aguas Calientes (364 miles north of the capital on the line to El Paso), which was intended to eliminate both Villa and Carranza and to substitute a Provisional President. Carranza, backed by some of his subordinate Generals in Southern Mexico, refused to attend the Conference, but offered to resign if a Provisional Government were set up and Villa and Zapata would retire also. Villa had come to terms with Zapata, and controlled the Conference; and on October 31 it deposed both Carranza and Villa from their commands—Villa's deposition, however, being only nominal—and elected General Carlos Gutierrez Provisional President (Nov. 2) for twenty days, subject to renewal. It then declared Carranza to be a rebel. President Wilson now decided to withdraw the United States troops in order to leave Mexico free to settle her own affairs, and they left Vera Cruz on November 23, taking with them the Customs duties they had collected, to hold till a stable Government was established, and also some clerical refugees. It was occupied by a Carranzist force under General Aguilar. Villa, however, suspected Gutierrez, and the capital was occupied early in December by a Zapatist force. Carranza had offered to confer with Villa at Havana, but the year ended amid a fresh civil war. A tramway strike in the capital and a dearth of food in Northern Mexico also marked the end of the year.

An agreement was arrived at in June between Great Britain, the United States and Holland to withhold support from any of their respective nationals claiming, directly or indirectly, "any right or title or interest in oil properties acquired since April 24 by reason of the cancellation of contracts or leases, or by reason of the confiscation by de facto authorities of properties on the ground of default of contractual obligations or non-compliance with legal requirements, provided that such default or non-compliance is unavoidable because of military operations or political disturbances."

In Panama the Canal was unofficially opened for general traffic on August 15, the United States War Department steamer Ancon, of 6,000 tons net, going through the locks at the head of a procession of vessels. Barge traffic had passed through earlier, and a number of ocean steamers did so later, but a landslide in October blocked the waterway for a few days and other interruptions occurred in November and December. A report on the work of the Sanitation Department showed a steady improvement in the sickness and death rates among the employees on the Canal and the Panama Railway. Yellow fever and plague had disappeared, malaria had diminished greatly. The death rate of the whole population of the zone, including the towns of Colon and Panama, was 49.94 per 1,000 in 1905, and was reduced to 20.49 in 1912 and 23.57 in 1913. The expenditure on the Canal by the end of 1913 stood at 65,000,000l. In November rules were promulgated on the use of the Canal by belligerents.

In his Message to the Assembly of Guatemala, in March, President Estrada Cabrera announced that the Government had replied to the representations of the British Foreign Office, requesting the restoration of the revenue given as a guarantee for the service of the 4 per cent. external debt, by an agreement made direct with the representatives of the bond-holders.

A treaty between Nicaragua and the United States was before the U.S. Senate at the close of the year (p. [461]). The other Central American Republics had little history except that of financial distress consequent upon the war.

V. WEST INDIES AND THE GUIANAS.

The West India Islands and British Guiana had an uneventful and fairly prosperous year until the outbreak of war, nor do their commercial interests seem since then to have been materially affected. The war stimulated the loyalty of the people and caused less apprehension than might have been expected, having regard to the concentration of the Fleet in home waters and the defenceless condition of the archipelago, in which there were German cruisers late in July, which are believed to have cut the cable on August 3. It was at first thought that the cable had broken owing to an earthquake at Jamaica on that day, but the view of the repairers was that it had undoubtedly been cut. On the defect being remedied the West Indies learned that war had been declared. On October 20 the Governor of Jamaica was able to report that matters had proceeded normally. That had been the case elsewhere. There had been no excitement and no unrest; the bank returns showed an increase of deposits since the opening of hostilities,—one of many signs that the island was recovering from the depression of 1913. The people had displayed a spirit of the greatest loyalty and he had received a large number of offers of personal service. His language is applicable to other islands and the mainland colony. Many West Indians came to England and enlisted in the new army. Though the tide of war did not reach our possessions in the Caribbean and the Guianas, the fact that Germany was at war with France and Great Britain opened up new possibilities in the Western world south of the United States, in the event of German success. So far as can be judged the normal life of the colonies was pursued, but the war checked development projects. Thus no progress has been made with the scheme for opening up the hinterland of British Guiana by a railway. The proposal of the Governor, Sir Walter Egerton, awaits the decision of the Colonial Office. A loan would be required and the chances of such legislation in the Imperial Parliament at an early date may have diminished to vanishing point since August. The need of railway enterprise in this long-neglected colony—the El Dorado of Raleigh—was illustrated during the year by the authenticated discovery of a new gold area between the head waters of the Takutu River and the Tucurutu Mountains. The British route to the field would be partly by existing steamboat and railway services and thence by canoe, with many portages past rapids, then across the Savannah and again by canoe. The journey is commercially impracticable unless the deposits are exceptionally rich. The new gold area is sparsely inhabited by Macusi Indians, who speak the Carib language but are not pure Caribs, and there is no food in the region other than what the aborigines grow for themselves. On this account and because of the long and difficult journey the Government issued a warning notice to those fitting out expeditions. The discovery greatly strengthens Sir Walter Egerton's case for a hinterland railway, without which "the largest undeveloped auriferous area in the world"—to quote the Government expert—cannot be developed.

Hayti and Santo Domingo had another revolutionary year, tempered by the occasional intervention of United States warships for the protection of foreign property.

VI. SOUTH AMERICA.

A commercial crisis occurred in Brazil early in the year, owing to the fall in the prices of rubber and coffee, and it culminated on the outbreak of war in a general default. It was complicated in February by a rebellion in the State of Ceara, which started among rubber collectors who could no longer get employment. It was led by an ex-priest, Padre Cicero, and quickly reached proportions beyond the resisting power of the State authorities, the political opponents of the President of Ceara, Colonel Rabello, apparently using the movement to get rid of him. In this they succeeded, the Federal authorities failing to respond to his requests for support. The rising, however, being economic rather than political in origin, became so extensive and so menacing to the Republic that the Federal Government had to proclaim martial law and reinforce the Federal troops at Fortaleza, the State capital. The administration of the State was taken over by the Federal Government and a military officer, Colonel Setembrino, put in charge. This meant the elimination of Colonel Rabello and an easement of the political tension. The disarmament of rioters was proceeded with and the State thus quieted. Meanwhile there had been ominous signs of trouble in Rio Janeiro, but these were promptly suppressed by the Government, by the usual methods of arrest and control of the Press. A leading paper at Rio gave an indication of the acuteness of this crisis by publishing in the place of its leading articles the story of Ali Baba and the Forty Thieves. But the trouble in the Federal capital—a week's journey from Ceara by sea—passed off. As fears of a revolution diminished the financial situation became more acute. The Budget law for 1914 put the expenditure at 435,773 contos of reis paper and 95,469 contos gold and the estimated revenue at 130,219 contos gold and 367,571 paper, leaving a deficit of 9,621 contos paper. In June Congress authorised the Government to contract a loan to enable Treasury obligations to be met, and passed resolutions prohibiting expenditure not yet entered upon though lawfully authorised. Whatever effects this belated zeal for economy may have had, a heavy deficit on the Budget proposals put before Congress in July was not avoided, and when war broke out in Europe the Republic defaulted. In October the Brazilian Government promulgated a Funding Scheme by which interest on all the foreign loans, except the Funding Bonds of the 1903 loan, became payable in scrip for three years, while the redemption of nearly all securities was postponed for thirteen years. The Budget estimates for 1915 were dislocated by the effects of the war.

Mr. Theodore Roosevelt published in December a volume under the title of "Through the Brazilian Wilderness," in which he described his travels with Colonel Rondon and other Brazilian officers in the hinterland of the Republic, and gave an account of the previously unexplored tributary of the Madeira River—an affluent of the Amazon—which is now officially known as Rio Teodoro or Roosevelt River. Mr. Roosevelt gives the credit for the discovery to Colonel Rondon and his associates of the Telegraph Commission during six years' work in the interior prior to his own journey. "It was their scientific exploration of the Chapado, their mapping of the basin of the Juruena, and their descent of the Gy-Parana that rendered it possible for us to solve the mystery of the River of Doubt"—a river some 1,500 kilometres in length, of which the upper course was utterly unknown, and the lower course, though used by rubber collectors, unknown to cartographers (see post, Science, Part II., p. 54).

The new President of Brazil is Dr. Wenceslao Braz and the Vice-President Señor Urbano Dos Santos. The President was Vice-President under Marshal Hermes da Fonseca.

The economic condition of Argentina was unsatisfactory in the early months of the year and the effects of the war were severe. The Presidential Message at the opening of Congress on May 27 stated that the expenditure for 1913 had amounted to 39,128,000l. and the Treasury receipts to 34,897,000l. The total external and internal debts of the National Government amounted to 108,800,000l. Drastic economies had to be made in the Budget for 1914 owing to the decrease of customs. It was claimed that the unfavourable state of business could not affect the stability of the country, seeing that agriculture continued to expand. Weather conditions proved to be bad and an immense area of the country was waterlogged in July. The financial and agricultural outlook was unfavourable at the outbreak of the war, which produced an economic crisis in the Argentina as elsewhere in Latin America. In presenting the Budget for 1915 a Presidential message forecasted a saving in the 1914 Budget of 5,000,000l. and prophesied the subsidence of the economic troubles before the new year—calculations dissipated by the war.

In Peru the political disorders of 1913 resulted in February in the downfall of President Billinghurst, who had attempted to break down the rule of the ring of governing families, much as Balmaceda had in Chile in 1891. On the 4th of that month Colonel Benavides, with a body of infantry, seized the palace at Lima and made the President prisoner. The immediate issue which produced this coup d'état was an attempt by the President to bring about a general election on the plea that the existing Congress was invalid because of illegalities. Colonel Benavides acted as the instrument of Congress, which represented that it had acted constitutionally in deposing a President who had himself contumaciously violated the Constitution. An aspect of legality was thus given to the movement. The affair at the Palace was bloodless, but General Farela, Prime Minister and Minister of War, was killed at Santa Catalina arsenal "while endeavouring to impose his authority" on the troops, and there were other casualties. The ex-President was lodged in jail and political offenders he had himself imprisoned set free. Lima was reported quiet the next day, a provisional government having been formed with Colonel Benavides in control. The official account said that "public opinion and the patriotism of the Army having enforced respect for the Constitution, President Billinghurst resigned." The Government was being "carried on under normal conditions and in the enjoyment of general confidence." On February 18 Señor Billinghurst was escorted from prison to a cruiser and exiled with his son George, and one of his Ministers. Many weeks passed in controversy and manœuvres on the issue whether Señor Roberto Leguia, as first Vice-President, had the right to succeed ex-President Billinghurst, or whether there should be a general election. Señor Leguia's party was on one occasion forcibly excluded from Congress and on another the Opposition absented themselves, the effect being that Señor Leguia's claim could not receive Congressional sanction. The Provisional Government used the military in the interests of the opponents of Señor Leguia. Señor Don Augusto B. Leguia, a former President of Peru, was then in London and gave an account of the matter favourable to Señor Roberto Leguia. The Junta under Colonel Benavides, he pointed out, was called into existence to exercise authority until Congress met and decided what was to be done. Their conduct was that of a dictatorship, masked by the vote of a minority in Congress—a party which came to be known as the Bloquistas. Attempts to compose the differences failed. Señor Roberto Leguia appears to have been willing to resign if the Junta also resigned, and there was a general election, by which, according to the Constitution, a President is elected. On May 18 it was reported that a majority of the Congress had met at Señor Leguia's house and accepted his oath as President by virtue of his right as Vice-President to succeed Señor Billinghurst. The acceptance was by a legal quorum of the Congress. A manifesto was issued to the nation and Señor Leguia invited the diplomatic body to recognise his status. There were thus two Presidents of Peru; but Señor Benavides also claimed to have been duly elected by Congress, and his election was eventually confirmed by the Supreme Court.

Uruguay shared to the full the economic misfortunes of the larger Republics. The year opened with a monetary crisis, attributed by the Minister of Finance to depletion in the stock of gold and the difficulty of borrowing in Europe. The Bank of the Republic restricted credit. President Batlle y Ordoñez, in opening the Legislature in February, asserted that notwithstanding the monetary crisis the country had made substantial progress and was on the road to recovery. The imports for 1913 amounted to 9,600,000l. and the exports to 12,600,000l. Of the Public Debt 609,517l. had been redeemed and 1,210,260l. of the Internal debt issued. The annual statement on the Public Debt showed the total on December 31, 1913, to be 28,999,737l.—an increase of 639,088l. The Budget for 1914-15 showed an expenditure of 6,976,526l.; the revenue was estimated to be in excess. A new loan of 2,000,000l. was issued and further loans were sought. The project of a "Pan-American" railway, which was to give a direct route from Buenos Ayres to the Brazilian system, did not materialise. The Uruguayan Government rescinded its concession and in April initiated a policy of new State lines to link up the Brazilian system. The principle was to secure the economic independence of the Republic in railway matters and it was officially denied that there was any hostility towards the Central Uruguay Railway Company.

Except for commercial depression and the effects of the war the affairs of Paraguay were uneventful.

The war brought about the like financial crisis in Chile as elsewhere in Latin America. Early in the year it was announced by the President that having regard to economies then effected, the expenditure for 1914 would be covered by the revenue. The Legislature passed a Bill for reorganising and extending the railway system at a cost of 4,710,000l. A proposal to convert the paper peso at the rate of twelve pence gold met with much obstruction and the war came before it could be carried through the Senate. At the time of the war Chile had a warship of the Dreadnought class building in England. In view of rumours that warships building would be sold, the Chilian Government formally declared that they would not cede the vessels, which were contracted for "solely to fulfil the exigencies of Chile's geographical position and of her international rank. The said units will only leave British waters to be incorporated into the Chilian navy." The Anglo-German naval engagement off the coast of Chile is narrated elsewhere (p. [227]). It was reported from Santiago after the loss of H.M.S. Good Hope that German merchant vessels had misused Chilian territorial waters for the supply of stores and sending wireless messages to German warships. The Chilian Government authorised the statement that from the first Chile had strictly carried out her neutrality and had effectively used her warships for convoying within territorial waters merchant vessels threatened by cruisers. Regulations were cited to show that not only was the taking of abnormal stores by belligerent merchantmen prohibited but that vessels carrying wireless had to dismantle the installation. In the Chilian Parliament the Minister for Foreign Affairs made an elaborate statement showing that there was no ground for the insinuation that there had been a departure from neutrality. Incidentally he stated that the action in which H.M.S. Good Hope was lost (Nov. 1) took place at "a very considerable distance outside the territorial limit." The British Government was satisfied that there had been no lack of good faith or vigilance by Chile and that reports to the contrary were "not in accordance with the facts and do not in any way represent the opinion of His Majesty's Government." An anti-German outbreak was reported from Valparaiso in December owing to the German controllers of the tramways raising the passenger rates.

Mr. and Mrs. Scoresby Routledge left the Chilian coast in the yacht Maria in January for Easter Island, where they are making a study of the gigantic stone figures and other antiquities.

Bolivia—the land-locked Republic of South America—has maintained good relations with her neighbours and her record until the war was one of economic progress. Her external debt in March, 1913, amounted to 3,000,000l. only, nearly all contracted with the Credit Mobilier Français, and her productiveness was increasing. A thorough study of this Republic by M. Paul Wallé on the instructions of the French Ministry of Commerce is embodied in his book "Bolivia, its People and its Resources, its Railways, Mines and Rubber Forests" (T. Fisher Unwin, 1914). New railway schemes were projected during the year for regions still dependent on mule transport. A decree was issued from La Paz requiring the registration of labour contracts for the interior and making provisions, under penalties, for the prevention of abuses of the peonage system, common throughout Latin America and not infrequently resulting in the practical enslavement of the labourer. There had been scandals in Bolivia affecting Colombian nationals in the Beni rubber region; and perhaps no rubber-producing area on the continent is free from them. Since the exposure of the horrors in the Putumayo region Governmental opinion in other Republics has been stimulated to take corrective action where conditions more or less comparable had arisen, and the action of Bolivia is indicative of a desire to protect the forest worker. In this connexion it should be observed that the Foreign Office has sent a Circular despatch [Cd. 7148] to its consular officers, calling attention to the Putumayo report and giving directions for more energetic action in cases of maltreatment of natives where British subjects and companies are responsible. They are to make themselves cognisant of labour conditions in concessions partly or wholly controlled by British subjects, and to embody in their annual reports the result of their studies, besides making special reports in serious cases, thus enabling the Foreign Office to warn the persons and companies concerned. Following the precedent of the Putumayo case the policy of the British Foreign Office is to encourage consular vigilance, and on the receipt of reports of serious ill-treatment of natives where British subjects may be held to account, to authorise special consular journeys of investigation.

In Ecuador there was a revolutionary movement in the north, under the leadership of Colonel Concha, who was credited with a desire to overthrow President Plaza, who himself gained office by expelling General Alfaro from the Presidency. Colonel Concha held the port of Esmeraldas, which was shelled by Government war craft. The revolutionary movement was officially represented to be unimportant. Breaches of neutrality in the German interest were alleged also against Ecuador, which with Colombia was called to account by the British and French Governments (p. [237]). The Ecuadorean Government issued an absolute denial of this and of the charge that the wireless installations had been allowed to be used by Germany. The charges were "pure inventions concocted in the United States." It is noticeable that both in the case of Colombia and Ecuador the representations of the Allied Powers were made through and by the United States Government.

In Colombia Don José Vicente Concha, a Clerical and Conservative, and former Financial Agent of the Republic in Paris, was elected President for four years from July. The country was in the proud position of being able to announce that, notwithstanding the dislocation of business caused by the war, the interest on her external debt was being and would be punctually paid. The gold industry of this Republic is progressing. As in the case of Chile, but apparently with more justification, complaints were made (p. [237]) that Colombia had permitted acts in assistance of the Germans and had violated her neutrality. Colombia denied the charges, through the Chargé d'Affaires at the Legation in London, who cited a decree of September 1, "enforcing" all measures required to safeguard the neutrality of the Republic in connexion with the operations of the wireless stations at Cartagena and Santa Maria, the only two wireless stations in the country. A decree of September 11 was quoted to the effect that in the absence, of properly qualified experts who could satisfy the Government as to the way in which the censorship and transmission of messages would be conducted, the station at Cartagena "should be closed." There were also decrees of August 12 and 22 to ensure strict observance of neutrality rules by shipping and users of ports. The existence of these decrees was not in dispute. Later on the Chargé d'Affaires reported that official cables from Colombia of November 19 stated that the French Minister at Bogota and His Majesty's Naval Attaché in Washington had expressed their thanks to the Colombian Government and their satisfaction with the action taken to carry out the requests of the Allied Governments. The representations of the latter had, in fact, been effective. A treaty was under consideration by the United States Congress for the payment to Colombia of 5,000,000l. as indemnity for the loss of Panama territory by the revolution of 1903. The treaty had not been ratified by the United States Senate at the close of the year.

From Venezuela there is nothing more novel to record than a frontier raiding difficulty with Colombia.

FOOTNOTES:

[29] It reopened for general business on December 12, and for dealings in bonds a fortnight earlier.

CHAPTER IX.
AUSTRALASIA.

I. AUSTRALIA.

Had it not been for the dominating influence of the war the year in Australia would have been memorable for the unfortunate consequences attendant upon a season of short rainfall. The absence of rain was felt early in the year, and by mid-winter it was clear that both small and large holders would suffer severely. The lambing, which, in a great pastoral country like Australia, makes such a notable addition to the national income, was a partial failure, and over wide areas, particularly in the south of the continent, stock owners had considerable trouble to keep their flocks and herds intact. Among the farmers, the wheat growers were the main sufferers. The 1913-14 harvest exceeded 100,000,000 bushels, and was the largest the Commonwealth had produced. The crop which was being garnered at the close of 1914 produced only 26,500,000 bushels. With the single exception of New South Wales, which had a small quantity of wheat available for export, none of the States grew enough grain for their own flour necessities. The partial failure of the rainfall was the more serious because, as a great pastoral and a considerable agricultural community, Australia must otherwise have made very substantial gains out of the high prices for foodstuffs established by the war. At the same time, however, too much attention must never be paid to one season of bad rainfall in Australia. Previous to 1914 the Commonwealth enjoyed an almost unbroken run of exceptional prosperity for ten or eleven years, and there had in that time not only been remarkable development in all primary and secondary industries, but also a very considerable accumulation of wealth by all classes. Fortunately, as the year closed there were heavy and widespread rains, and with excellent prospects of a return to happier conditions in 1915.

The declaration of war against Germany was not taken quite so calmly by the Australian people as by the people of the United Kingdom. The Australians, as a youthful community, naturally exercise less restraint in a time of Imperial stress than the experienced veterans of the Mother Country. Then the high feeling which prevailed in Australia was accentuated by the sense of isolation from other parts of the Empire, and particularly from the seat of war; while the news service dealing with the war was, particularly in the early stages, far less satisfying in the Commonwealth than it was in London. All cable communications were severely censored both before they left the United Kingdom and in many cases again after they reached Australia, and the consequence was that the Australian people were apprehensive lest they should be receiving only information which was favourable to the British cause. It is necessary to mention these facts in order to understand the marked contrast presented by the British people at home and those of the self-governing Dominions in the early stages of the war. The scenes of enthusiasm which attended the departure of the first contingents from Australia found no parallel in the United Kingdom, and the Australian people were at the same time far more anxious and "jumpy."

The Australians are made up to the extent of 97 per cent. of Anglo-Saxon blood, and so there was nothing remarkable in the immediate response to the Empire's call to arms. The young manhood of the Commonwealth fell into line just as naturally and spontaneously as the manhood of London or Edinburgh. Within two or three days of the declaration of war the Commonwealth Government had offered 20,000 troops for service in any part of the world. This offer was immediately accepted by the Imperial Administration, and from that moment until the year closed volunteers came eagerly from every class and every portion of the Commonwealth. The people of Australia entered with special enjoyment into the task of the destruction of Germany's ambitions and the acquisition of her territory in the South-West Pacific. It had always been felt that some of these territories, and especially German New Guinea, were too close to the Commonwealth, and the time might come when they would be the cause of serious trouble between the two peoples. Moreover the flying expeditions which the Imperial Government ordered or sanctioned for the conquest of these enemy colonies, gave an opportunity to the young Australian Navy to demonstrate its seamanship and fighting capacity. Before the war was many days old, the first Expeditionary force, with Colonel Holmes in command, was on its way, under Navy protection, towards the North, and a week or two later the whole Empire was delighting in its initial successes. The operations of this Force were of historic interest, because they marked the first occasion upon which Australians engaged in warfare without the co-operation and support of other British troops.

The rapidity with which the men under Colonel Holmes' command were enrolled and despatched showed the general efficiency of the Australian Defence Force. Recruits were called for on August 9, and by August 18 the Force was embarked under sealed orders "For the Tropics." After a fortnight's training on the Queensland coast, the expedition proceeded direct for the German headquarters at Simpsonshafen, in New Pomerania, or, as the island is more familiarly known, New Britain. It was from Simpsonshafen that German New Guinea and other territory in the vicinity was governed, and the first aim of the Australians was to locate and destroy a wireless station known to be at work upon the island. A small German force supported by a number of natives offered sharp resistance to the advance towards the station, and before the Australians carried the position they lost seven men, including Lieutenant-Commander Elwell, R.N., and Captain Bryan Pockley, of the Australian Army Medical Corps. All resistance fizzled out within a few days, and on September 12 the British flag was hoisted, and possession taken of the Island. Before the end of the month a landing had been effected at Friedrich-Wilhelmshafen, the chief German station upon the mainland of German New Guinea, which capitulated without resistance. Meanwhile other units of the Australian Navy convoyed the little New Zealand Force which took possession of German Samoa; and the Bismarck Archipelago and other islands were captured at about the same time. Then the Japanese took the Marshall Islands, which they have since graciously handed over to the keeping and administration of the Commonwealth. Had the conquest of these Pacific Islands not been overshadowed by the fateful struggle in Europe, more would have been heard doubtless of the extent and richness of Germany's lost colonies. Sufficient for the present to say that they make up a wide area of land teeming with qualities capable of great wealth production. At present the new territory is being administered by resident officials specially appointed by the Commonwealth.

When war was declared there were a considerable number of German vessels of importance in Australian waters or about the coast, and few if any of these escaped the activities of the local Navy. The entry of these ocean captives to the various ports was the signal for outbursts of enthusiasm among the people, who were making prisoners of war for the first time in their history. Australia's first serious mishap occurred in the loss of Submarine A.E.I., which disappeared mysteriously between August 14 and 19 in the Pacific close to the Australian coast. The total crew, made up of thirty-five officers and men, were drowned. It is believed that the submarine foundered owing to an accident.

Meanwhile recruiting was proceeding vigorously for the main Expeditionary Force, intended ultimately for service on the Continent, but subsequently diverted, temporarily at least, to Egypt. In the South African War the Australian troops were made up almost entirely of Mounted Infantry, and a preference was consequently given to young countrymen. In the present campaign, however, the call was chiefly for Infantry, and so the men of the cities had equal opportunity. The response was of the best kind; it was common for remote stockmen to present themselves to the recruiting officers after an overland journey of many hundreds of miles. The first Force to embark represented a complete fighting unit of upwards of 22,000 men, with its proper complement of Cavalry and Artillery and fully equipped in all its branches. Many of the men had seen service in the South African War; a large number were drawn from the oldest of the Cadets, and so were the first-fruits of Australia's system of compulsory military training. As a whole, however, it was necessary that the Force should undergo a few months' training before entering upon active service in Europe, and this training was carried out in Egypt, while the men were at the same time available for the defence of that territory against the Turks.

It was during the transport of the Expeditionary Force to Egypt that H.M.A.S. Sydney had the dramatic encounter with the notorious Emden. The Sydney was part of the convoy of the transports, and early one morning there came a wireless call from Cocos Island that a foreign warship was approaching. The Sydney responded immediately, and a few hours later sighted the Emden, and forced her to accept battle. In the opening round the duel was fairly even, and the Emden gunners, shooting with great precision, got two or three shots home, without, however, causing the Sydney much damage. Thenceforward, the Sydney showed her superiority, and after a short fight, the Emden, very badly, damaged and after suffering terrible casualties among her crew, was broken and beached upon one of the islands of the group. The Australian flagship was at about this time co-operating with Japanese and French battleships in scouring the Pacific in search of the German squadron which had destroyed the Monmouth and the Good Hope, and so contributed indirectly to Admiral Sturdee's great victory at the Falklands.

The response to the various patriotic funds was similar to that in other parts of the Empire. Money and comforts of diverse kinds flowed in on a most generous scale. By the end of the year upwards of a million sterling had been contributed; the Commonwealth Parliament voted 100,000l. to the relief of distressed Belgians, and the State Governments and a large number of Municipalities also contributed handsomely to the same cause.

The Commonwealth.—Early in the year Lord Denman resigned the Governor-Generalship owing to ill-health, and was succeeded by Sir Ronald Munro Ferguson, who arrived in Australia in May. Almost the new Governor's first act, and one which led to much controversy, was the granting of a double dissolution to the Federal Parliament at the request of the Prime Minister, Mr. Joseph Cook. Mr. Cook's aim was to put an end to the stultifying deadlock which existed between the House of Representatives, in which the Government had a slender majority, and the Senate, where the Labour Opposition was overwhelmingly dominant. The elections were arranged for September, but immediately upon the declaration of war the Labour party, led by Mr. Fisher, urged that an appeal to the country under the circumstances was undesirable, and that the Government should continue to carry on until a more favourable season for party controversy. This course, however, was not deemed practicable, and the elections were held. The returns gave Labour a majority of 41 to 33 in the House of Representatives, and 31 to 5 in the Senate. Mr. Cook resigned, and a Labour Cabinet was formed as follows: Prime Minister and Treasurer, Mr. Fisher; Attorney-General, Mr. Hughes; Minister for Defence, Mr. Pearce; Trade and Customs, Mr. Tudor; External Affairs, Mr. Arthur; Home Affairs, Mr. Archibald; Postmaster-General, Mr. Spence; Vice-President of the Council, Mr. Gardiner; Honorary Ministers, Messrs. Jenson, Mahon and Russell. Mr. Arthur died before the end of the year, and was succeeded as Minister for External Affairs by Mr. Mahon. Mr. McDonald became Speaker in the House of Representatives, and Mr. Givens President of the Senate. Mr. Fisher in his Budget, presented on December 3, estimated the expenditure for 1914-15 at 37,500,000l., which included nearly 12,000,000l. to cover the local cost of the war. The revenue was estimated at 23,273,000l., and the deficit of 13,000,000l. was provided for by a loan of 10,500,000l. by the British Government, and Treasury Bills to the extent of 2,588,000l. Much gratitude was expressed towards the Home Government for the generous manner in which they came to the financial assistance of the Commonwealth. A loan of 18,000,000l. was granted to the Commonwealth for re-loan to the States. Much of this money was required to meet old loans falling due, while the balance was wanted for the vigorous prosecution of railway construction and other public works. In view of the considerable dislocation in private industry owing to the war, especially in mining, it was deemed desirable that both the Federal and State Governments should continue development works during the war, and so avoid unemployment and distress. The Government proposed a slight increase of the Land Tax and a revision of the tariff, with still further preference to British as against foreign goods. Probate and succession duties were for the first time imposed by the Commonwealth. During the year Sir George Reid, the High Commissioner in London, visited Australia, and made a number of notable Imperial speeches, and was everywhere received with enthusiasm. His term of office, which was to have expired early in 1915, was extended for one year. Earl Grey, and Sir Hartmann Just of the Colonial Office, made notable visits to Australia. The tour and Conference of the British Association, which had been so keenly anticipated by the people, were in a large measure circumscribed by the outbreak of the war. A little event of much significance was the launch from the Government docks in Sydney Harbour of a torpedo destroyer which had been built entirely by Australian labour, and, with the exception of the plates, of local materials. At the same time, it was announced that a cruiser and a number of other destroyers were in the course of construction. Following upon the excellent reports which Royal Navy officials in command of the Commonwealth Navy gave of the young native-born Australians who made up the larger part of their crews, this first successful essay into the building of a warship was regarded with the utmost satisfaction. It seemed to have established conclusively that the young Anglo-Saxon in Australia had fully inherited the genius of his forefathers for shipbuilding and seamanship. In a modification of the initial Navy programme laid down a few years ago by Admiral Henderson, provision was made for the construction of two light cruisers and two improved submarines, instead of torpedo destroyers. Considerable progress was made with the various training colleges, naval bases and other matters dealing with the defence system. Sir Ian Hamilton, in his special report upon Commonwealth forces, congratulated the Government upon the fitness of its land defences. He expressed the opinion that the whole of the regular Force and 75 per cent. of the Militia serving at any particular time were sufficiently trained and equipped to engage in modern warfare at forty-eight hours notice, while within another fortnight the balance of the Militia, together with 20,000 members of rifle clubs, could be put into the fighting line.

In New South Wales the drought was not so severe as in Victoria and South Australia. In the wide Riverina district the pinch was severely felt, but on the dairying areas, especially along the North Coast, the season was more favourable and productive than any previously enjoyed, while much of the pastoral country had a fair season. The Labour Ministry continued in office, and having a sound working majority pushed on actively with legislation. In January a new Ministry was formed as follows: Premier and Treasurer, Mr. Holman; Chief Secretary and Minister for Mines, Mr. Cann; Attorney-General and Minister for Justice, Mr. Hall; Lands, Mr. Trefle; Works, Mr. Griffiths; Public Instruction, Mr. Carmichael; Agriculture, Mr. Ashford; Labour and Industry, Mr. Estell; Vice-President of Executive Council, Mr. Flowers; Honorary Minister, Mr. Hoyle. The Treasury estimated the revenue for the financial year at 18,380,000l., an increase of 2,120,000l., and the expenditure at 18,342,000l. In October, however, Mr. Holman, in the course of his Budget speech, estimated that owing to the reduced earnings in consequence of the war, there would be a shortage on the year of 340,000l. To overcome this he proposed a temporary supertax on incomes and a tax on motor cars. The Government awakened much controversy by its decisive actions in connexion with the war. As a precaution against the operation of market manipulators, the whole of the available wheat supply was seized. The Government also announced its intention and provided the necessary purchasing machinery to take over the whole of the wheat crop then ripening at an arbitrary price of 5s. a bushel. The Government also took active steps to encourage the cultivation of a large wheat crop for the ensuing season. Towards this end farmers were guaranteed a minimum price of 4s. a bushel for their grain, and it is expected that as a result of this measure the area sown will show an increase of 1,000,000 acres, and that the crop, given a moderate season, will exceed 60,000,000 bushels. The best record to date is 37,000,000 bushels for 1913-14.

In Victoria the chief political event was the unexpected resignation of Mr. Watt as Premier in favour of Sir Alexander Peacock. Mr. Watt at once announced his intention of taking an active part in Federal politics, and entered the House of Representatives at the general election. Sir Arthur Stanley was sworn in as State Governor in February. The Premier announced a definite sustained policy of railway construction at a cost of from 600,000l. to 700,000l. a year. At the general elections in November the Liberals retained office with a majority of 43 to 22 over the Labour Opposition, all Ministers being re-elected. The Treasurer in his Budget Speech in December estimated the revenue at 10,600,000l. which was an increase of 3,000,000l. within twelve years. He pointed out that the total loans of the State amounted to 66,000,000l. of which no less than 27,000,000l. were now held by the Victorian people themselves. There was no increase in taxation for the present year, but income and stamp duties would be slightly raised within the next four years. It was claimed that the State shipbuilding yards and coal mines had paid their way, and justified the policy which led to their establishment. The season was extremely unfavourable, probably the worst Victoria had ever experienced. The shining exception was upon the great irrigation districts in the north, where the settlers, with their unfailing supply of river water, had a year of very heavy production, and reaped the full advantage of the high prices prevailing for all kinds of produce; in fact, the great illustration afforded of the value of irrigation was a big compensation for the failure elsewhere, as Victoria still has available wide areas of irrigable land, and further supplies of water which can be conserved. The appreciation of irrigation was shown by the fact that even before the season closed there was a rush for the possession of the watered lands still in the possession of the Government.

Queensland.—Major Sir Hamilton Goold-Adams succeeded Sir William MacGregor as Governor. Queensland enjoyed a remarkably good season, quite escaping the shortage of rainfall in the South. The pastoral industry was particularly prosperous, and as the war enhanced wool values and promised also to increase the price of meat, the State never had a brighter financial aspect. Early in the year, Mr. Denham, the Premier, visited England, where he arranged for the conversion of maturing loans, and was gratified at the confidence the London money market displayed about Queensland's national assets. During the year no less than 9,000,000 acres of land were taken up by new settlers, an increase of 2,000,000 acres over the previous year. Nearly 4,000,000 bushels of maize were raised, and the sugar product reached 2,420,000 tons. Altogether the outlook in the big tropical State could scarcely be brighter.

South Australia, like Victoria, was seriously affected by the drought, and the wheat crop, which is so important in the State, was very light indeed, while many settlers had great trouble to avert serious losses among their live-stock. Sir Lionel Galway succeeded Sir Day Bosanquet as Governor. Mr. A. A. Kirkpatrick retired from the position of Agent-General in London after some years of successful work, and was followed in that position by Mr. F. W. Young. The Treasurer, Mr. Peake, in his Budget Speech in October, estimated a surplus of 4,000l., and indicated that should there be a deficit in consequence of the drought and the war, it need cause no concern, as there was on hand an accrued surplus from the recent good years of upwards of 1,000,000l. As in New South Wales, Victoria, and Western Australia, there was every indication of farmers extending their wheat areas in the ensuing year in anticipation of high prices.

Western Australia.—A general election in October resulted in Labour being again returned to office. Mr. Scaddan again became Premier, Treasurer, and Minister for Railways; Mr. Collins, Minister for Mines and Water; Mr. Joseph, Minister for Lands; Mr. Walker, Attorney-General and Minister for Education; Mr. Drew, Colonial Secretary; Mr. Angwin, Minister for Public Works; Mr. Jabez Dodd and Mr. R. H. Underwood, Honorary Ministers. Nearly 300 miles of new State-owned railways were opened for traffic in December, and at the same time there was a similar length in course of construction. In every direction the Government pursued an active policy of development works. Western Australia has an area of nearly 1,000,000 square miles, and at present the population is only a little more than 300,000. The season was against agricultural production, and the wheat crop was only a little above one-third of that of the previous year, when it reached 13,500,000 bushels. As a rule, however, Western Australia enjoys a very regular rainfall, and the settlers, undeterred by the set-back, pushed on vigorously with their clearing and other pioneering. Mr. Justice McMillan was appointed Chief Justice in succession to Sir Henry Parker, and the Very Rev. Cyril Golding Bird, Dean of Newcastle, was consecrated Bishop of Kalgoorlie.

Tasmania enjoyed a fairly good season. Substantial headway was made in production, especially in orcharding, which industry continues to thrive because of the keen demand which awaits its produce in the United Kingdom, and other parts of the Old World. There was keen political fighting, in consequence of the rival parties being almost equal in strength. The Liberals under Mr. Solomon were defeated in the Legislative Assembly by one vote in April on a No-Confidence motion by Mr. Earle, the Labour leader. Mr. Solomon asked for a dissolution, which was refused by the Governor, and he then resigned in favour of Mr. Earle, who formed a Cabinet as follows: Prime Minister and Minister for Justice, Mr. Earle; Chief Secretary and Minister for Mines and Labour, Mr. Ogden; Minister for Lands, Public Works, and Agriculture, Mr. Belton; Treasurer and Minister for Education and Railways, Mr. Lyons; Mr. Justice Nicholls became Chief Justice in succession to the late Sir John Dodds; and the Very Rev. R. Stephen, Dean of Melbourne, was consecrated Bishop of Tasmania.

Northern Territory and Papua.—Interest in the development of these two great new possessions was largely suspended on the outbreak of war. The failure of the first attempt of the Federal Government to settle the Northern Territory in small areas has not yet been succeeded by any new scheme. It is now generally recognised that there will be very little farm settlement until the country is better served with railways and marketing facilities. Towards this end railway construction was proceeded with upon a small scale, and the proposal to connect the Territory by an overland line with Southern Australia was farther advanced. It is now fairly certain that this railway will be constructed in the course of a few years. The few stock owners who now occupy the richest portions of the country with great grazing stations were favoured as usual by a good rainfall and abundant pastures. Some of these pastoralists possess from 35,000 to 70,000 head of cattle, and with meat at its present price they are enjoying excellent returns.

In Papua the proximity to German territory caused much excitement among the new planters, although between the German and the Australian settlements there lies a wide and almost impassable area, made up of mountain and tropical jungle. Considerable stretches of land were cleared and added to the area under cultivation, and a number of the settlements are now approaching the period of productivity. The Administration continued its well-established policy of dealing generously with the settlers, and kindly but firmly with the natives; indeed the colonisation of British Papua, so far as it has gone, is proving an interesting exception to most of the settlement in Australasia, inasmuch as good feeling is being maintained with the natives, while substantial headway is being made with the pioneering. The commencement of railway buildings gave a new note of civilisation to this grand tropical domain.

II. NEW ZEALAND.

Up to the outbreak of war New Zealand was passing through one of the most satisfactory years in its history. For instance, Customs returns had never been so high as during the six months which ended in June, while the Minister for Finance was able to announce a surplus of 427,000l. The overflowing Treasury encouraged the Government to grant still easier terms to new settlers, so as to bring the possession of farms within the reach of farmers' sons and industrious labourers who had accumulated savings. The construction of new railways and other public works was actively promoted. An interesting political event was the re-entry of Sir Joseph Ward into party leadership. He attempted in July to oust the Government on a No-confidence vote, but the Cabinet retained office by a fair majority. The general elections were held in December, and the new Parliament found parties equally divided, the Government having forty seats, and the same number being held by the Opposition, comprised of the Liberals and Labour members. In December, Mr. Fisher, the Prime Minister of the Commonwealth, visited the New Zealand Dominion, and conferred with the Government upon Imperial Defence, so far as it affected the two Dominions, and the question of a reciprocal commercial agreement. Mr. Fisher thought (and this opinion was heartily endorsed by the great majority of the people of New Zealand and Australia) it would be unwise to build too confidently upon a long era of peace at the conclusion of the present war. He urged that Australia and New Zealand should make it clear to the Mother Country that they were ready and determined to take up the burden of Empire Defence in their part of the world. It was quite unreasonable to expect the Mother Country, with the enemy at her gates, to devote her attention to the defence of the distant dominions, whose strength enabled them to act upon their own behalf. "The national development of Australia and New Zealand," said Mr. Fisher, "would be stimulated if they relied on their own resources by maintaining a naval force which was a direct part of the British Navy, but was under local executive control. Experience showed that local control was the best and probably the only practicable method. The day had already come when self-respect should persuade Australia and New Zealand to abandon their policy of reliance upon the British taxpayer."

New Zealand's co-operation in the war was marked by great eagerness and enthusiasm. The New Zealanders are just as British in their breeding as the people of the Mother Country itself, and their response was just as ready and whole-hearted. From every portion of the island came young volunteers of the finest physique; many of them were South African veterans, and all were excellent rifle shots and splendid natural soldiers. A few months after war was declared some 10,000 of these men had been transported to Egypt, but long before then a small flying expedition had proceeded to German Samoa, and put an end to the Kaiser's colony in that portion of the Pacific. Like the Commonwealth, the despatch of the first little army to Egypt was only the beginning of New Zealand's support. Since then many additional thousands of young men of the best quality have been enrolled at the training camps. These will be sent to the front as they are trained and required, and their numbers would gladly be quadrupled at the request of the Imperial Government. New Zealand has also given handsomely to the patriotic funds, and subscribed a large amount of money to the relief of the Belgians. Indeed, as in the South African War, the practical loyalty of this little island people could not have been exceeded.

III. POLYNESIA.

Up to the outbreak of war little occurred to mark the year in these islands. For several weeks after the beginning of August, however, there was unprecedented excitement in the various white settlements. The possibility of a visit from an enemy war vessel and the eager anticipation of a call from ships flying the Union Jack with tidings of the great campaign, kept these lonely dwellers in a state of constant unrest. Generally speaking there was no trouble with the natives, and fair headway was made in planting and in trade. Some notable instances of individual patriotism were reported in the case of young planters and others, who at great material sacrifice and the exercise of much resource, travelled many thousands of miles in order to return to England and participate in the fighting.