Historical Newspapers of South Carolina

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EMLAN1 ANSWERS SAYS WE AVE NEITHER LAW NOR EQUITY ON OUR SIDE WILL KEEP UP BLOCKADE Defends Actions of Her Navy, Justi les Them by Citing Germany's Va rious Acts-Supplemental Note Discusses Prize Courts and Sug gests Arbitration of Whatever Dif ferences May Arise. Great Britain's reply to the latest American representations against in terferences with neutral commerce, made public Tuesday night rejects entirely the contention that the orders in council are illegal and. jus tines the British course as wholly within -international law. Unsustainable either in point ol law or upon principles of intern& tional equity" is the British reply t the American protest against the -biodkad of neutral ports, with an in vittion to submit to international arbitration any cases in which the United States is dissatisfied with ac tion of British prize courts. The British reply is contained ir two notes, one suoplemental.- Witt tbe notes were made public corre - spondence over the American steam - er Neches, seized by the British whil( - en route from Rotterdam to thf ,_United States, with goods of Ger man origin. Changed conditions of warfare, th British note' contends, require a ne application of the principes of .inter national law. The advent of the sub mtrine, the airship and alleged Ger man atrocities in Belgium are cited as justification for extreme measures The blockade is justified on the con fention that the universally recogniz ed fdndamental principle of a block ade is that a belligerent is entitled %o cut off "by effective means the sea orne commerce of his enemy." abe mote. reiterates that Grea tritain will Continue to apply th( order. complained of, although .noi thout every effort to avoid embar ranning neutrals.eand observes thai American statistics show that an os In frade with Germany and Aus tria haa.been more than overbalanced by the Increase of 'other industria activities'due to the war. In the gei eral reply to the Ameri -Vcan representations against the or ders incounil, Sir Edward Grey, the foreign minUter, addressing Ambas -sador Page, begins by expressing the hope that he may convince the ad miistration In Washington "that th nemsures we have announced are noi only reasonable and- necessary ft themselves, but constitute no mor than lia adaptation if the old' prin e-ple of blockade'to the peculiav cir e-uxtances with which we are- con 7 S- r Edward then refers-to alleged ocities in Belgium poisoning oi swell in German Southwest Africa ,us: of poisonona gases against th aUiedti-oops-in Flanders, and finally he-sinking of the Lusitania,-to shoi ; h&-ndspensabe it is that "we -aduld leave unused no - justifiable mo~tiocjof defending ourselves." e Coming down to the* question o' 4 th allied -blockade of neutral ports edi1he nota. continues: "In the~-variovi C 'faties which-I have -received from 04Excellency the right' of a bel A-Jgerent to establish a blockade 0: the. eanemy ports is- admitted. .a righi ~.-whhas obviously no =value sav4 '6oaras it gives power to a bel '"Igretto cut off the sea-borne ex - --orsand Imports of-bis enemy. "The -cont'ntion whichr I under a- tan& the. United States government Tnwm puts forward is that if a bellig 4enent -is so circumstanced- that his ~ -ommrcecan pass through adjacent neutral ports as easily as through jsorts-In his own territory, his oppo nisat has no right to interfere, andi e mst restrict his measures of block ade: In such a manner as to leave -such-avenues of commerce still open -to:his adversary. This is a conten tion which his Majesty's governmgnt - eels unable to accept, and which seems to them unsustainable in point d- f law or upon principles of inter - attonal equity. ~ They are'unable to' admit that a SbaIligerent violates any fundamenta] > nIpeof international law by ap. r7-piln a- blockade In- such a way as mto--ute the enemy's commerce with 'oeg.countries through neutral if thqg circumstances render - uc n application of principles of the only means of making "The giovernment of the United ..States, indeed, intimates its readi. am to take Into account the great ichanges which have occurred in the ~-~conditions 1mnd means of naval war fare since the rules hitherto govern inlg legal blockade were formulated, and recognizes that the form of close ~blockade with its cordon of ships in the lmmedigte 'offing of the block ided. ports Is no longer .practicable ithe face of an enemy possessing Sthe'meansand opportunity to make an effective defence by the use of -submarines, mines and aircrafts. "The, only question, then, which can arise, in regard-to the measures Sresorted to for the purpose of carry ing out a blockade upon these extend ed lines is, whether to use yo~ur Ex -eegency's -words, they conform to the Mapfrit and .principles' of essence of the rules of war and we shall be S'content to apply this test to the ac tion which. we have taken insofar as It has necessitated interference with neutral commerce." -Sir Edward Grey then refers to the American civil war biockade of three thousand miles of coast with a small number of vessels and recalls how the Trtited States finally took re course to blockading "neighboring neutral territory, which offered con Trenient centres from which contra *band .could be introduced into Con .federate terxitory and from which blockade runnlhg could. be facilitat "Your Excellency will no doubt re member:" wrote Sir Edward, "how, -In order to meet this new difficulty, -the old principles relating to contra -M and and blockade were developed -and the doctrine IV"'ontinuous voy age -was applied and enforced, under -whieh goods destined for the enemy territory were jntercepted before they reached the neutral ports from which they were to be re-exported. "The diffrculties which imposed upon the United States the necessity of reshaping some of the old rules s somewhat akin to those with which the allies are now faced in -dealing with the trade of their enemy. Adjacent to Germany are various neutral countries which af - ford her convenient opportunities for carrying on her trade with foreign countries. "Her own territories are covered by a network of railways and water ways, which enable her commerce to pass as conveniently through ports in such neutral countries as through her .own. A blockade limited to enemy ports would leave open routes by which every kind of German com merce could pass almost as easily as through the ports in her own ter ritory. "Reranm Is indeed, the nearest outlet for some of the industrial dis-T tricts of Germany. It seems, accord ingly, that if it- be recognized that a blockade is in certain cases the ap propriate method of intercepting the trade of an enemy country, and if the blockade can only become effective I by extending It to enemy commerce passing through neutral ports, such an exteansion is defensible and in ac cordance with principles which have met with general acceptance." The n6te then refers to the case of the British ship Springbok, seized by the United States cruisers during the civil war, bound for the British West Indies, because her cargo, it was charied, was to be transshipped to the Confederate States. The Supreme Court of the United States sustained the seizure against the condemnation of a group of prominent lawyers. although the United States and British govern ments took the broader view and rec ognized the development of older methods of blockade. 'No protest was made by Great Britain. What is really important in the general interest says the note, "is that adapations of old rules should not be made unless they are consist ent with the general principle upon which sn admitted belligerent right is based. It is also essential that all unnecessary injury to neutrals should be avoided. "With these conditions it may be safely affirmed that the steps we are taking to intercept commodities on their way to and from Germany fully comply. We are interfering with no goods with which we should be en titled to interfere by blockade if the geographical position and the condi tions of Germany at present were such that her commerce passed through her own ports. "We are taking the utmost pos sible carenot to interfere with com merce genuinely destined for or proceeding from neutral countries. Furthermore, we have tempered the severity with which our -measures might press upon neutrals by not ap plying the rule which was invariable in the old form of blockade, that ships and goods on their way to or from the blockaded area are liable to condemnation." The note reviews at some length various forms in which blockades have been maintained to show there has been no unifognity of practice in essential points, and declares "the one principle which is fundamental and has obtained universal recogni tion is' that by means of blockade a belligerent is entitled to cut off by ef fective means the sea-borne com merce of his enemy." Conequently, Sir Edward argues, it is impossible to maintain that the right of P belligerent to intercept the commerce of his enemy can be limited in the way suggested in the Ameri can notes on the subject. "There are many cases," he says, "in which proofs that the goods were enemy property would afford strong - evi dence'that they were of enemy origin or -enemy destination and it is only in such cases that we are detaining them. Where proof of enemyowner ship would afford no evidence of such origin or destination we are not in practice of detaining the goods." Sir Edward's note closes with the observation that "figures of recent months show that the increased op portunities afforded by the war for American commerce have more than compensated for the loss of the Ger man and Austrian markets. "We shall. continue," he says, "to apply these measures with every desire to occasion the least possible amount of .inconvenience to persons engaged in legitimate commerce." In the supplemental note,. which replies to the American caveat giving notice-that the United States would not recognize the orders in council in fleu of .international law, Sir Eid ward Grey writes he does "not un derstand to what divergence of views as to the principles of law applica ble in cases before the prize 'court, the government of the United States refets, for I am not aware of any dif ferences existing_. between the two countrjes as -to the principles of law applierjle in cases before such courts." Sir Edward compares the rules governing British prize courts to the rules applied by American courts, referring especially, to the American case of the Amy Warwick~ before the United States Supreme Court, where it was held that "prize courts- are subject to the instructions of their own sovereign. In the absence of stich instructions ~their jurisdiction and rules of decision are to be ascer tained by reference to the known powers of such tribunals and the principle by which they are governed under the public law and the practice of nations. It wonld appear, there f ore, that the principles applied by 1 the prize courts of two courntries are Identical." Thie supplemental note then pro-1 eeeds to demonstrate the practicabili ty of a prize court being governed by1 internationaljlaw at the same time by municipal law in the form of orders in council. It finally comes to the case of the steamer Zamora, in the presen'. war. The British court de clared "the nations of the world need not be apprehensive that orders In council will emanate from the gov-' ernn~ent of this country in such viola tion of the 'acknowledged laws of nations that it is conceivable that our prize tribunal, holding the law of nations in reverence would feel called upon to disregard and ref use obedience to the provisions of such orders." Sir 'Edward then points out that the legality of orders in council or for measures taken under them, have not yet been brought to a decision in a prize court, but he reminds the United States that "it is open to any United States citizen whose claim ist before the prize court to contend that any order in council which may e affect his claim is Inconsistent with t the principles of international law and is, therefore, not biznding upon g the court. "If the prize court declines to ac- d ept his contentions, and if. after h such a decision has been upheld upon c appeal the judicial commerce of his a Miajesty's privy council, the govern- r ment of the United States cosider t that there is serious ground for hold- e ing that the decision is incorrect and il infringes the rights of their citizens. c it is open to them to claim that it e hould be subjected to review by an nternational tribunal." f The Matamoros cases of civil war hen are cited to show that the Unit- ti d States Supreme Court held it had b the right to reverse prize court de- II cisions. and that "there was no doubt b f jurisdiction of an international p tribunal to review the decisions of 0' prize courts of the United States fi here lthe parties alleging themselver as ggrieved had prosecuted their ap- - eals to the 'Court of Last Resort.' "If the United States should be si dissatisfied with British prize court et ecisions as sustained by the privy"s ouncil, the British government ih sI repa;d to act in concert with the ti .nited States "in order to decide b< pon the best way of applying the el principle to the situation whici al ould then have arisen." fr To the American note in the case tr f the steamer Neches, which sum naly demanded the expeditious re mf lease of the American-owned good- N etained under the orders in counci~ fl "the invalidity of which the govern ent of the United States regards at d plainly illustrated by the present in- e' stance." Great Britain relnlied that te while these acts of the German gov- ge [HE WAR LAST WEEK' ALL OF WARSAW STARTS A HiUGE GERMAN EFFORT LFTEWARMY OF NICHOLAS rurning Movement Now Being De veloped is Attempting to Drive Slavs From Their Second Line of Defence and to Force Evacuation of Bug River Positions. In reviewing the operations of the >ast week that led up to the fall of iarsaw, a division of the fighting ront into sectors, similar to that of everal weeks ago, will again be nade and followed. Although the ltimate objective of all the Teuton rmies on this front was naturally X arsaw, each of them had a fune :ion to perform in regard -to a par icular objective, and it was a com Aination of this that was to effect ind did effect the fall of the Polish apital.. Therefore, the various steps aken can, in their relation to the hole, be best understood by follow ng the operations of each of the va ious armies. Around the Gulf of Riga. In the extreme northern sector, hat of Courland, the army of Gen. wing bmoic39Acetaoinshrdlumfwyp von Buelow is operatin., his left be ng at some point on the Gulf of Riga, his right extending down into uwalti Province in the neighbor ood of Augustowo. The operations )f this force have not been strictly igainst Warsaw itself. It seems rathe: a heavy raiding force, which, n addition to its offensive operations, prevents the turning of the German left, as was done by the Russians in the earlier campaign against War ;aw. Von Buelow's Minor Successes. Von Buelow's operations have been argely against the principal Russian :ties in Courland and the railroad running from Warsaw through Grod ao and Vilna to Petrograd. This riny has met with considerable minor successes. It has taken the town of Mitau, is seriously menacing te important gulf port of Riga and, although stubbornly opposed, has fought its way forward some little listance toward the railroad. But the railroad is still a long way off and it will probably be a month at least before it ca'n be reached, if it bver is. Some of its branches have been and probably will continue to be cut, but the main stem is intact. Railroad Line is Important. . The importance of this road is not primarily that it feeds Warsaw, for Warsaw being now in German hands 2eed no longer be considered in this :onnection. But the Russians will of iecessity fall back to a new line, aghting as they retire, and it is the light flank of their new line that will be dependent on it for supplies. In so far as the rest of the new ine is concerned, it would be but Little affected 'by the success of von Buelow's operations, as the roads hrough Siedlce and Volkovysk, and :hrough Brest-Litovsk, with their aumerous branches, can bear suffi ient traffic to bring up the necessary supplies. In .so far, therefore, as von Bue Low's force has influence'd the fall of Warsaw, it can not be said to have lone more than to have effectively ~uarded the flank of the forces oper iting in the next sector, that of the Karew from Lomza to the confluence f the -Narew and the Bug at Serock. Narew Affords Splendid Defence. Although the Narew is only about l0 yards wiide, it is sguarded, as are ost of the rivers of . Poland, by a Aide marsh belt on both sides. It, herefore, makes an excellent defen rive position. In addition to its nat iral strength its' defensive possibili :les have been greatly augmented by ;he construction of permanent foi-tl ications at .various points within upporting distance of each other. L'he principal ones are Lomza, Ostro enka, Rozan, Pultusk and Serock. May Cut- Off Garrisons. The Narew between Lomza and serock screens three railroads radi ttirag from Ostrolenka, all .of which re branches of the Warsaw-Petro frad road. It is, therefore, entirely ogical That such heavy fighting de reloped along the Narew front, as he cutting of any of the three roads ould almost certainly result in the solation and consequent capture of he Russian forces occupying at least e and probably more of these for ified places. What has been stated repeatedly n these reviews must be remembered -the objective of the German army oust be not territory, but men, the tussian army itself. Grant's victories the Wilderness, at Spottsylvania, old Harbor. and Petersburg, gave tim only territory and otherwise left im empty-handed. It was only when 4e surrendered at Appomattox and he army of Northern Virginia ceased o exist as a fighting entity that lrant's "hammering campaign" ould be put down as a success. It s with an understanding and realiza ion of this fact that we must view he German operations against War Germans Were D~riven -Back.. During the week beginning July 4 the Germans threw an overwhelm g force aainst the Russian line on he east bank of the Narew near tozan and succeeded in forcing a rossing with n considerable force in le neighborhood of Rozan. But the ussians, reinforced at this point, ut a sudden stop to the German ad ance by a- severe counter attack, rove back some of the troops that ad crossed the river, and held the thers in the heavy forest just east f the Rozan bridgehead. Official ports from Berlin have daily men .oned this sector, and every report rphasizes the severity of the fight ig, but no report was made of a suc assful crossing other than that not :1. The fall of Warsaw will, however'. >rce the Russians to retire from the arew to their new.line. The situa-E on is somewhat confused at present, tit the probabilities are that a strong a ussian rear guard is holding the ridgeheads at the various fortified yints while the main Russian army r ~cupying the front is retiring. The hting will be desperate, naturally. r troops engaged - in such a rear-t el as British merchant ships, irre mective of destination or origin of rgo, and without proper regard for fety of passengers or crews), it ems neither reasonable nor just at his Majesty's government should a pressed to abandon the rights f< aimed in the British note, and to t) low goods from Germany to pass p eely through waters effectively pa- F oled by British ships of war." n Great Britain offers, however, to t< ake a special examination in the ti sches case if hardship has been In- si eted. tl The British reply, in short is a u clination to allow free passage to ti ods originating. in Germany or a ti rritory undler German control; The eral cargo of the Neches originat- n in Belium. o is any idea of turning the Germal left and following it up the Rhine On the contrary the impression creat. ed is that these operations are mere ly a continuation of Joffre's efforts t wear the Germans down. . Germans at Yser and Verdun. Along the Yser canal front thi Germans launched a spasmodic at tack in the vicinity of Hooge, usin, fire projectors in advance of the at tacking force to clear the trenches The attack, however, was short-lived and this section of the front settle' back to its usual more or less quie state. In the Verdun section, both in th Argonne and along the Meus heights, the army of the Crowi Prince has blazed out against th French Verdun position. As this see tion of the battle front will probabl: receive considerable attention in dis patches a brief description of the es sential elements'of which it consists together with a resume of what ha been accomplished there recently may prove of interest. The Positions Around Verdun. The principal feature of the Ar gonne is a clay ridge about fort: miles long. This ridge is thickl: covered with undergrowth, and acros it transversely run the French lines The part of the forest traversed b: the battle lines is included betweei the roads between Varennes an Clermont on the east, and Vienne-le Chateau and Binorville on the wesi It is along this front that the Ger man attack was launched severa weeks ago, and it was again attacke by the Chown Prince this week. Th total front covered by the last attac! was about six miles, extending fror the small village of Bagatelle to point on the ridge locally called. L Fille Morte, about four miles south east of Varennes. The total net gain made by th Germans was greatest along the roa from Four de Paris to Varennes. I: depth it measured not more than 50 yards. Its Importance, therefore, i not great. The latest attack ha been along the same section of th line, being supplemented by the ai tacks along the Meuse heights an on the Les Eparges front. It is becoming more apparent ever day that the strong probabilities ar that neither the AUlies nor the Ge. mans can make any important head way against the other on the Frenc front. The intrenchments that hav been constructed since the presen lines have been taken put any dec sive action beyond the bounds of res son. It must bea question of agret ing to quit or one side wearing th other out. It is very generally expected tha1 afttr the campaign against Warsa has been concluded and the Russian driven beyond the Vistula and th Bug, the Germans will fortify thei own positions as they have done i the west, leave enough troops, an only enough, to keep the Russian where they are, and, strongly r( enforcing their western froit, insti tute a drive against some predetei mined point between the North Se and the Swiss frontier. This will probably be the case, a least in part. The doubtful elemeE beiag the sumber of troops that ca be spared from the east. The easi - ern front is very much longer tha the western, the country much mor variegated iii its topographical fee tures, and the battle lines therefor susceptible of much more mobilit and consequent display of more acut military strategy. The Russian army is, as far as w now know, still intact, and, once It supply of ammunition catches .up, wil have a striking power of great mc ment. These factors will control th available troops that Germany ca -detch for a western offensive. It I almost c'ertain, however, that som reinforcements will, reach the wes1 and that as a result the Allies will b made aware of the fact by increase pressure at some point-probably I; the Ypres section. The operations q the next two weeks will therefor have an added interest.. In the other war theatres but littl has happened during the week 0: which to comment. .RULE THE WAVES (Continued from page one.) with Great Britain on an almos equal rooting. England had on dreadnought and Germnany none. "England, however, was not caugh napping. She quickly discovered th German drift and immediately inau gurated the policy of constructing modern navy equal to that of an: two countries. Germany had dec'lei that she could build dreadnoughts a fast as England, because she had a good shipyards and shipbuilders, an< as much wealth. *But England forg ed ahead at a much more rapid rati and outdistanced her rival. After time it became apparent that Eng land had entered upon too ambitiou| a building plan even for the mistres of the seas. "Meanwhile the United States ha4 developed a considerable navy an< the British policy changed to 60 pe cent. more than that of any othel country except the United States which she placed in the list of friends with which hostilities were altogethel improbable. In this connection som4 may wonder whether in making th4 statement quoted above regardinj the weakness of the United State navy Count Reventlow did not desiri to leave the impression that the Unit ed States is only awaiting an oppor tunity to jump on John Bull rathe1 than to sneer at our navy. "In any event, there could be onl3 one outcome of the feverish race be tween Great Britain and Germany for naval supremacy from 1906 on Such a rna must wind up in a clast sooner or later. Germany's object ir attempting to surpass the British leet could mean only that she was :etermined to wrest from England the title of mistress of the seas. Eng and was equally determined that nc power should do so." Asked whether late official advices ndicate a large increase in the Ger an nav.y since the outbreak of the war, this authority said: "'The latest advices are that any attempt to determine Germany's resent naval strength would be a ild guess. Her shipbuilding plants re and have becn since the outbreak f the war working day a~nd night. [hey are turning out submarines as apidly as possible and are adding to he strength of the other classes of fighting ships. "The same thing is true of Eng and, of course. Whether Germany s building more rapidly than Eng and nobody on the outside knows. n England the shipbuilding plants are running all of the time and the workmen have been excused from en isting in the ranks on the grounds hat they can perform a greater duty y sticking to their regular avoca tions and assisting in turning out ew fighting ships." Three Children Burned. Three children were burned, eight ottages were desti'oyed by fire, and hree others dynamited to save prop erty in a fire which raged at Lake elavan,. a summer resort near Del avan, Wis. Three Die in Exposion. Two soldiers and a civilian were killed at the Fr'ankford government arsenal Tuesday when an explosion ccurred in experimenting with explo NEWS Of TE WA! SCATTERED ITEMS iATIIERE ABOUT WORLD CONFLICT Bi NEWS IN SHORT SPA0 t1 interesting Pointers About the Sign] can Things Which Oftentimes Es cape Attention-War Goes on i1 Many Fields of Activity-What th Various Nations are Doing. About 33,858 pounds of bomb were dropped one day last week by French aeroplane squadron of thirty five machines on and near the rail road station established by the Ger - mans for strategic reasons at Vig r neulles-les-Hattonchatel, the statio: r serving the region of the Calonn 5 trenches and that of the Forest o Apremont. The squadron, workin; in the face of a forty-mile an hou 1 gale, dropped, according to the offi I cial report, 171 bombs' of 90 kilc - grams each (about 198 pounds). Th Germans have been assembling larg quantities of military stores at th 1 station. The bombardment starte I several fires. All the aeroplanes re a turned to the French lines. I 8** British troops, are now in Serbi L fighting with the Serbians agains I the Austrians, so it was 'stated a - Liverpool on Thursday by Crawfor Price, the British eyewitness wit the Serbian forces. He said that th i British army authorities now pel 1 mitted him to make this announce ment. 5 * * s Shells have been dropping int B Arras for more than 250 days. Whe - the war began the town had a popt 1 lation of 35,000; in December tb population was 4,000; now it j r 1,000. A few score of the inhabi D tants have been killed or wounde - while the rest have.left, under pe - suasion of the military authoritie. i Those who remain sleep in cellar, B The streets are overgrown wit t grass. A few underground shops ar - doing business. -*8* American travelers who hav reached Greece from Turkey stat that the native Christian inhabitant of the Ottoman empire, the Armer ians and Greeks, are being evicte fro mtheir homes by tens of thot sands, driven to distant places, an r given the choice between acceptin Islam or being put to the swor Their houses and property are seize by Turks. Able-bodied men are b( ing drafted into the Turkish arm3 Many, Armenians, who are farin -somewhat worse than the Greek, have been massacred. 8** Gold is flowing into the Bank c t France from private 'hoards, in r( sponse 'to the request of the Frenc government. In two days more tha 10,0 a persons deposited gold. . Th certificates given for the gold stat that the exchange was made for "na tiohal defense. - Cholera is raging in Lemberg, r( cently captured from the Russian. Sand the Austrian and German troop have been withdrawn in consequenlc -so 'reports from B..trograd' state SCivilian refugees are pouring int SRussian territory. At Kiev the Len berg cabmen are plying their trad' The British Navy -Lea~ue is urgin the government to seize all Germat IAustrian and Turkish'stips detaine in~ the ports of the British empire "a fa set-off, in some measure, agains the destruction of British merchan vessels w-thout warning ~by Germal submarines." Plans are being made in German: for the formation of a central body acting under the direction of the In perial government, and composed o equal numbers of producers and con sumers, to improve the economic wa machinery ,during the next harves year, especially in regerd to the fix ing of maximum prices and the eon trol of the food supply. The govern ment plans to establish a systemati control of prices of all ..goods neces - ary to the conduct of the war, tak ing all matters of this kind out of thi hands of the inidividual states. B 8** Nearly $3,000,000,000 has bdei subscribed by the people of Grea Britain to the war loan, this being in the words of Chancellor of thi Exchequer McKenna, "by far an< away the largest amount subscribe< in the hi.tory of the world." Th< total number of subscribers througl the Bank of England .was 550,000 their subscriptions being $2,850, 000,000, while 547,000 persons havy subscribed $75,000,000 through the post office, 'with more subscrip tions thrrough the, latter channel ye to come. 8** -Reports from Rome state that ovei 80,000 Turkish wounded from the Dardanelles are now in Constanti nople and that tihe streams of wound ed which keep pouring in from the front are having a most depressinl effect on the spirits of the Turkisi troops who have not yet been sent ti the firing lino. It is said that an in fantry division which was recentl: sent to the Dardanelles from Smyrna marched through Constantinopli weeping. * * The Russian minister of financi has issued an order prohibiting the export of gold. 8** Sir Robert Borden, premier of Canada, last we.g attended, on the invitation of Premier Asquith,a meeting of the British cabinet, this being 'he first occasion on whicha minister from the colonies has taken part in a cabinct meeting in England. .*8* The entente allies have occupied 450,000 square miles of German col onial possessions since the war be gan, says an official Bruish estimate. 8**. Two British river monitors have wrecked the German cruiser Konigs berg, which found refuge from the British fleet last October in the Ruf ii River, German East Africa, go ing up the stream so far that only shallow draught vessels could gel near her. Aeroplanes directed the range of the monitors, the Konigs berg being surrounded by a jungle. 8** Huge new German aeroplanes are being built, according to news from Basle. They ai e stated to have three tiers of planes, with eight Maybach motors, such as are used in the Zep pelins. The engines are coupled in pairs, each couple driving a propeller, of which there are fou?. This type of aeroplane is said to be able to carry twenty men. The wholo ma chine is armor-plated. Six of these big machines are declared to have 'been completed. Reports from London show that much squabbling is going on in tile British cabinet over the question of resporsibility. for shortage of high explosive shell. Someonf the news ;uard action will be entirely sacri iced, if necessary, in order to retard he advance for a sufficient length of ime for the main army to make good ts retreat. Even when the advancing Germans 'orce the bridgeheads their work is iot done, and the Russian rear guard :an still make effective resistance by reason of the marshes and deep for ?sts with which the eastern bank of the Narew is fringed. The only fues. tion is, and this applies to all the forces in the sharper part of the Warsaw sailient: Knowing that ulti mate retirement was inevitable, have the Russians commenced the retro grade movement in time? Where Von Hindenberg Attacked. In the next sector, that immediate ly west of and encircling Warsaw, von Hindenberg drove forward by frontal attacks against fortified posi tions along the outer line of defen sive works of the city. To the north, in the rtgion of Novo Georgievsk, al though continuous fighting of the most severe character did not shake the Russian resistance. But the fall of Lublin and Chaten and the conse quent abandonment of a considerable section of the railroad decided the operations in the Warsaw sector proper, and on Wednesday Petrograd announced a retirement from the Blonie-Nadarzyn position to the de fenses of Warsaw itself. This move brought the end into plain view. It was but -a question here, as on the Narew, L1 the Russians delaying b) rear-guard fighting, while the mair army retreated behind the Vistula. Warsaw Situation Confused. On Thursday Berlin announced that the Russians had retired acros the Vistula bridges at ;Praga and Warsaw was occupied by Germat troops. 'Here, as along the Narev front, the situation is for the timi being somewhat confused. Report referring to the Russian evacuatior speak of the Russians still holding the front along the Narew and thE Bug and pivoting on Novo Geor gievsk. The situation that would b( created by such a manoeuvre woul seem too fraught with darger to b( possible. Another salient would thus be cre ated with Novo, Georgievsk as it apex and only a few miles wide al the base. If this fortress is still held the force garrisoning it must be e small one, intended only for tem porary occupancy in order to causm delay. Heavy Fighting to Continue. Although Warsaw has falleu il can not be expected that the fighting will suddenly cease. On the con trary, for some days, until the Rus sian retreat in safety is assured and until it can adjust itself to a ne% position, the fighting may be just a intense as during the last thre weeks. Russia has taken a terribl toll from the Germans in return foi the city she has lost, and will doubt less supplement her-pound of flest before her retirement is complete. Running southeast from the sectoi around Warsaw is the sector of th( Vistula extending along the railroad from Ivangorod to Cholm. It wa the successes along a section of.thit line that, more than von Hinden berg's activity near Warsaw- itself caused the evacuation. Railroad's Capture Spelled Success. On Sunday the Austrian troops who are sandwiched in oetween Gens Woyrsch on the west and von Mack ensen on the east, seized Lubim ant forced the Russians to abandon prac tically all of the railroad betweem Nova Alexandria and that place. The absolute need of this railroad to thE Russian position at Warsaw has beex explained in former reviews. It wil: therefore be understood that this suc cess sounded the death knell to Rus sia's continued retention of the linE she then held. Mackensen Comes to Life. Following close on the capture of Lublin, von Mackensen, having the week previous., in the battle of Kras nostow, forced the passage of the Volika and seized- the heights be tween that river and Cholm, advanc ed against the latter city, drove the Russians out, and occupied it. Thus practically the entire railroad from Chom to Nova Alexandria was ii German control. Northwest of Ivangorod the Rus sans have occupied a line consider ably in advance of the Cistula. They are being gradually forced back, how ever, and partly because of the pres sure on their front and partly through the danger of being flanked by reason of the German occupation of Warsaw- will soon have to falr back behind, if not beyond, the Vis tula screen. Should the Russians elect to give battle behind the Vistula on this front the Germans are apt to find the forcing of the river a serious opera tion, for, as explained in other re views, the steep ganks, the depth, width, and the swift current combine t'make the Vistula the strongest de. ensive barrier in eastern Europe. Linsingen Holds Down the Right. On the rest of the front, from So ol, along the upper Bug, the Zlota ipa and the Dniester to Bessarabla, here has feen but little change. Von insingen, who is in command of this ection of the Teuton line, is playing role similar to that of von Buelow n the north. His function is not to ttack, but to hold, so that the Ger nan right flank and lines of com nunication may be safe. This he has ucceeded in doing while his fellow eaders north and west have driven heir attacks home. Warsaw's Significance. As to the significance of the fall of Varsaw in its relation to a fossible >eace, no one can say. It depends argely how our sympathies lie as to hat conclusions we draw. At the ame time an event of two years or nore ago may be appropriately re alled in this connection. About that time a friendly protest vas lodged with Russia by France Ever the fact that, in constructing ier main line of defense against an .ttack from the west, Russia forti led the Kovno-Grodno-Bialostok rest-Litovsk line, apparently being villing to concede the impractica ility of the defense of Poland. France contended that, with the tussian line of resistance so far re aoved, an overwhelming force could rush her before Russia could offer ny diversion. The correctness of his reasoning has been amply dem strated. Russia therefore advanc d her line of defense to the War aw line of the Vistula, the Narew nd the Niemen. It is evident that, whether correct or incorrecting, Russia does not egard Poland is being an essential art of her defensive plan. If cor ct in this belief, Warsaw, provided ie Russian army es capes, simply eans so much more territory for erman occupation. If incorrect, sly time can show the result. French Active in Fecht Valley. On the western front the French re consistently maintaining the of msive in the Vosges mountains that iey initiated several weeks ago. The rincial line of attack is along the echt valley from Metzeral to Col tar. Although the Germans claims have regained some of the posi ons taken from them last week, it ems that the more important of iem are still in French hands, those der French control commanding te most important avenues through te valley. At the same time this French ovement is not of sufficient volume impor~anc-e to indi~ate that there RESERVE BOARD TO AID IN MOVEMENT OF CROP Will Lend Money to Banks Who May Use Notes of Farmers Secured by Cotton Certificates. Preliminary plans designed to make available the resources of the federal reserve system in the annual -fall movement of the cotton and oth er crops have been worked out by the federal reserve board. In a letter addressed to regional banks the |board have pointed out how the crop movement could be.financed. a It is shown by the board that no e staple commodity is subject to great er variations in prices than cotton. "Sudden and violent fluctuations " says the board, "are clearly to the s advantage of neither the loaning al banks, the producer, the manufac - turer nor the consumer. They offer on the contrary an inviting field for the speculator." As the federal reserve banks are I prepared to rediscount the'notes of e farmers and merchants secured by f proper warehoure receopts for cotton g and accompanied by evidence of in r surance, "it is suggested," reads a statement by the- federal reserve board, "that the federal reserve e banks point out to their members. e and to the publit generally, that e those who are engaged in cotton pro d duction, if they intend to take advan tage of the fisciliti-s offered by the banks for carrying cotton, should be gin at once to arrange for Its proper a storage and insurance es rapidly as t ginned." The amount to be advanced ,t per bale will be left primarily to the d judgment of each member bank. h The reservation of storage space I. e urged. "While there is not sufficient warehouse capacity . In the South,' says the statement, "to provide stor age at any one time for the entire cotton crop, it Is believed that there 0 are ample facilities for the proper a storage of all 'cotton that is likely to L- be pledged as securit; for loans. In e a normal movement of the cotton s crop warehousemen at concentrating [- points estimate that the maximum , storage required will not exceed 20 - per cent. of the total receipts for the 3. season." n. The federal eserve board advises h that though there seems "no reason e to believe that the world's present and potential supply of cotton Is out of proportion to requirements during e the next .twelve months, it is never e theless important because of our lack :s of adequate shipping facilities as well - as restrictions brought about by the d war upon free exports to all coun L- tries, that ample means be provided d for the proper handling and effective g marketing of cotton." . The statement directs- special at d tention to the marketing of the cot :-|ton crop. "While the yield of corn. r wheat and other, cereals promises to g be large, there is every reason to ex s, pect that these products will find a market in an orderly way. Cotton. however, is peculiarly sensitive to ab , normal conditions such as now exist in our export trade and It- is clearly h in the common interest that credits I based upon this crop be protected as e far as possible from the danger of e demoralization such as existed dur ing. the autumn of 1914. "No staplp commodity Is subject to grepster variations in price than Is cotton, which during the post twelve years has shown, according to figures based upon official quotations on thi 'New York cotton exchange, an aver age annual fluctuation of 5.38 cents -per pound, the maximum price range 0 during any year of this period being -10.4 cents per pound in 1904, and the - minimum range 2.65 cents' per pound in 1906. g "It should be noted, however, that Iwith two exceptions, there has been d no great difference in the average . price of cotton for each of these t twelve yeairs, the exceptions being .t the year 1905 v-hen the average price c during the year In New York was 9.8 cents per pound,. the lowest~of the twelve-year period, and the other be Sing the year 1910 when the average urice per pound was 16.45 cents; but :the average price for the entire Stwelve-year period was twelve cents per pound. r"Sudden .and violent fluctuations are clearly to the advantage of neith er the loaning bank, the producer. the inanufacturer nor the consumer. They offer, on the conti-ary, an In Sviting field for the. speculator, and e should the federal reser-e system, in -making possible the more norma' movement of the crop, be a contri buting 'factor in reducing these fluc tuations, it would have accomplished a great public good." -. 2 The carrying of products in behalf t of speculators Is not permitted undei ,the law and member banks can not e certify the notes .of speculators as I eligible since the act creating the i federal reserve board does not allow a the rediscounting of notes, drafts or 2 bills of~ exchange covering "merely ,Investni-ents." - The statement concludes: "The a board will be prepared from time to e time to pass upon such special phases - of the crop moving problem as mem t ber banks may present to It througi, the federal reserve agents, who are - brought into conta-et with the special econditions prevailing in the various Ssections of the country, and It will - adapt existing regulations to such . conditions as may have to be met in facilitating the normal and economic movement of the staple agriculturai products of- thecountry." . papers are again laying the blame for the trouble on Lord Northcliffe, It be ing charged that he. Is trying to fozce Priemier Asquith out of .office, so that Lloyd George may take the pre miership. The London reports say that Asquith is keenly annoyed over, the squabbling and is doing all he can to bring peace' in his official family. One hundred Indian troops of the British army have arrived at Kabul. Afghanistan, after a four months' march from Constantinople. The men were captured in Flanders by the Germans and were sent to Turkey in the hope that, being Mohammedans, they mignt join the Turks. But they remained loyal to Great Britain and finally escaped, heading for Afghan istan. They now intend to join their regimental depot in India, so i~t is re ported. *- 4 Large quantities of war munitions have reached Serbia. The Serbian National Assembly has voted a credit of $50,000,000 for- continuation of military operations. The Serbians are declared to be planning for an early offensive movement along the Danube-Save sector. * * Information which has been receiv ed in Rome shows that German Zep pelins have been transported to the Austrian coast of the Adriatic Sea, it being planned, so Italians have heard, to attempt a flight across the Adriatic and the Apennines to Rome. Preparations have baen made by the Roman authorities to repel the air ships. The Pope has ordered that the lights of the Apostolic Palace be dimmed or extinguished at an early hour. The casualty lists published in Ge: many show that the Prussian losses alone, up to the end of June, were 1.04.523. Four thousand, nine hun dred German national school teachers] have been killed in battle out of a1 SHUTS Off COTTON SOUTIHERN STAPLE MAY SOON BE MADE CONTRABAND 11G LOSS TO OROWERS During First Year of War Cotton Men, Including Shippers, Lost Nearly $235,000,000 - Prevdent and Administration Concerned Over Plight of the South. The city council of'Manchester at a meeting Wednesday, adopted a resolutiox demanding that the British goxernment declare cotton contraband. Four hundred million dollars in profits were made by the American farmers, grain exporters and millers during the first year of the European war, the treasury department an nounced Tuesday. Duing this period, however, the cotton growers and shippers lost nearly $235,000,000. These are prominent features of the department's yearly report on ex ports of foodstuffs and cotton. The favorable trade balance of the Unit ed States for the week ending July 31, exceeded $25,000,000. Little encouragement for the cot ton growers is seen in the expected announcement by Great Britain of the classification of cotton as contra band. One high official of the gov ernment Is quoted as saving that in his opinion Great Britain has decid ed to declare cotton contraband. The same authority expressed the opinion that the English government will shortly announce eoine plan look ing to the compensation of the cotton interests for the loss such action will necessarily entail. It Is an open question whether Great Britain will propose to pur chase a specified amount of cotton in excess of her'own requirements or whether some other way -to avoid a serious clash with the United States wilf be pointed out. The,fact thiat.the neutral countries in Europe are buying fifteen times the quantity of - cotton sold. to Ger many direct, it is contended, has con vinced the English government that Germany and her alies are receiving the staple through neutral ports. An expert of the largest powder plant- in timerica is authority for the state ment that from 75 to 90 per cent. :of the, weight of all explosives bolng used in Europe at this time is derived from cotton. It is apparent that the preiddent and other administration officials are deeply solicitous for the welfare of America's leading staple in the e isting diplomatic entanglement with Great Britain and raliz the im mense value to be derived by the cot ton producing states. from an agree ment whereby the staple will find its accustomed outlets. Congressman Fred L. Blackmon, of the Fourth Alabama district, has re ceived a' letter from Secretary;'of State Lansing that efforts are being made by the government to relieve the situation' c.used by the- English embargo on cotton. Congressman Blackmon for sev&al weeks, has been trying to Impress, upon the administration at Washing ton the ,serious condition which 'the. eotton growers. of the South may face' unless - England's policy is altered. His last letter, sent to the president, was replied to personally by Secre tary Lansing. The government, says Secretary Lansing, Is getting reports of foreign markets for cotton from -:onsular offices for the purpose of ad vising shippers where inarkets for their-holdings may be opened. London reports'- Tuesday:' Diplo matic correspondence between Lon don and Washington concerning de lays to American commerce, and Great Britain's orders in 'council will bt published hero to-mortow -morn ing. The foreign office-explains thit all 'hases of controversy, except with re gard to cottdn, are covered in the British notes, and that when a deci sion is arrived at on the botton situa 'ion a ne w note probably will be sent. Yo question isigiving the British gov' enent more vexation than cotton. The government already has Indicat ed 'that Its decision not to treat the staple as contrahand is not Irrevoe able, but It is not yet convinced that the alternative might not cause more trouble and friction than' the present ;ystem of detaining cotton suspected of being destined for an enemy coun try. AIRMEN ADD TWO NAMES TO BOARD OF INVENTORS. Hudson Maxim and M. B. Sellars are Nominted for Daniels' Naval Aloard. The nomaination by the Aeronauti cal Society, at the request of Secre tary Daniels, of Hudson Maxim ,and Matthews B. Sellars for members of the Naval Advisory Board on Inven tion brings the membership of the board up to seven, the other members being Thomas A. Edison, Alexander Graham Bell, Orville Wright, Henry Ford and Charles Steinmetz. The Aeronautical Society Is the first of the various engineering and scientific societies to respond to Sec retars Daniels' request that they nominate from their membership for places on the board. Other nomina tions expected will bring the total up to about twenty, and Secretary Dan iels hopes to have the board com plete and riady for work by Septem ber 15 at the latest. A jneeting of the board will then be called in Washington to organize. It is expected that an executive committee will then be chosen from the board membership which will supervise Its workings and will meet in Washington at frequent intervals to take up important questions with aval officers and handle requests by fficers for advice or assistance on ay subect, referring such requests o experts in that particular line. London Dallies Feel the War. Decreased revenuo has caused the Lnon newspapers to decrease their sizes. The Po!'t, Tim's. Telegraph nd Standard Thursday tced ten to welve pages. whereas formerly they ontained about twenty. Town Destroyed by Cruisers. Paris reports t'aat the town of pelia was shelled and destroyed by rench cruisers. It was supposed to e a surpply depot of enemy subma rines. Preparing American Answer. Washington. Wednesday, says state epartment officials are busy prepar ng a reply to the British notes re ecived recently. British Transport Sunk. Berlin says a German submarine aas sunk the British transport Ar ieuron at the Dardanelles and that