The watchman and southron. (Sumter, S.C.) 1881-1930, October 31, 1914, Image 3
Struggle in France and Belgium of
the Most Sanguinary
Nature.
Ofr't'h l \l, iii i.i.KTiNS indicatk that hug M.I.IIIS are holding
TUE gkrmans in check AND ARK in ilk ting TKIIIUULI1
mmsks ? GllllMANS contINt i , to wage an oi'KKNSlV? cam*
i?aign?vSiur loaded with kmtgi rs destroyed hv mini:.
MIST CAITl HL CALAIS.
knltvr (MM ?M to Proceed Hc
gu rille*? of Life or Co?t.
London, Oct. 27.?The rnptute of
Calais has been ordered by the K*.iso:,
according to a Times dispatch nun
Copenhagen, "Irrespective of expendi?
ture of life or material."
Fl Riol s FIGHTING CONTINUES,
German* Make Slight Gain* With
Heavy Toll of Life.
Paris. Oct. 27.?Furious night at?
tacks mark the battle between Os?
munde and Nieuport, where the Ger?
mans crossed the iser and are trying
to break through the steel wall pre?
sented by the allies' forces. The Ge'
mans are still forcing the lighting In
the northern sphere, but now are
t>elng compelled to stand violent
counter attacks. The German gains
near Lille and on the Yser are out
of proportion to the losses sustained in
killed, wounded, and mlssln*. The
heaviest lighting is now in the neigh?
borhood of Labassee and Lens, south?
west of Lille, between Arras and Bray
and along the Meuse river. Alor,: the
coast warships have been driven from
their moorings by shells from the
heavy German guns.
Germans Attack Warsaw.
Berlin. Oct. 2.?Fighting is in pro?
gress about the walls of Warsaw and
Zeppelins are bombarding the city.
The great French fortress at Verdun
has been Isolated and It Is Impossible
for help to reach that stronghold.
Germans who crossed the Yser re?
pulsed tierce counter attacks of the
allies and are making slight prog?
ress. Germans occupied Dixmunde.
but were driven out hy the allies'
shells.
Mnow and Battle Storms Haging.
Petrograd, (?ct. 27.?The defeat of
the Germans In a flanking movement
north of Warsaw was ofllclally. an?
nounced today. The Oermanr. have
retreated toward the Thorn In Fast
Prusala. Heavy snow storms a.e rac?
ing along the battle front In East
Prussia and Russian Poland, but light?
ing continues with losses to both sides
which have been enormous. It is re?
ported that three lines of German
trenches have been captured.
French Take Offensive In Alsac.
London. Oct. 27.?A llerlln news
dispatch states that the French artil?
lery Is bombarding the German posts
In Sc ithern Alsac all the way from
Belfort to M elhausen. The French
are trying to storm the German po?
sitions, and the latter nre energeti?
cally building fortifications in all the
villages and placing heavy artillery in
position. The Cologne Gazette re?
ports that the Germans in northern
France near Arras have pushed the
fighting- thirty-one miles further west?
ward.
Allies Retire from Coast.
Copenhagen. Oct. 27.?A news dls
petch states that the allies have re?
tired from their positions along the
coast.
Xu-irlan- Reinforce Germans.
London. Oct. 1*;. Austrian troops
are being sent west i<? ibl Germar.'?
Im Helglum. An Amsterdam news
dispatch states that ten thousand Aus
trians arrived at Ghent Sunday,
Awful urnagc on Yaff,
tendon. Oct. 27.?The news dla?
patches tell of awful carnage along
the Yser cannl. There wi re twenty
live hundred German hodiSS in tin
canal Sunday morning after an .ill
night battle. Many wire drowned
? .fher* w? re bji> gnetted. The w a ? ? i
In the ?anal w.,s bloody and the Street!
of I Mxin'i leb- weie strewn with dead.
\u bJsjmi Mm Um an in op| asad man.
sometime-; a bun.?red mis apart,
offener \\ ? n>\ tu hand, fightwu. with
iuomik i i af Ihrawing thai? Opponent!
int<> aannl hodlly. The Uermun losaes
ajajajsj the annnl at! rntlmnted al
llftaea Ihouaand.
I run h Gain \<l\aiitam
Paris. ? ' ' -7 The oflh i ?I si i ti
m. lit issued a? i p. m says; "Hard
lighting Is racing all abou th? ?real
tattle Una In Frim.- a-ai Helglum. H
In particularly violent in IM north?
ern sph? re and In the n glon around
Lens and between Vpres and Uouhrs
where the allies have made progress.
In the \icinity of Nancy the allies have
taken the offensive. At the center an
artillery duel resulted In success for
the ullius, several German batteries
being smashed.
Greece Angers Italy.
Rome. Oct. 27.?The tension in the
relations between Italy and Greece
was increased today when the Italians
and other powers of Europe were no?
tified by Groece that it would occupy
northern Kpirus to suppress anarchy
following the downfall of the Alban?
ian government.
Refugee Sldp Blown Up.
London, Oct. 27.?Twenty-five hun?
dred survivors of the French ship
Admiral Ganteume, which was blown
up by a mine off Boulogne yesterday,
arrived early today. The vessel was
carrying refugees from the war zone
in northern France. Five hundred
and forty-three were drowned.
(ion Von Moltke 111.
Berlin, Oct. 27.?It was officially
admitted today that Gen. Von Moltke,
J chief of tho German general staff, is
suffering from liver and gall com?
plaint, but it is declared his illness is
i
not causing any anxiety.
British Wurships Damaged.
Washington. Oct. 27.?At least three
British warships off Nieuport have
been damaged by the German artillery
ashore says a wireless message from
the German foreign olflce to the Ger?
man embassy. The British squadron
[ was forced to retreat out of range.
The allies suffered great losses at
Ypres and the Lille district and north
of Arras. There have been no decls
' ive results on eastern frontier.
ORDERS STEAMER RELEASED.
Government Satisfied of Innocence of
Vlolutlon of Laws of Neutrality.
London, Oct. 2t>.?The British gov?
ernment, satlslied after an examina?
tion of the innocence of tho destina?
tion of her cargo, has ordered the re
1 lease of the American oil tanker
' Brindllla, which will be permitted to
proceed to Alexandria.
The question of the transfer of the
vessel from the German to the flag of
the United Sttaes will not bo raised
by the British government.
The Brindllla. carylng illuminating
oil, was seized by the British cruiser
Caronia and taken Into Halifax Octo?
ber 19. It was said today the Ameri?
can tanker Platuria, seized under
similar conditions, would be released
as soon as the Danish government
satisfies the British foreign oillce the
vessel's cargo was consigned only to
Denmark.
SUGAR TRUST ENJOINED.
Governor of Louisiana Starts Pro?
ceedings Against American Refining
Co.
New Orleuns, Oct. 27.?The govern?
or today Hied suit here to enjoin the
American Sugar Rclining Co., from
doing bulness in Louisiana. He
'asks that a receiver be appointed for
I the concern.
CHARLESTON WELCOMES BMP.
First Vplnil from Pacific Const Via.
Panama Arrives.
('hal b stem, Oct. 27.?Thousands
lined tb.' water t'nml, whistles blew
and syrens shrieked a welcome as
lb.- American-Hawaiian steamer
Washlngtonlnn entered harbor today
from the Pacific coast through the
I'.maini ('anal. She is the litst vessel
coming through the canal making
regular call.
FROST TONIGHT.
Weather Bureau Predicts Cold Snap
gl Car SontIi Ii? Florida.
Atlanta, Oct. 17.?-The co|t| snap ar?
rived last nlghf und uverconts are Ihr
rule today, forecast.-, for tonight arc
for frost, extendlnn to the gulf coast
and northern Florida. Freeslnn lern?
peratures are predicted for tin- upp r
Mlsalaslppl valley and eastward.
VUfrt Real Snow.
Chicago, net. if,?The first real
snow of the season was reported a(
Oreen May, Win., in the Lake su?
perior region today in telcgrame i<>
flic local weather bureau.
FAMINE MENACES BELGIANS.
NEARLY EVEIIY MILLION FACE
WANT.
Hi ami \\ hillock Report? Cities Have
Two Weeks' Supply und Country
Districts EyQU Less.
Brussels, Oct. -U. (via Lodon).?
Famine menaces nearly 7,000,000 per?
sons In Belgium unless they receive
immediate help from the outside.
Brand Whitlock, American minis?
ter, asserts that less than two weeks'
I
food supply remains in cities, while
conditions in country districts are
worse. Hu reports from Xamur, Lou
ivain and Lieft say affairs in those
cities are worse than In Brussels.
Nearly half the people who have re?
mained in Belgium are wandering
helplessly from town to town seeking
shelter with friends and relatives.
Malines, which formerly had 60,000
inhabitants, has but few undamaged
houses standing. The same situation
exists at Nanuir and Louvain.
The road from Antwerp to Brussels
is black with people moving in and
out. Thousands on foot are carrying
bundles or pushing dog carts, moving
with no definite destination.
Belgians of all classes appear dis?
heartened. Old women and cripples
may be ?< f>n sitting near their shat?
tered homes in Malines nodding mute?
ly at the cathedral with its shattered
windows and tottering walls. Similar
conditions are found in small villages
between Antwerp and Brussels.
Few stores are open. Villages that
stood near contested forts literally
wero razed. Many inhabitants remain
living In rudely constructed sheds or
tents. In Brussels the streets are
filled with German soldiers and ma?
rines. Automobiles of the officers
dash in all directions.
By an official order there have been
posted throughout the country names
of Belgians and British sentenced to
imprisonment for insuhs offered to
German soldiers.
Others are warned to obey military
orders and are advised that the Ger?
mans have no intention of seizing non
combatants. The Germans pay for
everything obtained in stores.
ENGLAND FOR FREE TRABE.
Cotton Specifically Exempted From
List of Contraband and Therefore
Safe for Commerce.
Washington, Oct. 26.?Great Brit?
ain In two notes presented today to
the state department by the British
ambassador, Sir Cecil Spring-Rice, de?
fined her attitude toward commerce
between neutral countries as* one of
rigid endeavor to give every security
possible in the Interest of free and
undisturbed trade.
The essential points in the British
attitude are:
American shippers should take pre?
cautions to show the exact destination
of their goods, mentioning either a
specific consignee or a neutral govern?
ment in bills of lading. Great Britain
will be guided by the American doc?
trine of continuous voyage or "ulti?
mate destination' in respect to com?
merce between neutral countries in
articles generally known as condi?
tional contraband.
Cotton, specifically mentioned ar
neither absolute nor conditional con
I
traband, can be shipped in neutral
vessels not only to neutral coutries.
but to all belligerents without moles?
tation.
FREE GRAIN BILL PASSED.
Mcastirc to Furnish Farmers Grain at
Cost Carries Appropriation of $25,
000.
Columbia, Oct. 28.?The bill from
the ways and means committee pro?
viding for furnishing seed grain to
farmers at cost was passed to third
reading yesterday by the house. The
I ill appropriates $25,000 for the pur?
chase of seed grain which is to be dis?
tributed by the commit loner of agri?
culture at cost and the State protect?
ed from loss by Hens on the grain
crops.
THEIR APPEAL DISMISSED.
Supremo Court Throws Out A. C. I,.
Corporation Appeal.
Washington. Oct. 2b.?"Dismissed
for want of jurisdiction," was the way
the United States Supreme Court to?
day handled the appeal <>f the Atlan?
tic c.ast Lumber Corporation from
the decision of the State Supreme
? 'ort. upholding the ruling of a low?
er court that the corporation had for?
feited its contract with O, g. Mlnshew
and others, Tbc corporation some
years ugu oh! tlned a grant t<? cut tim?
ber under certain conditions on land
now owned by Mlnshew. Mlnshew
wit into courl claiming that the con?
tract bad be n allowed to lapse ami
was therefore null,
When ibis contention was sustain?
ed in the state tribunals, the corpora?
tion appealed )?. the Federal Supreme
< mm i mi i lie grounds i hat it bad been
deprived ol its proper! > without due
process oi law.
Why The Bond lasuo should be Uc- i
feuted. j
(Some of the strong practical objec
tions to the proposed bond issue by
tlio South Carolina legislature are
clearly stated In the following article
by a South Carolina banker, who has
long been a particularly close student
of pul'lc affairs.)
The News and Courier.
Upon the proponents of the bond'
issue rests the burden of proof to
shuw that the State and its citizens (
will be benefited by the proposed!
issue. Before the general assembly
should submit the question to the
people, and certainly before the peo?
ple should approve it, there should be
no reasonable doubt that benefit will
accrue.
Granting that the farmers will
beneiit, can it be demonstrated that
all other classes will participate in
that beneht Unless this can be done,
the constitutionality of the issue will
be most seriously questioned and will
be tested in the courts. That means a
delay for many months, for a case of
such magnitude, involving from twen?
ty-five to thirty-five millions of dol?
lars, as the issue may be, is sure to go
to the federal supreme court. Able
and disin.tersted lawyers are of the
opinion that the State has no right to
issue bonds for the assistance of one
class of her people, and certainly be?
fore any of the bonds are accepted by
careful investors, including the banks,
this question of constitutionality will
have to be decided by the highest
courts.
It is not proposed, it may be pre?
sumed, that any effort will be made to
dispose of this bond issue to outside
investors, but to place them with the
banks of the State. It is easy to
point out that it will be impossible to
place them with the usual class of
bond buyers. It has been pointed out
that certain municipalities in this
State and adjoining States have re?
cently floated bond issues, but these
bonds are of an entirely different class
from the proposed State cotton bond
issue; the municipal bonds are floated
upon municipal utility plants or for
p-.rmanent improvements, and are
long-term issues, suitable for the in?
vestment of life insurance company
funds. This is not the case with the
proposed cotton bonds, which will run
for only a comparatively brief period,
and will have no attractions for the
usual class of bond investors.
According to the press dispatches
the committee sent on to Washington
has received assurance that the pro?
posed bonds will be acceptable as se?
curity under the federal reserve act.
So far so good. But let us see just
what this amounts to.
It is true that the federal reserve
act permits the federal reserve banks
to buy State bonds and notes, and
when the federal reserve banks are in
operation this is going to be a good
provision for the State which, like
South Carolina, have to borrow mon?
ey each year; in other words, instead
of borrowing every year from local
Institutions the State can probably
place its notes with the federal re?
serve banks, provided the reserve
banks have surplus funds to invest.
But the reserve banks are not yet es?
tablished, and when they are in op?
eration it will be a long time before
they will have sufficient surplus to in?
vest in this manner. They will cer?
tainly not do so at the beginning of
the system, as the capital is to be
paid in by installments, and heavy de?
mands will be at once made upon the
reserve banks for accommodation by
the member banks u\ this section.
The assurance given the South Car?
olina committee, therefore, simply
means that South Carolina banks,
members of the reserve system, can
use these bonds as collateral with the
federal reserve banks. But the (
amount of indebtedness?discounts
and rediscounts?which a member
bank may incur with its federal re?
serve bank will he limited; the act
does not fix it, but it is left in the dis?
cretion of the federal reserve board.
This limit will be a limit that is with?
in the bounds of safe banking, and In
calculating what the limit will be it
should be borne in mind tl~M practi-l
i
cally every national bank likely to
come in the system has already out?
standing not only its bond-secured I
currency, but its full proportion of
emergency currency, all of which must
bo taken into acconut as liability in
addition to the bills payable which
these bank . may owe to their north?
ern corespondents; most of them now
beyond the limit of the law in this
respect. Even should the federal re?
serve board be so liberal as to per
mit an 0\ er-cxtension of credit to the
banks of this state, based on cotton
bonds, it Will be a most venturesome
bank which would take advantage of
that opportunity, and it Is not believ?
ed that many of them would do so. It
v. ouhi be difficult to conceive of any?
thing that would so quickly bring
about a lack of confidence in the
banks, ami that Is the worst thine
that could happen just now.
< ?n the other hand, it does r.ot ap?
pear that with the use of these cotton
bonds the banks could obtain any
more credit than they ?an now obtain,
111 other Winds, the federal reserve
act. as now amended, permit* the most
liberal use of the discount privilege,
with commercial paper as security,
and the notes of the member banks,
secured by th? lr customers' paper. In
turn secured by warehouse receipts.
Will give the member banks as much
credit with the federal reserve banks
as they can safely secure with cot?
ton bonds as collateral to their notes.
To put it plainly, a more liberal dis?
count privilege would lead to danger?
ous inllation; and it is likely that the
banks in this State, having In the
spring mace their usual loans in New
York and the East, and having since
increased these loans and also having
taken out the emergency currency,
are now carrying as large a liability
as they can safely do. Technically
this would seem to apply only to the
national banks, but In fact it applies
very generally to the State banks as
well which have borrowed through
national banks in this State and else?
where. However, none but the na?
tional banks, and such State banks as
enter the federal reserve system, can
make use of the cotton bonds with the
federal reserve bank.
It would appear, therefore, that
even if the cotton bonds are issued
and the issue held to be valid, the
banks are not in position to utilize
them for the relief of the cotton pro?
ducers; certainly to no greater extent
than they could utilize warehouse re?
ceipts if the federal reserve banks
were in operation. Except through
the banks, how can the State put
out these bonds? Can the State sell
an issue of $25,000,000 or borrow
that amount on the bonds and deposit
the proceeds in the banks of the State?
This is not, in the judgment of the
best posted financiers, possible; and
were it possible the S^ate would not
be able to protect itself by a lien on
the cotton of any kind.
The only other scheme is to pay
out the bonds on cotton as purchase
money or a loan. Undoubtedly the
State could get rid of its bonds in tnis
way?or at least some of them?but
the writer would prefer to have a bale
of cotton, with a market price of six
cents, than a $50 bond of this sort.
'Such a bond issue would clearly be in
i violation of the provision of the fed
[eral constitution which prohibits any
State issuing a bill of credit, ^nat is
the Bankhead scheme, and it is a wild
one.
In this connection it should be said
that the fact that Mr. Harding, mem?
ber of the federal reserve board, has
given certain assurances to the South
Carolina committee does not inspire
any confidence at all, for Mr. Harding
is on record as having endorsed the
Bankhead plan, and that endorse?
ment is sufficient to nullify confidence
in his judgment.
As a practical matter of finance it
has been shown that the bond scheme
will not relieve the situation. Even if
it would relieve the present money
stringency in this State, what effect
would it have otherwise?
With the State taking care of his
cotton crop this year by what is
practically a valorization plan, the
farmer would be tempted, even if he
reduced his acreage, to fertilize as
heavily as possible next spring and
produce as much cotton as possible.
The result would be that next year,
and as long as the war lasts, the State
would have to take care of the cotton
crop, piling bond issue on bond issue.
But it may be said, the war will end
[before that comes about. Well, if the
j war ends within six months, the de?
mand for cotton will readjust the mar?
ket and no bond issue at all will be
necessary.
As a matter of equity?laying aside
all questions of legality and constitu?
tionality?let the bond issue be con?
sidered. The farmers constitute the
! most numerous class of our citizen
jship, but their preponderance in num?
bers does not give them any prior
Claim to the paternalism of the State.
I There are hundreds of railroad men
out of employment in this State, be?
cause the cotton crop is not moving
to the ports and freight has fallen off;
there are hundreds of merchants, j
town merchants, town merchants, who
do no business with farmers direct,
who are suffering; there are hundreds
of lawyers whose clients are unable
to pay fees; there are hundreds of
clerks out of work; there are hun?
dreds of real estate dealers with no
incomes now. Any bond issue for
these classes?
As a matter of fact, the agitation
for extreme legislative measures has
come from one particular section of
the State, and one particular class of
farmers in that section?the rich Pee
Bee section and the large land-owning
class of that section. It is true the
bond scheme was proposed In the sen
ate by a senator, usually most con?
servative, from another part of the
State, but this does not wipe out the
fad that the lobby which has been
maintained at Columbia, and the so
called mass meetings und conventions
In Columbia have been composed of
men of extensive planting interests in
the Bee Bee section. Some of the
Bee Bee farmers, it is said, are holding
from li\e hundred to two thousand
bales of cotton, and they are able t<?
either hold it or to take their losses;
certallil) as able to take their losses!
STOPS AEROPLANE TESTS.
Says Factories Too Rasf Building for
European War: Manufacturer- Say
Not?Only One Firm Has European
Contracts.
Washington, Oct. 26.?Cancellation
of the aeroplane competition the
army signal corps planned to hold at
San Diego, Cal., with the object of
purchasing the best three machines
shown was announced at the war de?
partment today.
Officials suggested that American
builders were too busy constructing
machines for Europe to become inter?
ested in such a contest.
Lieutenant Colonel Beiber, at San
Diego, notified Washington that only
one entrant complied with conditions,
forcing an abandonment of the compe?
tition. There will be tests, the colonel
reports, without any obligation to par?
ticipate on the part of the United
States.
Makers are Displeased.
San Diego, Cal., Oct. 26.?Aero?
plane manufacturers gathered here
for the government's proposed aerial
competition refused today to compete
without a prospect of cash prizes and
contracts as had been planned. Army
officers offered to conduct the compe?
tition, but the manufacturers declin?
ed to risk their machines without any
certainty of reward.
The manufacturers scouted the idea
that American builders were busy
making machines for Europe. Only
one manufacturer, they asserted, had
European contracts.
DELAY PROVED COSTLY.
Germans Failed to Press Their Ad?
vantage.
j Petrograd, Oct. 27 (via London).?
Failure by the Germans to utilize an
i opportune moment for an attack on
J Warsaw, after they had approached
! within eight miles without being dis
1 covered, turned the tide of the Ger
i man invasion of Russian Poland, ac?
cording to reliable advices received
from the front today,
j Russian generals are absolutely at
a loss to explain the German strate
j gy in delaying a night attack until
the opportunity was lost.
I They express admiration of Gen.
von Gorgens lightning advance of
five German army corps over the dif?
ficult swampy region approaching
Warsaw from the southwest. Almost
within sight of the city, however, the
enemy suddenly decided to delay the
attack, and that allowed the Siberian
! and other Russian reinforcements to
: give adequate protection.
SIXTY-ONE MEET DEATH.
Explosion Kills Three Score in Coal
Pit.
Royalton, 111., Oct. 27.?A total of
j61 dead is shown in the casualty list
i issued late tonight by officials of the
Franklin Coal and Coke company at
I whose mine near here 300 men were
entombed at the going to work hour
this morning.
The decrease in the number of dead
from earlier estimates were account
I ed for by the registration tonight of
scores of miners who escaped during
the day but who were too busy as?
sisting in rescue work to answer to
, the roll call of rescued.
Twenty minutes before the explo?
sion 34 6 men went into the mine, only
the last cage full of the day force re?
maining on the surface. Tonight 24
jbodies had been recovered and 37 men
were missing. Mine officials conceded
that the 37 still were entombed and
never would be brought out alive.
FINAL R. R. DISSOLUTION.
Trustees Elected to Board of Directors.
Boston, Oct. 28.?The annual meet?
ing of the Boston and Maine railroad
stockholders today marked the final
'dissolution of the New Haven merger,
when the trustees named under the
dissolution decree were elected to the
railroad directorate.
More Cattle Diseased.
Xiles, Mich., Oct. 28.?Thirteen
more head of cattle have been dis?
covered afflicted with foot and mouth
disease in addition to the nineteen
head Flaughtercd Tuesday in the af?
fected counties of Michigan and Indi?
ana. It is hoped the backbone of the
plague will be broken within a week.
as the small farmers of the low-coun?
try ind the Piedmont ction. It
should be remembered the Pee Dee
has another money crop besides cot?
ton?tobacco?and ha? for the last
few years been in prosperous condi?
tion.
Finally, there is only one thing that
will restore normal conditions in this
State, and in this country. Acreage
reduction, by force of law, as well
enough, and a State-supervised ware?
house system would be of great bene?
fit. But there is only one thing that
will restore normal conditions. That
is peace in Europe. Until peace is
declared we may as well make up our
minds to take our medicine, even if
that medicine means bankruptcy for
hundreds and that is just what it
means.