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m ?TMTER WATCHMAN, Established April, 18*0. "Be Just and Fear not?Dot an the ends Thon Alms't at be thy Country's, Thy God's and Troth's." THE TRUE SOUTHRON, Established Jone, 1SM? Consolidated Aur. 2,1881. VoLXLI. No. 8. The Russians Claim a Mighty Success in Galicia 0 Czar's Forces Capture 17,000 Prisoners and 14 Machine Guns in Battle on Sereth Riverf Driving Enemy Backward. Austrian Capital Surprised at Action of United States in De? manding Recall of Ambassador?State Department Not Satisfied With Explanation Submitted From Berlin on Arabic Stoking and Will Send Note to Germany Stating United States' View?Little Change in Southern and West? ern Battle Fronts. Petrograd. Sept. 10.?TJtere Is great rejoicing over the Kussign \lctory In Oalkla. It la officially reported that the Russians gnptured sevaAe* n thous end prisoners, fourteen ^|-uvy guns ai l nineteen light guns In |h.e week's operations on the Sereth rftver. The Germans retreated to StryiW, hotly pursued. A German aircraft squad? ron attacked Klga Wednesday night but was driven off before doing serious damage. \ AU8THIANS (.HI)ATI.Y SURPIUS ED. Demand for He??!! of Ambassador Dosuha i'reales Sensation In Vienna. Amsterdam. 8ept 10.?A dispatch received today states that the demands of the United States on Austria to re? call Ambasador Dumb a was receiv? ed with great surprise there. Imme? diately on the recelptt of the Ameri? can note Foreign Minister Burian con? ferred with Emperor Frans Joseph. It is stated that Austria will recall Ambassador Dumba. but It Is Improb? able that a tuccemor will be appointed at present, affairs at Washington be? ing left in the hands of embassy at - ? ? ? ? i German Spy Executed. I.ondon. Sept. 10.?A German spy executed by shooting this morn lag. A Geneva dispatch reports that spies are being arrested in all parts of Hwltserland. \IU IIIDAI D PLEADS IGNORANCE. War Coranpoadent Who Carried Damls't letter K.ys He Was Do? er! red. Chicago. Sept. 11.?James Archi? bald, the American war correspondent who carried the letter which resulted In the American demand for the recall of Austrian Ambassador l>umha has cabled a full defense of himself from Falmouth. England, asserting that he had no knowledge of the contents of the letter that Df DSMBlbe was send? ing to the Austrian headquarters through his klndn.-ss He thought it asked the Austriuns to grant him privileges at the front. REKNSTOREF NOT INVOLVED. He I>cnlos I -dug An Idbald as Mes? senger to t.criiuuiy. New York, Sept. 11.?An emphatic denial was made today by German Ambassador u.n llernstorff that he used Archibald as a message bear* r to Berlin. "I ?11*1 not thinl. u i said Mr. llernstorff. New York. Sept. 11.?The livening Bun publishes an Interview n,is after? noon \ 'th German Amhas^idor Kern? st or ff, who Is quoted as aa^itu; that it there Is u break in diplomatic r.la tlons between United States Ger? many it Will be followed by war." i - many has made important oonosasions In dlffereneea to I'mt* d gftesy*1 Am? bassador Bernstorff l.s? * i u o t e*l as sav? ing. "In agreeing tint no passenger ships will be submarined unless there are attempts to escape or ram win Ship. This w is achieved by diplo? macy, if dipiom >tlt ressUoas are broken, submarine commander* will he instructed to sink everything ihej ?ee. Of course this would mean wai within two or three days." NEW Ht SSI AN CABINET. Reaetloiuirle? to He Retired ami ( oal Itlon War Minister I nrinol Petr?'grad. Sept. 11.?The Kassian cabinet resigned today ami a coalition cabinet is being formed, which will Include some former cabinet m*m b*rs. But It is exp* et.-d tli.it Premier Onreypnkin. who has always been re garded as Mureaucrat ami a naction arv will retire from artiw service. Minister of War I'olivaitof cid Kor? elgn .Ulnlster Sa/nop/ sign u. expert ?d to be retired. It is reliably report od that tho Czar has been planning these changes for c.er a month. The new cabinet will be known as the war ministry." A munitions minis tcr will probably be added. ?ER VIA THREATENED AGAIN, German Force on tho Frontier and Attuck F\|>octcd. I^ondon, Sept. 11.?A dispatch from I'm da pest announces that a German force has reached the Serbian front.1 and they are about to open an attack on the Servians. British Steamer Submarined. London, Sept. 11.?The British steamer Cornubla was submarined I last night. The crew was saved. BKRNSTORFF AND LANSING CON? FER. Refuse to (live out Information, hut Humored That Arbitration Will he HeMortetl to. Washington, Sept. 13.?Ambassador Bernstorff conferred for thirty-live minutes with Secretary Irnsing to? day. Neither would state what took place at the conference. A*?ked if things were at a deadlock Ambasador Hernstorff said "No and they never will be while I am alive." A report circulated this afternoon after the conference that the United States had agreed to arbitrate the question of lia? bility arising from the Arabic case. WILL DEMAND ARBITRATION. Germany Will Insist That Arabic Case Ik* Submitted to Hugue. Washington. Sept 13.?That Ger? many will insist that the question whether the Arabic, which was sub? marined, was a hostile vessel to Ger? man submersibles, be submitted to arbitration became known today on the highest authority. Ambassador von Bernstorff will make such repre? sentations to Secretary Lansing today, probably about noon. VON RAPEN to GO, Washington. Sept. 13.?That Capt. voh Papon, the military attache of the German embassy, will be sent home immediately, if Secretary ban* sing tells Ambassador Hernstorff hi desires it, was announced at the Ger? man embassy today. Capt. von Papon is desiriuus of joining the German army. The United States will be ask? ed to furnish him a safe conduct. Artillery Duel Continues. Paris. Sept. 13 (Official).?The groat artillery duel continued today, The Gorman Infantry attacked on the Lor rains front last night, but wore, dispersed by the French trench rifles. Numerous gronadf attacks by tin- ene? my near BCthunC and Aria:; highway VOM repulsed. Zeppelin^ Raid England. London, ?opt. 11.?Eeppellni raid cd the Kngli.sh east coast last night, dropping bond's at several places. It was officially reported this afternoon that there wet no Casualties Austrian ship Torpedoed. Koine, Sept. 1 : A French subma? rine torpedoed an Austrian destroyer in the Adriatic today. The latter was seriously damaged. Oaaf GOSS to Front. Petrograd, Bspt. 13, Tin- Csar has gone to tin- from, and the reorganisa? tions aD the cabinet Will await his re? turn, but it is expected that within a week the ministerial slate will lie com? pleted. Ranelaa* Ittacb 'town Without Hue ocas, Berlin, (Wlreles, ? mm? i.i i?. Hept. 13, ?Several Russian hydroplanes nttnek? ed and tried to sink a small German cruiser off Windau this morning, but failed, tme machine was shot down ami the occupants captured, BERNSTORFF GOES TO CAPITAL GERMAN ambassador rf.tfrns to WASHINGTON, Despite Growing Concern Diplomat Feels That Situation Will Work Out Satisfactorily. Washington. Sept. 12.?Count von Hornstorf!', tho Gorman ambassador, returned to Washington today for an initial informal discussion with the American government supplementary to the note from tho Berlin foreign of? fice regarding the sinking of the Arabic, with the hope of paving the way for formal negotiations for ad? justment of the situation growing out of tV* loss of American lives in the tragedy. He expects to see Secretary Lansing tomorrow. The ambassador is optimistic de spite the growing serious concern here caused by the receipt of a disappoint ing note from Germany on the Arabic and the request for the recall of Am? bassador DURlbn, It is held In German circles that the Arabic note is in ac i ? cord with assurances already given the state department and contldence is felt that an agrement can be reached for arbitration of the ques? tion of reparation. High officials were silent again to ? day regarding the entire situation. President Wilson and Secretary Lan? sing are considering the testimony of Arabic survivors that the Arabic was torpedoed without warning, in conr( I nection with tho German explanation that the submarine command thought he was about to be attacked The German memorandum on tb Orduna case reached the state depart (mtnt during the day, but was not do ciphered in time for consideration.' Nothing had been heard ofilciakly from Vienna today regarding Dr. Dumba. So far the administration has taken no step toward acting against Austro Hungarian Consul Gen. Von Nuber at New York and Capt. von Papon, the German military attache, involved in Dr. Dumba's plans. TOBACCO PROFITS RFJ)L'CKD;' South Carolina Crop is I.urge but Prices Have Been Very Low, Columbia, Sept. 13.?Commissioner Watson stated last night that the August report of tobacco sales in the several markets of South Carolina would be issued from the department of agriculture for publication Tuesday morning next. He stated that the report would show on Increase over the sales of August, 191 I, Of over .j.iiOO.OOO pounds, but notwithstanding this in? crease and a total of over 15,000,000 1 pound! marketed, and the fact that nearly ?1,730,000 has boon put in cir | culatlon, tho growers, because of the smaller price per pound, had received over $70,000 less than they did for the August crop of last year. The average price i>er pound last year was 11.01 cents. This year during August tho price does not average quite S cents. TWO NEW BATTLFSUIPS. Plans signed by Daniels for Powerful Fighters. Washington, Sept. 10.?Plans for two new battleships authorized by the last congress were signed today by Secretary Daniels. They will be the 'largest and most powerful ever design? ed for the American navy, and in ad? dition to formidable main batteries of twelve 14-inch guns, will be provided With new safeguards against torpedo attack and anti-aircraft guns. % Hills will be open November 17 for construction of the ships. The ships will displace 32,000 tons. They will have four submerged tor? pedo tubes, secondary batteries of twenty-two fi-inch guns and four 3 inch rilles for repelling air attacks. The length will be ?24 fet over all, breadth 97 feet 8 inches and draft of 30 feet. The eost of each vessel ex elusive of armor and armanent is lim? ited to $7,800,000. GREAT LOAN ASSURED. Anglo-1 Vouch Financial Commission Expect to Obtain Half Milton. New York. Sept. 11. -The Anglo Prencb financial commissioners are today holding Informul conferences with American llnanciers. They are ulready assured <>f ohtnlnina n loan of it ball t<> three-quarters of u billion dollars. They will lie the week-end guests of j, I'. Mori;,mi at bis home on Long Island. No formal conference will bo held until Monday. Tin y Htate they Will deposit "ample MOCUritiCS" for all advances made. Financial in sltutlons throughui'l the Dnlted Kin-lea w ill be .e.ke.i to participate in the loans. GERMAN AND OTHER AUSTRIAN MINISTERS INVOLVED IN DUM HA INCIDENT. Seems Probable Now That Ambassa? dors from Austria and Germany and Other Officials will he Dismiss* cd?Outlook Seems to Indicate That Diplomatic Negotiations Will he Bjeaken Oil?United states Walts for Further Information from Berlin, Before sending Note on Arabic Case. Washington, Sept. 10.?President j Wilson's request for the recall of the ? I Austrian ambassador, I>r. Constantin Theodor Dumba, has broadened into a a situation Involving Capt. Fran/, von Papen, the military attache of the iGerman embassy; Alexander Nuber von Pereked, the Austrian consul general in New York, and possibly Count von Pernstorff, the German? Ambassador. The official view is that the ambassador, although tech? nically involved, is not so seriously concerned as the military attache or the consul general. It is not unlike? ly that both of the latter may he re? called or dismissed from the coun? try. Coupled with Germany's disap? pointing and unsatisfactory explana? tion of the sinking of the White Star liner Arabic, after Count von Bern storff had given assurances that full satisfaction would be given if it were established that a German submarine Isank the ship, official Washington views the friendly relations with the Germanic powers strained more to? wards the breaking point than ever before. Hopes that the submarine crisis had been safely passed and that a break between Germany and tho United States could be avoided were dispelled today by misgivings. Talk . of the possibility of breaking diplo? matic relations was heard again, al? though this time it involved both the Germanic powers, on the theory that Austria, after* having her ambassador virtually dismissed from the country, might stand with her ally in rela? tions with the United States. Unfllocial reports that a second note had been started from the Berlin foreign office for Washington furnish? ed about the only basis of optimism in official Quarters, so far as the submarine controversy was concern? ed. There was no official intimation that another communication was on the way, but the American reply to the Arabic note probably will be de? layed until officials can learn w hether to expect anything additional from Berlin. t may be stated, however, that if nothing comes in the nature of a modification Of Germany's explana? tion, an American note will reach Berlin probably early next week which will set forth the views of the United States in a brie! and unmis? takable manner. Germany's declaration that while she regrets the loss of Americans she recognizes no liability for indemnity even if the submarine commander was mistaken in believing the Arabic was about to attack him and practi? cally offering to arbitrate the princi? ple is regarded in official circles as J leaving the whole submarine Question about where it was left by the Berlin I ? [governments unresponsive attitude towards the Gusitania negotiations, [and in remarkable contravention of the favorable view which state de? partment officials had been led to take by the statement of the German am? bassador. The president spent most of today going over the German note. No otli jclal comment was made at the White House or state department, but dis? appointment was undisguised. ' Capt. von Pa pen is involv ed in the Dumba case because he forwarded by James F. J. Archibald, the American correspondent, traveling under an American passport, a personal letter In which he made offensive state? ments about American officials. .Moreover, Ambassador Dumba's let? ter to the Vienna foreign office, found on Archibald, mentioned von Papen as having approved what the State de? partment in its note to the Austro Hungarian government characterized I as a conspiracy to cripple the legiti? mate Industries of the United states. Consul Generifl Nuber Im drawn int > the case because the Btimbu letter dis? closed that he was connected wph t he si Ike plan. High officials Indicated today that the government would lake steps agalnsl the editor of 11 Hungarian newspaper in this country from whom ii memorandum was inclosed in the Dumba biter outlining carefully prepared peius for putting Into effect the scheme for handicapping muni BANDITS KIDNAP WM. AMERICAN HELD IX MEXICO FOR RANSOM. United States Soldiers Will go Alter Prisoner ii Whereabouts is Ascer? tained. Washington, Sept. 10.?State and war department oliicials were aroused today over the kidnaping of an American citizen by Mexican bandits at Coumbus, X. M. John Lowenbuck, a ranchman, was seized by a band of Mexicans saiu to be soldiers, carried across the border from Columbus and word sent back that he was being held lor a $2,000 ransom. Information of the incident com? municated to the war department was taken up with Secretary Lansing, who sent representations to Gen. Villa de? manding that the ranchman be re? leased. The administration has reports in? dicating that Gen. Villa is losing con? trol of some of his forces in northern Mexico and that many soldiers have formed beligercnt bands. Assistant Secretary Brcckenridge of the war department conferred with Secretary Lansing about the situation. It was stated that no orders had been sent to American commanders on the border. There was, however, an in? timation that United States forces would not hesitate to cross the border to rescue the' American it his where? abouts could be ascertained. CAPT. GONZALES IN CAPITAL. Minister Tells of Cuba's Good Condi? tion Owing to Sugar Crop Revenue. Washington, Sept. 10.?William E. Gonzales, American minister to Cuba, held a conference today with Secre? tary Lansing. Mr. Gonzales discussed department business with Mr. Lan? sing and tonight, accompanied by Mrs. Gonzales, left for Linville, X. C, where they will remain until Oc? tober 15. Mr. Gonzales said Cuba is in an excellent financial condition. This he thinks is attribntanle to the good prices obtained for the sugar crop. The revenue obtained from this year's sugar crop was approximately $05.000,000 in gold above the price reclved lor last years' crop. Before leaving for North Carolina Minister Gonzales called on Paymas? ter General Sam McGowan and Civil Service Commissioner Galloway. QUIET ON BORDER. Gen. Funston Reports That He Has Situation in Hand. Washington, Sept. 11.?Summariz? ing conditions on the Texas border in a telegraphic report to the war de? partment today Gen. Funston stated that he believed all danger of further raids has passed. Two full regiments of cavalry and infantry making up a force of twenty thousand are now distributed from El Tig-e .vrroya to the Gulf of Mexico. Gen. Funston re? ported that the raiders are mostly professional bandits and horse thieves. DRANK WOOD ALCOHOL; DEAD. Two Die and One Seriously Injured as Result of Drinking Poison. Birmingham, Sept. 10.?P. A. Glov? er, a lawyer and wife are dead, and C. X. Boyd is seriously injured as a re? sult of drinking wood alcohol, think? ing it grain, a substitute for whis? key. tions pi \cs. ) Count von Bernstorff is involved technicaly because Archibald carried a letter for him, but as it was a copy of a Statemnt previously made to the ambassador by Secretary Lan? sing, wholy of an innocuous charac? ter, officials do not regard the German ambassador's status in the affair as approaching that of his mil? itary attache or the Austrian consul general. I It is quite probable that until the Vienna foreign ollice replies to the re 'quest for the withdrawal of Dr. Dumba nothing further will be done in this case or in the cases of VOn Papen or Nuber. If the receipt of documentary evidence bears out the information now in the hands of the State depart meid, officials would not be surprised to see both men with? drawn by their home government, or as a final resort, dismissed from the country. The fact that von Papen's letter was a personal one would not alter the situation. Secretary Lansing said that the state department regarded the use of American passports for carrying any sort of communication through the lines of the belligerents as an abuse of the document. DOMINATE MONEY MARKET. I FDKRAL RESERVE BOARD TAKES LONG STEP. Issues Revised Regulations to Permit Renewal of Bankers' Acceptances? l ulled States Bunks to Finance ln U_I national Trude. Washington, Sept If.?The time has come, in the opinion of the fed? eral reserve board, when the Ameri !can dollar should take a dominating place in the financial markets of the world, and when American or dollar exchange should become the medium through w hich the millions of exports and iivorts of the United States are paid. /pen the field for American excha S jfle board today issued re? vised p iations governing the redis COUn ?j rankers' acceptances by fed? eral .. **ve banks, providing among m oth J ings Chat under certain condi? tio ?ch acceptances may be re ne T In explanation of the new reg u ,'s, the board tonight issued a S 5 lent which said: "* has been the aim of the board I everything in its power to create tlhe American acceptance, that la dollar exchange, a dominating position in the world market. Present condi? tions offer in this respect a great op? portunity. In widening somewhat the facilities of federal reserve banks in dealing with American bankers' ac? ceptances the board is attempting to give the members banks a larger op? portunity for developing their sphere of usefulness in this respect. "The United States should now do what Europe has done for many gen? erations for the United States, that is to say, the bank facilities of the Unit? ed States should be used for the car? rying of import and export transac? tions for foreign countries just as much as Europe up to now carried by lits acceptances the import and export transactions of the United States. In order to do this with the exchange market disorganized it was thought that it would facilitate foreign trans? fers if liberal conditions should be al? lowed for Ahe renewal of such drafts so as to enaere tneee ? TW/ei^wwooasr^v tries to have ample time to procure ' the necessary cover against the ac? ceptances drawn by them." Members of the board said there is no connection between revision of the acceptance regulations and the visit of the Anglo-French commission to the United States to take up ex? change problems with American bankers. It was pointed out today, however, that the new acceptance regulations might facilitate the credit loan sought by the Anglo-French commis? sion. The board has liberalized con? ditions so that foreign and American bankers may use a part of the re? sources of the federal reserve system in taking care of purchases made here for exportation. On the last day the condition of the 1.12 reserve banks was published, they had combined resources in gold in their vaults of about $209,000,000. If American bankers decided to extend credit by indorsing or accepting drafts on Europe they probably could rely on rediscounting these drafts with federal reserve banks to the \alue of many millions. \ No regulation has been made by jthe board fixing a maximum sum or percentage up to which reserve banks 'may .invest in this kind of paper, and. the only declaration of policy in this respect has been that the banks could consider not only local de? mands, but also requirements in oth? er districts and that they should j "watch carefully the aggregate amount" of acceptance held from time to time." If American bankers decide to ex? tend credit In this way the $209,000, 000 resources of the reserve banks could be more than doubled in work? ing value If the banks or firms which rediscount the acceptances elected to take federal reserve notes instead of book credits. The reserve act re i quires only a 40 per cent, gold re serve against federal reserve notes is? sued so that In reality federal re 'serve notes amounting to more than 1 $50(1,000,000 could be issued against existing federal reserve bank gold re? sources of more than $11.1,000,000. PRIZE FIGHT TONIGHT. ' i _ Mel urlaud and Gibbons Both in Per? fect Condition. New York. Sept. 11.?Packe:. Mc Farland and Mike Gibbons are both In periVet lighting condition for the light tonight to decide who is the better middleweight boxer. It is predicted thai it the weather Is clear thirty thousand or more spectators will see the light. The betting today is the to four with Gibbons the favorite.