PROGRESS OF THE WAR

Dominion, Volume 8, Issue 2314, 23 November 1914, Page 4

PROGRESS OF THE WAR

A cheering item from the front to-day is tho news that it has been possible to grant_ holiday leave to many of tho British officers and men who have been through the desperate fighting in Belgium'and France. The Times correspondent states that the Allies'' position . was never more secure than it is at the present time, and this seems to_ be supported by the messages relating to such fighting as has occurred. An official message from Paris reports very bad weather and snow, and no doubt both sides are busy preparing for their winter quarters. .This does not mean that the Allies are missing any opportunity which may present itself to gain an advantage. Little if any progresses recorded in the North, thefighting being confined mainly to artillery duels, but •on the SouthEastern frontier of Franco, in the Argonnes and the Vosges, ground has been gained and the Germans forced to fall back. There is a made-in-Germany story of a calamity to British troops, who, it is alleged, lost 15,000 drowned in the vicinity of Dixmudo in North-West Belgium. In the absence of any_ official confirmation or 'any mention whatever of: any happening of the kind, we can safely regard this as an invention of tho enemy.

Russia is busily '■ occupied over a great stretch of country. In the North her troops make slow progress in East Prussia. Along the Centre she is driving back the German invaders from Russian Poland, while in the South her victorious advance in Galicia. continues. The fighting appears to bo most severe at - tho moment in South-West Poland. The main Russian advance on Germany was moving in the direction of Silesia, tho purpose apparently being to enter by way of Galicia and South-West Poland. _ To check this the Germans, after being driven back from Warsaw and along the banks of the Vistula, rallied and, reinforced struck at the Centre and northern end of the Russian lines in Poland. A check to the Russian advance at these points was thus caused: but in the South-West of Poland,/ where the' main forces are operating, the Tbar's troops appear to have scored a gTeat victory which is likely to have tar-reaching effects. In Galicia, too, there have been further successes, and the situation generally appears to be quite satisfactory. # ,# # # ,

Italian reports indicate- a state of serious unrest in the Balkans, with every possibility of an early outbreak. We are loft in doubt as to tho. exact cause of the trouble, but apparently Bulgaria is growing alarmed at the Austrian, invasion of Scrvia. If Servians crushed by Austria, then Bulgaria is within reach of a powerful and aggressive neighbour which has been steadily bent on extending her possessions. Bulgarian sympathy ib said to be with the Entente, and if self-interest is to be the deciding factor then the Entente certainly has more to offer her than the Austro-German Alliance. Turkey having i entered tho fray on the side of Germany Bulgaria might reasonably look to securing a further slice of tho Turkish territory should she join with Russia, France, and England. Greece is being financed by England no doubt in order to enable her to act against Turkey at tho proper time; and there is another hint that Italy may be found ere long fighting on the side of tho Entente with a view to regaining her lost territory from Austria, i There is not very much that is definite to seize on to, but signs are fairly plentiful that in the event of the war being further extended it will be in favour of the Entente. Possibly it may be found that Italy, Bulgaria, and Greece will take advantage of the slackening of hostilities which is .certain to come with the-winter months to preparpjthemselves to enter the conflict in the spring. > Italy particularly wants time.' * * * » There is little to record from the sea. The story of the Russian fleet's encounter with the Goeben seems to find confirmation in the details which are now filtering through, but the fate of tho German battle-cruiser remains uncertain. American papers are stated to have published particulars of the gathering of English, Japanese, and Australian war "Vessels off tho coast of Lower California with a view to giving battle to the German squadron recently in that'vicinity. The German vessels, however, appear to be well served both in the matter of news and supplies, and are very elusive. * * * * Finance must, necessarily bo a strong factor in determining tho duration of the European War, and it is therefore pleasing to reflect that British ■ credit is unassailable. This is demonstrated by the reception accorded to tho war loan ' of.

£350,000,000. _ The amount is perhaps the largest single issue ever made in Great Britain, and yet its success is assured. Tho sum of £100,000,000 has been provided by the banking houses, so that £250,000,000 is to be found by tho public. Tho loan is for a comparatively short period, as it matures in 1928; the issue price is 05, that is to say, taking a £100 debenture unit, tho minimum amount tho ' Government, will accept for a debenture is £95, but on maturity in 1928 the holder will receive £100. The interest is 3i per cent., but taking the' discount of £5, tho return to tho investor is equal to" 4 per cent, per annum. Tho Bank of England has undertaken to lend on the war loan scrip up to tho limit of tho issue price, that is £95, without requiring any additional security, and the rato to bo charged by the bank is' 1 per cent, below the official minimum discount rato of tho bank. The bank rato to-day is 5 per cent., so that if the bank were lending against tho war loan scrip, the. interest would bo 4 per cent. Tho issuo prico means a difference of .£17,500,000 on tho whole amount. Tho Imperial Government will if the loan is taken up at the issuo prico Teceive £332,500,000, and on tho maturity of tho loan in 1928 will' have to pay; back £350,00.0,000. . But it is obvious that the "Government will receive something over £95 per cent., for it is already stated that the issue, is at a premium of 2s. Od. The applications for tbo loan close on Tuesday, November 24, and as the issuo stands at a premium now it is an indication that it will be over-subscribed. The additional 2s. 6d. above the issue priceof 95, which is said to be the premium, means that the Government is already assured of £300,000 more than the minimum amount it expected. * # # *

Contrast tbo position of Britain with that of Germany,. The Gorman Government • offered a smaller loan, about £225,000,000, early in September, and was obliged to impound a portion of the deposits in the Savings Banks and to 'confiscate tho debts of German merchants to foreign firms both ; ncutral and enemy. The big German banks were also compelled to subscribe to the issue, and the small savings of the servant girls were'also tapped by special appeals to patriotism. Another strong feature of_ British finance' is the fact that Britain's credit is being pledged for the benefit of the self-governing States of the Empire, while tho weaker members in the group of Allies are being helped. Belgium has had nearly £13,000,000 from Britain free of interest, Servia haß been given about £800,000 also free of interest, and Greece has.had a loan of about £2,000,000. • The financial strength of England, France, and Russia will enable them to maintain the war for a long time, while Germany and Austria must suffer from economic exhaustion.