THE EUROPEAN WAR.

Taranaki Daily News, Volume LVII, Issue 64, 4 August 1914, Page 2

THE EUROPEAN WAR.

iIOVV NEW ZKALAND WOULD BE AWJSC'TIiD. l!v Telegraph.—Press Association. Auckland, August 1. ''How will it affect New Zealand financially, if there is a general European war?" This question was put to a leading Auckland banker this morning, and it drew an interesting answer. "What the Hon. W. Fraser said in*tw House of Representatives last evening was perfectly correct," the banker declared. "It would be impossible to negotiate Government or local body loans on the English market. Prices would be so outrageously 'high that no oversea loans would be" even thought of. The rate of interest would make-it simply I impossible to borrow. No young country would be able, to afford it." ] "Supposing Britain was drawn into ) it, what would happen?'"' ■ "Every moneylender would button up his pocket. There would 'be a general collapse of the investment market. The whole community would be affected. New Zealand's internal finance would be more or less capsized. Bank rates and the price of money would have to go up. This is all, of course, on the assumption that a European war will of necessity follow Austria's declaration of 'hostilities against Servia. The world's great financiers might yet succeed in playing their part, or the better counsels of Britain and other nations may prevail, so that there is no need for a financial scare. Investors are naturally bound to be somewhat timid, but New Zealand is, generally speaking, in a very sound position financially. Money , is somewhat tight just now, but the country is really in a very wholesome state from a financial point of view, and while the outlook is serious, there is no need for alarm." i RECENT CRISIS RECALLED. I The recent enthusiasm with which the i declaration of war has been received in the Hungarian 'Parliament is the more significant, inasmuch as just over two years ago the second member of the Dual Monarchy came into sharp conflict with the crown over the Army Reform Bill and the question of franchise reform. The situation became so critical that in MaTch, 1012, tilie aged Emperor, in an interview with the then Hungarian Premier, threatened to abdicate his throne were the differences not removed. The crisis continued, however, and at the beginning of tihe following month, a particularly stormy scene was enacted in the Hungarian Parliament, members attacking the person of the Monarch in the most violent terms. The deadlock over the army Bill gradually ended, and the Administration underwent a change, the present Premier, Count Tisza,. coming into office. An even more critical situation tlien arose over Uhe franchise issue. So high did feeling run that on June 5 the Premier called in the aid of the police, and several members of the Opposition were ex- ; pelled, not only from the Chamber, but I from the Houses of Parliament, and J thrust into the street. Upon the resumpJ tion of the sitting, Coimt Apponyi, who j is mentioned In recent cable messages r as haying promised the support of the ) Opposition headed another section of the members who left the Chamber in protest.

An English writer, who was tih.cn in Vicuna, remarked that the most significant feature of the. situation was the cry launched by a Hungarian Socialist organ, that as the Army Bill had been forced upon the people, irecruits were under no obligation to obey' summons to the colors issued on the "strength of TREND OF RUSSIAN FEELING. COUNTING COST OF STRUGGLE. | The critical condition of European affairs at the close of the last Balkan war led to a remarkable article by Russia's most influential publicist, M. Mensehikoff, on the Franco-Russian Entente. The author warmly advocated such a modification of the treaty' as would dispense Russia from risking* war with France when only colonial possessions were threatened. Discussing the Near East, the publicist declared that the partition of Turkey was at hand, and it behoved Russia to allow it to come. "Austria-Hunga'rv having incorporated Bosnia and Herzegovina with impunity, feels sorely ■tempted to "teeize other Balkan lands which Russia is protecting. The question may confront us very soon, pernaps_ in tlie next few weeks, whether Kussia should declare war on Austria ir what Power occupies Novi Bazar while ■ Rouinania seizes' Scrvia. An ultimatum naving duly been presented by us, the treaty of the Triple Alliance enters into torce, namely, the obligation for Germany to co-operate with Austria. Germany would have to attack Russia, ' whereupon France would be obliged to fall foul of Germany. Then would begin a sanguinary game of leap-frog, the formal cause of Which was an obscure Servian district, which would, it is alleged, prosper better under Turkish than under Austrian sway. I strongly doubt whether in this case public opinion in 1< ranee and England would be or. our side, and whether the Governments moW » would uphold out w A <- • lc ' u ' Me " r S«tt Russia to Jllow Austria to clear her way to the Aegean Sea and Germany to the North left' ** "***'* possrasio,ls