The Daily News. TUESDAY, AUGUST 4, 1914. THE EUROPEAN UPHEAVAL.

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

The Daily News. TUESDAY, AUGUST 4, 1914. THE EUROPEAN UPHEAVAL.

Events are moving rapidly in Europe. Germany. without formal notice of hostilities, has invaded France, where a small engagement is reported to have taken place. Tims France is brought into the arena at once. This, of course, was inevitable, and Germany, knowing it, has got in the first blow, and, what is more, occupied Luxemburg, a neutral State. Evidently Germany is not goii>-.: t« allow ''or o'v ration" to be re-

st,: till iiy li irll.t: as tie t>'>.-srrv- ' ance of the laws of neutrality. As the London Times points out in a cable printed this morning, it may be Belgium's or Holland's turn to-morrow. It is but the traditional German policy. To her all things are lawful, when those things promote her designs and advancement. These incidents are opening the eyes of the world to tli9 real nature and intentions of Germany. For one thing, they have materially changed tftie attitude of membera.of the British Cabinet. "Doubt," we are told, "which had manifested themselves at the earlier meeting were very largely dispelled," and the Cabinet has turned with. a united front to fulfil the duties imposed by the national peril. It is added that at an ( , earlier stage a strong belief existed that ! various Ministers might rtsign, but yesterday's meeting succeeded in closing the ranks. The decisions of the Cabinet have not been announced at tlhe time of writing, but the cable says they are known to be of "a large and comprehensive character, dealing not only with naval and military preparations, but with the whole fabric of national credit and food supply." How Britain, can escape participation in the trouble is difficult to sec. She cannot allow her friends to be bullied first, pounced upon and then crushed. What is France's turn to-day may, a3 the Times truly says, be our lot to-morrow, and, if we are to strike, the sooner we do so the better. Britain was never so powerful or so prepared at sea as she is to-day. She has an overwhelming advantage over the German navy, and need not concern herself about obtaining assistance from her allies, except for blockading purposes. When the fleet left 'Portland the 5 other day, under sealed orders, so hurriedly that the women folk had no time t<s change their evening dresses, every man knew what was Ijefore him —grim 'business. Britain was aware then, though still fighting hard for peace, that participation in the coming war was inevitable, and the latest actions of the Germans have, if ive mistake not, removed any doubt that may have been entertained on that score. A few hours more and we may hear that Britain has decided to tlhrow in her lot with her friends anil exert her full strength on behalf of their cause. It, is a dreadful possibility, but there are worse things even than war. Germany, at doubt, has counted upon Britain's hostility. It is rather significant tihat German trading vessels in Australasian and other British ports are fleeing at present to neutral ports. It is also significant that Britain has accepted Canada's offer of 30,000 men. These acts point to the imminence of Britain taking a hand in the dreadful tragedy about to be enacted. Italy fortunately is keeping out of the strife. Her defection will mean a great blow to the Triple Alliance. Italy has always entertained the. warmest friendship for England and declared more than once that she would never engage m war against her. Besides, her real enemy is Austria, whose Adriatic provinces, entirely peopled by Italians, are a constant menace to her security. That is one substantial gain. .Japan lias male clear her intentions. She is ready, she says, to do what devolves upon her in virtue of the Treaty, and do her duty by Britain. The latter has been assailed for attaching herself to an Asiatic Power, but the wisdom of her action has since been strikingly exemplified, and in nothing will it be more than when Britain is engaging in what would prove a life and death struggle. Whatever the result, India will be safe, for Japan is pledged to protect Britain's interests there and elsewhere in the I'.ast. Australia has followed our and Canada's action and offered the Motherland 20,01)0 troops, and everywhere throughout the Empire political differences are being sunk, the ranks are being closed, and a determination evinced to assist the Motherland to the fullest extent of their powers. It is a line spirit and will not be without effect upon the Motherland in her hour of need and trial.

ious dislocation oftrade with the Motliar Country, and although war risks will have to the paid on cargoes, the actual losses by capture should not be very serious, and the increased prices should more than compensate for them. But tha outlook as far as arranging for renewals or maturing loans, at taining further advances is less satisfactory. We may as well make up our minds to it right away, that if Britain is enrolled in the war, the London money market will be closed to us as far as fresh loans are concerned. It •will, no doubt, be possible to arrange for enewals of maturing loans, at a higher rate. But that is merely one of the penalties we shall have to pay for our dependence on the lender at such a critical time. The effect of it all will be that the spending power of a great any people is going to be "sharply curtailed, particularly those wage-earn-ers employed on development works that will have to be suspended for want of money to ca-rry them on. There is no need, however, for anyone to get into a panic. There is a gxiod deal of monev tin; country, and if peopcl husband their resources and exercise ordinary prudence and economy, New Zealand should not cornc to much harm.