1915-07-24 — Page 6

INTIMATIONS

THE HONGKONG WEEKLY PRESS ǝ

TORIMAVERA PRADE REPORT

a now ready and contains

Far Eastern Nets.

Hongkong.

Who Goes Home?

Leading Articles:--

The German!! Chops

Bandom Redections.

Hongkong Aeroplanes.

Losal Sport

Vatoris Becreatiou Club.

Hongkong Jockey Club.

Hongkong and the War.

Japan Coronation Naval Maumures.

Mono Notes.

Peking Notes.

The Law Courts.

Fook Murder Mystery.

Company Meetings

China Mutual Life Insurance Co.

Hongkong Tramway Co.

Anglo-German Browery Co.

Company-Reports: -...

Indo-China Steam Navigation Co., Ltd.

Shanghai Dock and Engineering Co.,

Ltd.

Shanghai Land Investment Co.

The China Association.

Baz Yat-sen and Chen Chuen-wing.

Shipping Notes,

Prince of Wales' Fund...

Bolglen Relief Fund.

Major-General Kelly's Departure.

The West River Diaster.

Kwangtung Flood Relief Fund.

Despicable Attempt on Life of Lung Chai-

Carroce

The Kwangtung Flood.

The Police Reserve.

The China Association.

Abolition of Advisorships.

A Swedish Police Force for China.

Revival of the Old Esamination System.

Dr. Goodnow on the Chinese Constitution:

Gambling Evil Among Chinese Officials.

The Civil Administration of Kwangtung. Telegrams.

Death Penalty for Filial Disrespect. Commercial.

Extra Copies 30 cents each, Cash.

Copies can be posted from this Office

to addresses sent; including postage 84

.vents coch.

81 Canh for three coples.

Bubscription: $10 per annum, payable

in advance; postago extra.

Hongkong, 24th July, 1015.

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THE GERMAN POINT OF VIEW.

WHY THE ENEMY SHOWS CONFIDENCE.

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NAPIER JOHNSTONE'S

Bursing withdrawal in Galicia in a seri one cheek, but it has happened once be fore, ard it means no permanent impair mont of the fighting resources of our Ally. The fall of Przemysl meant a substantial reduction of the combatant forces of Aus- tria, but Bussts can face her losses with The German nation is believed to comparative calmness, Both France and more cheerful and more confident of site Great Britain have enormous reserves of Dess to-day than at any period sing the men who have never yet been near the war began. It is imperative that firing line, but await the chosen moment. It must also be remembered, and the should understand German confidence, and the reasons upon which it is based point is of primary importance, that the fortunes of the wor in the West rest chief- In the last nine or ten montha Germany

In spite of all bas passed through many violent fluctualy upon General Joffre, tions of emotion, Sho began the war with the heavy fighting of the last few weeks,

the fact remains that it is of a prelimina doubt and fury in her heart, because the sudden appearance of Great Britain as ery character, and that. General Joffre Again, the economic a combatant upset her calculations. The has not yet struck. failure to reach Parabad a farther chae condition of Germany inquestionably was ultimately has a darker side which the enemy affect tening effect, which

to ignore. There may be abundance of deepened by the failure to reach Calais.

food, but there is evidently growing Throughout the winter the Germans ra mained absolutely resolute, but not elated, anxiety about cotton, copper, and ather They even had their moments of gloom --commodition Expected developments They aro should intensify that anxiety before many recently as a few weeks ago.

The correct condusion now on the crest of a wave of renewed-on-weeks are over, thusiasm, and the whole nation not only to draw about the confidence of Germany is that it will probably never be much believes that it will win, but feels so eure of the result that to the German mind it higher than it is now. It can be broken, and though the task may be a long one," does not even seem to require discussion.

the Allies vill assuredly abatter it. What has produced this accession of con- fidence, of which we see many signs? Unquestionably the defeat of the Russians

THE WAR.

ሰባ

the

the

in Galicia is a prominent cause, says The THE ECONOMIC FACTOR IN Time in a leading article. The Germans were told long ago that in due course the

The

importance attached Russians would be pinned and held, and that they would then be free to pour their economic factor as a deciding influence in strength against the Allies in the West. the World War, during the early days of hostilities, RES perhaps exaggerated. They think the Galician victory is a fulThe isolation of the Central European filment of this promise, and they expect it to have important consequences on both Powers was only partially effective. BS fronts. They are further very much long ng supplies could be drawn from and heartened by what they consider to be through Italy, while the freedom with which the Allies could exchange and the invulnerability of their line in France obtain munitions and commodities was

the closing of and Flanders. They know that for many minimised by months past it has only undergone small Dardanelles and the development of sub. variations, and meanwhile its defensive marine attacks upon merchant shipping. works have been enormously strengthen The position of our enemies has been, ed. They refuse to believe either that it however, gradually weakening. Essential can be pierced, or that any huge attempt raw materials are growing scarcer, and will be made to pierce it, and they pro- the value of German currency is steadily Meanwhile, fess to derivo confirmation of this convic falling in foreign markets, tion from the failure of certain recent for the Allies supplies of necessities, of attacks. They have been long in posses warfare have been freely available, and, sion of almost the whole of Belgium, and while the exchange value of the German of a great though varying alloe of Poland mark has declined 15 per cent, that of while their own territory remains almost the English sovereign has been practically. entirely free from invasion. They have maintained. There has been no organised now immense accumulations of ammuni-economy on our part, whereas this has tom, and feel reassured about their food been persistently practised in Germany supplies. As to men, they are at the top and to a lesser degree in Austria. of their strength. When they look around, prices of commodities have risen to fur they feel themselves irresistible, and their fees gerious extent in this country than estimate of their own position intensifies in Berlin or Vienna. their arrogance. Their doubts are for the present dissolved, and they hold that victory cannot fail to be theirs

& FORMIDABLE FOE

Yot

It is not, however, in articles of cou sumption that the pressure is most serious from a military aspect. The mass of the German people are compelled to hoard thoir

the resources with

greatest So long as Germany remaina in this frugality, but are nowhers near the point mood, and feels she has ample justifica of starvation. Actual distress is kept at arm's length by State, municipal and tion for it, she continues to be an or

before the process of tis

A which, however, cannot be displayed must happen disillusion begins. We must even be pre in the expenditure of war munitiona pared meanwhile for further German sucwithout sacrifice of efficiency in Ger- cosges, because if she does not, win then mung's strongest arm, los artillery. An and interesting article now she may never attain them. The important people of this country cannot understand appearing in this week's Nature son- too clearly both the character of German aludes that all accanits allowed to leak confidence and the solid foundations upon through from Germany and Austria which, to Germans, it seems to be based. clearly indicate that stringency in the There must be an end, meanwhile, of the supplies of certain raw materials abso- They lutoly esential to the manufacture of stories of German despondency.

munitions of war is now becoming acute, may have been accurate enough in the

and, with the advent of Italy as another winter, but they have little warranty to

of our Allies, it will rapidly become day.

Germany has The Germans feel that they have almost insurmountable. taken breath and recovered strength, that summoned to her assistance all the metal- none of their gains have been wrested furgical skill and chemical knowledge at from them, and that they have only to her disposal to improviso substitutes for strike hard, and to go on striking, in materials of which she has been deprived order to win. They regard Groat Bri- by our blockade. She will to some extent tain as their most dangerous enemy, but succced, but such attempts are clear they are conscious of being free from the evidence of the straits to which she is chief difficulties which beset us. The reduced, and, while possibly prolonging fundamental difference between Great the struggle, will not materially affect the Britain and Germany at this juncture, a ultimate result. difference which gives our foo an enor mous advantage, is that Germany is fully organized for war, and we are not, she has always been organize for war. Whatever wo may think of the military basis of her whole administration, she is reaping the benefit of it now. Not only on she make war efficiently, but she does it economic ally.

The Neutral Correspondent" who hos bees lately contributing an interesting! series of articles to The Times on "Gor many To-day" has been dealing this week with the remarkable system of paper credit by which German economic life is being maintained. The Imperial Bank has garnered all the gold to be found, but

Her interior financial position is the only real basis of the whole busi not quite the handicap we think it is, bensa, as this correspondent shows, is arms. "To the superficial observer money cause while we are squandering our reconfidence in the success of German serve of financial strength by spending seems plentiful in Germany, as enormous with amazing extravagance she is wag- masses of notes are in circulation, bat ing war dheaply. If Germany spent no gold is to be seen. Since 23rd July, money at the rate we are doing for an 1914, the gold holding" of the Imperial equivalent result she could not go on for Bank of Germany has been nearly doubled another six months. She believes that by practically exhausting the internal in the long run her thrifty outlay will gold circulation, but its own note isme equalize any advantage we may derive has montime increased nearly 300 per from our superior wealth, Her greatest cent., despite the "Imperial Lean Fund" asset is the extraordinary unity and deformed to relieve the Imperial Bank, termination of her people No German which, from its 160 branches, lends paper manufacturer of war munitions ever hay money on marketable securities and on all to say that his workmen do not under non-perishable goods. All kinds of socuri- stend the war and its objec's and there ties, even shares not accepted by the fore sometimes do less than their best. Imperial Bank as collateral Every Germpo understands" the war. accepted by the Loan Fund, now entitled The nation has been fed on thoughts to land £180,000,000 Securities ere accepted up to 5 per cent of the last pre- war for years

war market quotation. The paper which is thus issued circulates freely as money. The Empire is responsible, and this has been regarded as entitling the Imperial

DITEENINED ALLIES.

Our object in examining the German point of view is to demonstrate that only

it.

Cover, 11 STƏ

a series of very crushing blowa can shake Bank to regard them as "gold" cover The really crushing blow received for its notes. The Imperial Bank can so far by Germany was her failure to issue three times as many notes as the reach Paris, and its effect lasted amount of the Imperial Loan Fund notes for months. If wo thought the held. Another class of war credit bank confidence of Germany we justified now existing in most of the Federal then the outlook. would be black States, provides personal credit, grant- indeed, but we do not take that ing loans to individuate upon notes of view in the least. Every careful observerband endorsed by two or more other per who seeks for broad conclusions and is sons. There are also large numbers of war credit banks in which municipalities not led astray by isclubed stories, has. foreseen that Germany would probably are interested, formed to support the begin the spring campaign with fresh middle classes and the smaller trades.

In short, the country is covered with a ardour and increased confidence, Her. conviction of success may even be par network of institutions organised on a tially maintained until her provinces are large scale to meet the goods of the It is, in effect, mortgaging invaded. The Allies are in their turn population.

ite whole future upon sweeping victory As soon as it is! confident, because they judge the situa- tion, not by its present outward appear upon the battle field. ance, but factors which they know evident to the German people that this Germany is cannot be fully realised financial catss- mus, tell as time passes.

economic factor has not been much in hghting now with every ounce of ength trophe is inevitable. The influence of the she possesses, but the Allies have large vidence in the first stages of the war, reserves of strength. They can only but its an ally which will render the oring their reserves of 'trength into concluding stages far more rapid tha operation by degrees, because they were would appear possible to those who base less prepared at the outset, but their their views upon the naval and military The movements. (G. J. H. in Money Market fighting weight steadily increases.

Review.)

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