1919-08-16 — Page 12

EARLIER.

ĒLEGRAMS

THE AIR FORCE.

·

Loudon, Aug 19.

THE HONGKONG 1

In the House of Commons General Sealy, rebutting the kharges of extravagance in the Air Service, stated that at -ško: armistice, arrangements were made to produce 30,000 aeroplanes, annually. Since November 11, 20,000 officers. out of 30,000 and 903,000 out 284,000 other ranks, had been demobilised while 210 aerodromes out of 388, had been given mp and 1,927 hired premises out of 9,143 had been surrendered. Be contended that the Air Force was worth maintaining. many millions sterling and thousands It would save of precious lives.

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The Lard Advocate dealt with recent allegations of keregulafities and defended his decision against the pro- secutions. He declared that whereas the Public Accounts Committee Report made it appear that £50,000 or £00,000 was involved, the actual amount concerning which he was Approached was £use He condemned the lack of administra tire supervision as regards the contract referred to in eable of August 9th, and said the confusion of accounts would have prejudiced the Government's case in any pro- secution.

the the

The House received the statement very favourably. Mr Churchill drow attention to the fact that Office ordered inquiries into Treasury and War zerodromes.contracts, immediately the situation was ap parent. As regards the general question of finance Mr. Churchill said we had arranged that our forces on the Rhine by October 31st, would be reduced to one strong brigade and the Air Forge to one squadron., There were still over 500,000 housand German and Turkish war prisoners, needing 100,000 soldiers to guard them. Permission had now been granted to repatriate the Turks, bet although repeatedly ough the Supreme Council had not yet authorised the War Office to repatriate the Germans. The maintenance of 100,000 troops, of which 90,000 were British, in Mesopotamia, was the principal mainspring of the profligate expenditure. The efforts to reduce the forces had been resisted by officers on the spot. However, the War Office was inquiring if Mesopotamia could not be successfully policed by a judicious.. strangement of armoured cars, acroplanes and very fast tanke By similar methods is was hoped to reduce the present force of 90,000 troops in Egypt and Palestine by half. There were 60,000 troops in Ireland; compared with 30,000 before the war, but the Irish Executive was very strongly opposed to any reduction at present. Moreover, until the troops in India could be sent me we were forced to maintain a duplicate India garrison. We had to maintain 100,000 men in France on salvage work, or leave valuable assets rotting on the ground, or raise a temporary civilian force. We also had many thousands of seriously wounded in hospital. Hence it was clear that it was not yet possible to contre! expenditure by policy. The only means of redacing ex- penditure was to bring hyde men at the earliest opportunity and re-establish then in private industries. He was con- centrating thereupon, Mr. Church re-emphasised that the most urgent problem was to reduce the cost of the national Government even if it-involved the abandonment of many cherished schames. He estimated the cost of reproducing the pre-war army at between £60,000,000 and £75,000,000 annually. He had instructed General Trenchard that he mast provisionally frame a scheme within the limits £25,000,000 annually.

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An interesting passage in Mr. Churchill's speech was:" Next year there will be only two nations in the world fres from conscription, Britain and Germany, of which only one will ♬ völmtarily free. France, Italy, Russia (both Bolshevist and anti-Bolshevist), Japan, United States, to say nothing of small Powers, are all proposing to continue compulsory service, and the United States proposes legisla tion embarking on that system for the first time as regards its peacetime policy."

YORKSHIRE MINERS' STRIKE ÉNDS.

London, Aug. 12.

The Yorkshire Miners' Councit has recommended that the mon return to work.. It is understool this virtually ends the strike.

The Conference of the Triple Alliance passed a resolu tion that in view of the changed conditions as well as the changed attitude of the Government towards the proposals of the Triple Alliance policy, direct action should be post poned.

London, Aug. 13. Labour correspondents agree that the decision of the Triple Alliance is due to the unqualified opposition of prominent Trade Unionists inside and outside the Alliance. There is growing evidence of opposition to direct action ic the mining districts, pointing to the danger of a disastrous split wrecking the Alliance, if the campaign is endorsed by the conference of delegates to which it was referred. The Yorkshire Miners' Council's admission of defeat is attributed to & revulsion, of the strikers in favour of resumption after the expenditure of £300,000 strike pay, causing the Union Funds to ran low, and high prices causing bardship.

ITALY AND FRANCE.

Paris, Aug. 12, A commission appointed to inquire into Franco-Italian incidents at Fiume has sent its report to the Peace Coa- ferencs. Its finding is favorable to France although Italian susceptibility is not wounded. The commission, presided over by a British General, held 25 sittings and examined 200 witnesses-Havas

THE PRINCE IN CANADA.

St John's (Newfoundland), Aug. 12. The Prince of Wales landed at nine this morning and was accorded & most enthusiastic reception along the two wile route. The city streets were decorated with triumphal archer The Mayor, also the Chamber of Commerce, pre- pented addresses of welcome. The Prince luncheoned at Government House, where members of the Government and mamy officials were present.

THE

SHIP ENDS.

EARLIER TELEGRAMS.

AMBASSADOR TO AMERICA

Landon, Ang

The impression in the Lobby last evening was that Viscount Grey had accepted the Ambassadorship Washington.

London, Aug. 13.

In the House of Commons at questiontime Mr. Bonar Law stated this pending the appointment of a permanent Ambassador, which would be maile early next year, Lord Grey of Falloden had consented (cheers) to go on a mission to Washington to deal expressly with questions arising out of Peace. He was sure the House would, share in the warn appreciation felt by the Government of Lord Grey's patriotic action, which the Government thought would be of the highest value in its influence on the relations between the iwo Governments and peoples. (Cheers) Replying to Com- mander Kontoriby, he stated the Government would only be too glad if Lord Grey would accept the past permanently, but everyone who knew Lord Chrey's disabilities would share in the satisfaction at his present action,

HUNGARY.

Berli, Aug. 1a From Visada it is stated that the Government is advised from Paris that it is responsible for the person of Belakun, who will be called to account for the crimes committed during the Soviet regime.

Paris, Aug. 12 Dispatches received in Paris state that Archduke Joseph has been nominated Adminstrator of Hungary until the National Assembly elections.

A despatch from Bucarest describes the enthusiasm of the polulation. When the King entered the City a de monstration was made in front of the French Legation, the Marseillaise being sung, and also before the Royal Falace.- *HITES.

Paris, Aug, 13. The American relief workers have begun feeding 90,000 children in Budapest. This does not involve relaxation of the food blockade of Hungary.

THE AUSTRIAN TREATY.

Paris, Aug 19

"It is understood that the Peace Conference will consent to important modifications of the Treaty in favour of Austria, notably as regards financial and reparations claims and the allocation of the eld Austrian debt,

THE AUSTRIAN REPUBLIC.

Paris, Aug. 13.

The Supreme Council decided to recognise New Austria

as the Austrian Republic, not German Austria.

THE RUSSIAN FIGHTING.

Rome, Aug. 13.

The Italian commission and expeditionary force lei: Murmans's ca Aug. 9th for Italy.

+

THE BAVARIAN CONSTITUTION.

Copenhagen, Aug. 13

It is reported from Hamburg that the Bavarian Diet, by 165 to 3, adopted the new Constitution of the Free State of Bavaria. A proposal to abolish the titles of the nobility was rejected.

ARMENIA

London, Aug. 13

The "Times" in an editorial drawing attention to the deplorable condition of Armenia, threatened by enemies on all sides, urges the Government to reconsider the decision to withdraw the British occupying troops, in the interests of Humanity.

DEAR FOOD CAMPAIGN.

Paris. Aug. 19,

In Paris the campaign being waged against the high coat of living is in full swing, extending now even to the aristocratic arrondissements of Chaillot and Fassy-Hayas.

PARIS GARRISON.

Paris, Aug. 12

Paris welcomed the troops of her garrison. A review was held before the troops officially regained the barracks.-- Haves.

BELGIAN OCCUPATION TROOPS.

Brussels, Ang. 13, Belgian troops have occupied Malmedy and wer rith enthusisan.

HOME CRICKET,

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COMMERCIAL

KORKAN HICE FOR JAPAN.

The importation of Korean ride continues. The Seoul LETUSS reports that 10,000 bales, of Korean rice, destined for Japan are awaiting shipment.at Kinsani 15,000 bales have also accumulated at Fujan to be went. to Japan. It is expected that an N.T.K. steamer, will shortly: arrive in Chosen to convey them home. The Oriental Development Company will also ship to Tokyo 10,000 koku af rice in its passes- sion. This was to be shipped by the 27th ult. In return the Kore- Ans are to be fed on millet," During June last, according to the same piper, 61,046 koku of millet ware imported into Chosen fröra Manchuria. This brings the total quantity imported into the peninsula since January last for 460,049 koku. Compared with the returns for the corresponding Feriod of last year, an increase of 319,171 koku is shown. Along with the steady rise in the price of rice, the demand for millet in Chosen is rapidly increasing.

CONTRASTS IN MONEY.

were com-

The circumstances under which the conjunction of great activity on the Stock Exchange and per- sistently high money in Wall Street has occurred during the past fortnight have been unusual, says the New York Evening Post of July 5. With rates running to a figure between seven and 15 pe. cent. every day, save two, for the past two weeks, one has to go back to such years as 1899, 1907, 1906, and 1905 for a some- what similar example of con tinued stringency. In those years call loans touched much higher levels than now. Rates of 10 and 20 per cent. mon, while in December, 1839, there was a rate of 186 per cent. But these disturbances in the money market, accompanied by more or less frequent reports of deficits by the Clearing House banks, occurred usually in the autumn and early winter. Dur- ing the summer, before the West- ern banks began to draw on their New York correspondents for CUTTERCY. for moving." there was habitual ly It a condition of extreme ease. is, however, in contrast with more recent years, since the Federal Reserve bankers have been in operation, that the present situa tion is the Wall Street money market is chiefly remarkable. In 1915 the bank surplus remained constantly at a high figure, and money did not go above 216 Ber cent. The following year nothing higher than 6 per cent. was witnessed until the last week of November, though in December 15 per

cent. was charged. In 1917 the maximum was ] 10 per cent.

In all these years, however, the money market was subjected to very definite influences, most of which are now absent-con- dition which makes the present situation, in "some respects, unique. The reduction of the legal reserve requirements brought about by the establish- mert of the Federal banks in the

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