Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-08-01

Atoh ISOLATION, Which means, in the
first instance, can it destroy the Ger
man Emperor's navy? They are con-
cerned also as to whether the food
supplies can be maintained and to
what extent Private fortunes will be
impaired by the financial upheaval of
the war.
Situation tho Same
The military situation stands where
1t did last night. The mobilization of
the naval forces has been completed
and the army is on war footing. ex-
cept for the calling out of the Terri
tortals. The machinery for their mobil-
ization requires only a word to be set
in motion.
The request of the war office that
the English newspapers refrain from
publishing army and navy movements
has not yet met with a patriotic re-
Spouse. The London evening papers
publish news concerning almost all
the armies of Europe, except that of
Great Britain and regarding the
whereabouts of the British fleet and
the preparations of the British army
they say nothing. There is a popular
belief that the fleet is in the neighbor-
hood of Flushing, in the North Sea,
but the truth is known only to the
members Of the government.
Dover and Shearness are virtually
on war basis. and protective boo1ns
are ready to be drawn around at a
moments notice. The other harbors
have been mined. The Calais and Os-
tend steamers are likely to be trans
ferred to Falkston from Dover.
The War Council
The war council of the British cab
lnet is composed of Mr.. Asquith. the
prime minister; Sir Edward Grey. sec
rotary of state for foreign affairs;
Niscount Haldane. lord-high chancel-
Ter; and Winston Spencer Churchill,
first lord of the admiralty. They are
the ministers who directed the Joint
diplomatic and military policy of the
country during the Agadir crisis They
remained in conference on military
matters after the last two cabinet
meetings.
Sir Edward Carson, the Ulster
Unionist leader, announced today that
majority of the Ulster Volunteers
We're ready for home service and that
large contingent were willing for
any service where they could be use
full.
No Financial Panic
While the London Stock Exchange
Is closed for the first time in its his
tory by the threat of war, and all the
exchanges in England and Scotland
Immediately shut their doors on learn
ing of London's action, there has been
no financial panic. Nor has there been
any important failures.
The general feeling among the
financiers Is that London has wealth
cred a remarkable storm with great
credit. The bank rate was doubled
from to per cent, but during the
Crimean war it touched 10 and stayed
there for six weeks. Short loans today
commanded 10 and 10 1-2 per cent. in
terest.
While nothing occurred like run
on the banks, there were symptoms
which caused anxiety to everybody.
Banks doing an ordinary commercial
business refused demands to pay
checks with gold and paid partly in
gold and partly in Bank of England
notes.
Long lines of people had assembled
at the Bank Of England when the
bank opened to get gold for notes, and
many were turned away at closing
time. 1t was expected that the Bank
ing act would be suspended. This
would mean that the Bank of Eng
land would not be compelled to re-
deem its notes with gold. Premier AS
quith and Chancellor David Lloyd
George with the governor of the Bank
of England and representatives OF 9TH
er banks held a conference tonight,
however, and decided that the suspne-
sion of the act was not necessary at
present. They would be prepared to
act, however, when 1t was necessary.
Fortunately Monday is a legal holiday
and the banks will not be open in
the ordinary course, which gives
breathing spell.
The governors Of the Stock Exchange
were warned this morning by mem
bers, estimated at from 100 to $50, that
If the Stock Exchange opened they
would be ruined. A governor Of the
Bank Of England Is authority for the
statement that there is virtually no
doubt that the banking act will be
suspended before business Is resumed
and that the Bank of England Will
issue one pound notes to relieve the
strain, the smallest notes at present
being five pounds.
Drawing by Depositors
At all the banks today were lines OF
| small depostors drawing one hundred or
two hundred pounds. which they thought
would be necessary as ready cash for the
buying of food IL the situation did not
brighten.
When the banks open on Tuesday prob
ably tens of thousands of small deposit
ors will be ,clamorinsl for their money
There are more people in England than
any country in the world living on the