New Britain herald., 1914-07-25

 SITUATION MAY
 CAUSE CONFLIC1
Diplomatic CiTc'es Sec in Russia Interference Danger of General
 European War.
SERvIAN PARLIAMENT
 ELECTIONS POSTPONE

Austrian Government Demands Sun
 precision of Pan-Servian Movemes and Punishment of Those Cor
 cerned i'm Assassination in BosndI
 of the Heir to Emperor Francl
 Joseph's Throne.
 London, July 25.-In all the Ell ropean capitals today a very RravI view is taken of the Austro-ServiaI situation, arising out of the preser tation to Servia by the Austrian goy ernment of a virtual ultimatum de manding the suppression of the ParI Servian movement and the punish ment of those concerned in the al sassination in Bosnia of the heir the Austrian throne. Diplomat circles see in the dispute and in tn added possibility of Russian interfel ence on behalf of the little Slav nd ton the danger of a general Euro pean war.
  moralization set in at the opening cI business today owing to a rumor ths Russia. had begun to mobilize he' great army in the preparation fol eventualities. Dealers offered every thing, and British consoIs sold ol 1 3-4 to 73 3-4. Rio Tintos lo& 3 points, Russian bonds 1-2, Aud trian and Hungarian bonds 2 point& while the leading American stock were quoted at from s1 to $3 belo% parity. Canadian Pacific, howeve} showed the most loss. fractiona hardening occurred before noon, bl} the market remained nervous and ex cited.
 Unfavorable Answer Expected.
 The Servian government had nd until this morning given any hir1 as to what its reply to Austris,s note would be, but in quarters which arI not official no hope is held out tha the answer will be favorable. ShoulI this turn out to be the fact unles Russia should be successful in her eq forts to have the time limited in favoI of Servia, Austria will, it is pointed out, before many hours have passeX take steps to enforce her demands.
 It is argued in authoritative quarl ters that Austria Hungary if left alon4 could crush her diminutive neighbnI in short order. but 1t is feared thaI Russia may find herself unable tl stand idly by and see a Slav natiol practically extinguished.
 Assumes Defiant Attitude.
 Already part of the Russian pred has taken a defiant attitude. demand ing that government in St PetersburI undertake the protection of Serviz@ The Novoe Vremya says
 The Russian government cl-arII recognizes that the Austrian ultimaI tum is particularly directed again3 it and Russia is replying not onlI by words but by the requisite actionI Servia is being subjected 10 an unI lawful attack and will not remaiI alone. The disturbers of the peacI have not to deal with Serpia only bs} also with Russia. Unless the Austria ul,imatum is withdrawn Russia wit not remain a silent spectator of vio. lence"
 Advocates Averting Conflict.
 The Retch on the other hand saya|
 Our allies hitherto have been iI no wise disposed to enter into conX fiicts arising out of com piications n the near east, and our Englis friends already are giving the pru| dent advice to give way. The onlz means of averting a European conI f1ict is abstention from giving sn& encouragement to Servia-"
 An Exchange Telegraph company'X from Vienna says news wa received there today to effect thaX the Servian government was makinl preparations to evacuate Bel1rade the capital. It adds that many o the troops already have left the city1 which is considered untenable, and are retiring toward the south.
 Request Not Granted.
 A special despatch from vienn} says the Russian charge d'afrairea who requested the Austro- Hungzria time limit for the Servian reply to th@ could not be granted.
 Rumored King Has Abdicated.
 Servia has accepted Austria Hum gary's ultimatum, according to a speI ciaI cabIegram received here fhll evening from Belgrade by way ol Vienna.
 Another despatch received throuef the same sources says it is rumored that King Peter of Servia has abdf1 cated.
 Accepts Demands Under Protest
 Vienna, July 25.-A despatch fromX Belgrade to the Neue Freie Presse says Servia has decided to accept the
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