WaybackWire

ST PETERSBURG, Wednesday.—The sovereigns have taken a hand. The Kaiser has telegraphed to the Tsar, and his telegram crossed on its way one from the Tsar to the Kaiser.

Russia has accepted in principle Sir Edward Grey’s proposal, Reuter learns in London, but at the same time wishes to continue a direct exchange of views with Vienna.

In Berlin, a German agency telegram states, the Kaiser has received the Chiefs of the General Staff and the Naval Staff. He proposes in some days a prolonged stay at Wilhelmshoehe Castle, a decision that has had a favourable effect.

Here a great patriotic procession formed on the Nevsky Prospect this afternoon and marched with banners to the Servian legation, where there were speeches, singing and cheering. It went on to the French and British embassies, the crowds still growing.

LONDON, Wednesday.—“The situation at this moment is one of extreme gravity,” the Prime Minister told the House of Commons to-day.

Mr Asquith added that the Government is unrelaxing in its efforts to do everything in its power to circumscribe the area of possible conflict.

The Cabinet sat for over two hours. Sir Edward Grey arrived late, after a prolonged conference with the German Ambassador, and though he had been expected to make a statement in the House, he did not speak.

In the Lords, Viscount Morley said for the Government that the other Powers were in active communication on how best to keep the war from spreading beyond the area immediately concerned. Of fresh news he had little: “I am afraid I have very little information to give, indeed hardly any.”

VIENNA, Wednesday.—“Austria is being stripped of its male population for the war with Servia,” a dispatch from the capital runs. “Shops are closed and business all but paralyzed because of the exodus of all reservists to the front.”

The State has requisitioned the entire train service, and private transport in the monarchy has ceased.

Provisions in Vienna have risen fifty per cent, and dealers have been attacked and mobbed by angry crowds.

The Fremdenblatt says Europe will now see that Austria-Hungary is a nation and not merely a political entity. “The idea of a Greater Servia will be shattered by our united strength.”

SINGAPORE, Wednesday.—The share-dealing firms of Singapore have had general instructions to stop buying, as the share market at home is under the influence of the political situation.

By noon to-day Mr E. von Zach, Consul for Austria-Hungary, had received no official word from his Ambassador in London that Austria had declared war. The Austro-Hungarian male population here was only 16 at the 1911 census. Rumours that German residents have been told to be ready to go home are not borne out at the German consulate, but the 180 or so Germans in Singapore each know the post they would go to on news of a general mobilisation.

In Calcutta, Associated Press of India telegrams report, business with the Continent has stagnated. Jute sellers refuse to operate until the position is defined, and shipping companies restrict bookings. Marine insurance war risks are quoted at three-eighths for British ports, one and a half for German and one per cent for Austrian or Russian.

At Karachi the banks are widening their margins, and a rise in the Bank of England rate is expected on Friday. Continental sugar has gone up. Foreign lines refuse to book to the Continent, the Hansa line among them, though British shipping is not yet affected. “Generally it may be stated that the whole of the markets in Karachi are on the toes of anticipation and are patiently and carefully watching developments.”

SINGAPORE, Wednesday.—The Malaya Tribune holds Austria fully justified and thinks Russia’s mobilisation of her territorial forces may be a bluff, meant to make Germany and Italy think. Yet it expects a general European war: “nothing short of the miraculous intervention of Providence can prevent it.”

The Bombay Chronicle finds that the Vienna communique leaves little room for hope, and praises Sir Edward Grey’s appeal to the Powers. “It would seem, therefore, that only a diplomatic miracle could prevent the threatened conflagration.”

The Pinang Gazette thinks Servia ill prepared to hold out for long against Austria-Hungary if the war stays local, and is the most hopeful of the three: “Since last writing on the subject, the telegrams give greater hopes of escaping outside intervention.”