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Petersburg officially and solemnly that it has no desire for territorial gain in Servia; that it will not touch the existence of the Kingdom, but that it desires to establish peaceful conditions. According to news received here, the call for several classes of the reserves is expected immediately which is equivalent to mobilization.

The meaning of this double move was that the German Government would do everything it could to retard the entry into the business of the Western Powers, but would do nothing to prevent Russia, Servia, and the Slav civilization as a whole from suffering final humiliation or war. That game was played by Germany clumsily enough for nearly a full week.

The annexation by Austria of Bosnia and Herzegovina, in which Servians predominate, increased the Servian hatred and the indignation of the whole Slav world to the point of violence. A conflict was avoided with difficulty. These principalities had hoped to form part of a Greater Servia.

In so doing it relied on the assurances of the German Ambassador, von Tchirsky, that Russia would not fight. The partial mobilisations of Austria and Russia earlier were intended to threaten and protect Servia. The procedure of Austria and Germany now claims our attention. The policy of Count Berchtold, Austria's Foreign Minister, had generally been pacific.

On July 23rd the Austro-Hungarian Government presented an ultimatum to Servia, demanding unconditional acceptance within 48 hours, an ultimatum which the Temps next day described as 'unprecedented in its arrogance and in the extravagance of its demands'. Of it Sir Edward Grey said: 'I had never before seen one State address to another independent State a document of so formidable a character.

In past times it was a place of great importance, and contained sixty thousand inhabitants, being the entrepôt of the trade between Servia and Bosnia; but this commerce has been almost ruined by the establishment of the quarantine; and most of the Servian inhabitants, in consequence of a bloody affray with the Turks, have transferred themselves to Poshega, a town at two hours' distance, and formerly a Roman colony, of which Mr.

Perhaps Germany would have been more conciliatory if she had foreseen the events of the following autumn. On March 13, 1912, Servia and Bulgaria framed a secret treaty of alliance against Turkey, which contained conditions as to joint action against Austria or Roumania, if they attacked, and a general understanding as to the partition of Macedonia.

The Grafin, still placid, says Austria will now very properly punish Servia, both for the murder and for the insolence of refusing her, Austria's, just demands. The Graf merely telephoned that Servia had refused. It did seem incredible. I did think Servia would deserve her punishing. Yesterday's papers said the demands were most reasonable considering what had been done.

Servia and Roumania to be reestablished as independent kingdoms, with such rectifications and modifications of frontier as a joint committee should decide upon. The German colonies to be restored. The conquered parts of Mesopotamia to remain under the protection of the British Government. Poland to be declared an independent kingdom.

The Save is the greatest of all the tributaries of the Danube, and is uninterruptedly navigable for steamers a distance of two hundred miles. This river is the natural canal for the connexion of Servia and the Banat with the Adriatic. It also offers to our summer tourists, on the completion of the Lombard-Venetian railway, an entirely new and agreeable route to the East.