<h2><SPAN name="CHAPTER_II" id="CHAPTER_II"></SPAN>CHAPTER II.</h2>
<h3>EFFECT IN THE CITY.</h3>
<p>Monday, 3rd September, 1910, was indeed Black Monday
for London.</p>
<p>By midnight on Sunday the appalling news had spread
everywhere. Though the full details of the terrible
naval disasters were not yet to hand, yet it was vaguely
known that our ships had been defeated in the North
Sea, and many of them sunk.</p>
<p>Before 7 a.m. on Monday, however, telegrams reaching
London by the subterranean lines from the north gave
thrilling stories of frightful disasters we had, while all
unconscious, suffered at the hands of the German
fleet.</p>
<p>With London, the great cities of the north, Liverpool,
Manchester, Sheffield, and Birmingham, awoke utterly
dazed. It seemed incredible. And yet the enemy had,
by his sudden and stealthy blow, secured command of
the sea and actually landed.</p>
<p>The public wondered why a formal declaration of war
had not previously been made, ignorant of the fact that
the declaration preceding the Franco-German War was
the first made by any civilised nation prior to the commencement
of hostilities for one hundred and seventy
years. The peril of the nation was now recognised on
every hand.</p>
<p>Eager millions poured into the City by every train
from the suburbs and towns in the vicinity of the
Metropolis, anxious to ascertain the truth for themselves,
pale with terror, wild with excitement, indignant
that our land forces were not already mobilised and
ready to move eastward to meet the invader.</p>
<p>As soon as the banks were opened there was a run on
them, but by noon the Bank of England had suspended
all specie payments. The other banks, being thus unable
to meet their engagements, simply closed the doors,
bringing business to an abrupt standstill. Consols stood
at 90 on Saturday, but by noon on Monday were down
to 42—lower even than they were in 1798, when they
stood at 47¼. Numbers of foreigners tried to speculate
heavily, but were unable to do so, for banking being
suspended they could not obtain transfers.<span class="pagenum"><SPAN name="Page_17" id="Page_17">[17]</SPAN></span></p>
<p>On the Stock Exchange the panic in the afternoon
was indescribable. Securities of every sort went entirely
to pieces, and there were no buyers. Financiers were
surprised that no warning in London had betrayed the
position of affairs, London being the money centre of the
world. Prior to 1870 Paris shared with London the
honour of being the pivot of the money market, but on
the suspension of cash payments by the Bank of France
during the Franco-German War, Paris lost that position.
Had it not been that the milliards comprising the
French War indemnity were intact in golden louis in
the fortress of Spandau, Germany could never have hoped
to wage sudden war with Great Britain before she had
made Berlin independent of London in a money sense,
or, at any rate, to accumulate sufficient gold to carry
on the war for at least twelve months. The only way
in which she could have done this was to raise her rate
so as to offer better terms than London. Yet directly
the Bank of England discovered the rate of exchange
going against her, and her stock of gold diminishing,
she would have responded by raising the English bank-rate
in order to check the flow. Thus competition would
have gone on until the rates became so high that all
business would be checked, and people would have
realised their securities to obtain the necessary money
to carry on their affairs. Thus, no doubt, the coming
war would have been forecasted had it not been for Germany's
already prepared war-chest, which the majority
of persons have nowadays overlooked. Its possession
had enabled Germany to strike her sudden blow, and
now the Bank of England, which is the final reserve of
gold in the United Kingdom, found that as notes were
cashed so the stock of gold diminished until it was in a
few hours compelled to obtain from the Government
suspension of the Bank charter. This enabled the Bank
to suspend cash payment, and issue notes without a
corresponding deposit of the equivalent in gold.</p>
<p>The suspension, contrary to increasing the panic, had,
curiously enough the immediate effect of somewhat allaying
it. Plenty of people in the City were confident that
the blow aimed could not prove an effective one, and
that the Germans, however many might have landed,
would quickly be sent back again. Thus many level-headed
business men regarded the position calmly, believing
that when our command of the sea was again<span class="pagenum"><SPAN name="Page_18" id="Page_18">[18]</SPAN></span>
re-established, as it must be in a day or two, the enemy
would soon be non-existent.</p>
<p>Business outside the money market was, of course,
utterly demoralised. The buying of necessities was now
uppermost in everyone's mind. Excited crowds in the
streets caused most of the shops in the City and West
End to close, while around the Admiralty were great
crowds of eager men and women of all classes, tearful
wives of bluejackets jostling with officers' ladies from
Mayfair and Belgravia, demanding news of their loved
ones—inquiries which, alas! the casualty office were
unable to satisfy. The scene of grief, terror, and suspense
was heartrending. Certain ships were known to
have been sunk with all on board after making a gallant
fight, and those who had husbands, brothers, lovers, or
fathers on board wept loudly, calling upon the Government
to avenge the ruthless murder of their loved
ones.</p>
<p>In Manchester, in Liverpool, indeed, all through the
great manufacturing centres of the north, the excitement
of London was reflected.</p>
<p>In Manchester there was a panic "on 'Change," and
the crowd in Deansgate coming into collision with a force
of mounted police, some rioting occurred, and a number
of shop windows broken, while several agitators who
attempted to speak in front of the infirmary were at
once arrested.</p>
<p>Liverpool was the scene of intense anxiety and excitement,
when a report was spread that German cruisers
were about the estuary of the Mersey. It was known
that the coal staithes, cranes, and petroleum tanks at
Penarth, Cardiff, Barry, and Llanelly had been destroyed;
that Aberdeen had been bombarded; and there
were rumours that, notwithstanding the mines and defences
of the Mersey, the city of Liverpool, with all
its crowd of valuable shipping, was to share the same
fate.</p>
<p>The whole place was in a ferment. By eleven o'clock
the stations were crowded by women and children sent
by the men away into the country—anywhere from the
doomed and defenceless city. The Lord Mayor vainly
endeavoured to inspire confidence, but telegrams from
London, announcing the complete financial collapse,
only increased the panic.</p>
<p>In London all through the morning, amid the chaos<span class="pagenum"><SPAN name="Page_19" id="Page_19">[19]</SPAN></span>
of business in the City, the excitement had been steadily
growing, until shortly after three o'clock the "Daily
Mail" issued a special edition containing a copy of a
German proclamation which, it was said, was now posted
everywhere in East Norfolk, East Suffolk, and in Maldon
in Essex, already occupied by the enemy.</p>
<p>The original proclamation had been found pasted by
some unknown hand upon a barn door near the town of
Billericay, and had been detached and brought to London
in a motor-car by a correspondent.</p>
<p>It showed plainly the German intention was to deal
a hard and crushing blow, and it struck terror into the
heart of London, for it read as will be seen on next
page.</p>
<p>Upon the walls of the Mansion House, the Guildhall,
outside the Bank of England, the Royal Exchange, upon
the various public buildings within the city wards, and
westward beyond Temple Bar, proclamations were being
posted. Indeed, upon all the hoardings in Greater London
appeared various broadsheets side by side. One by
the Chief Commissioner of Police, regulating the traffic
in the streets, and appealing to the public to assist in
the preservation of order; and a Royal Proclamation,
brief but noble, urging every Briton to do his duty, to
take his part in the defence of King and country, and
to unfurl the banner of the British Empire that had
hitherto carried peace and civilisation in every quarter
of the world. Germany, whose independence had been
respected, had attacked us without provocation; therefore
hostilities were, alas, inevitable.</p>
<p>When the great poster printed in big capitals and
headed by the Royal Arms made its appearance it was
greeted with wild cheering.</p>
<p>It was a message of love from King to people—a message
to the highest and to the lowest. Posted in Whitechapel
at the same hour as in Whitehall, the throngs
crowded eagerly about it and sang "God Save our Gracious
King," for if they had but little confidence in the War
Office and Admiralty, they placed their trust in their
Sovereign, the first diplomat in Europe. Therefore the
loyalty was spontaneous, as it always is. They read the
royal message, and cheered and cheered again.</p>
<p>As evening closed in yet another poster made its appearance
in every city, town, and village in the country,
a poster issued by military and police officers, and
naval officers in charge of dockyards—the order for
mobilisation.</p>
<hr style="width: 45%;" />
<p><span class="pagenum"><SPAN name="Page_20" id="Page_20">[20]</SPAN></span></p>
<h2>PROCLAMATION.</h2>
<h3>WE, GENERAL COMMANDING THE 3rd GERMAN ARMY,</h3>
<div class="blockquot"><p>HAVING SEEN the proclamation of His Imperial Majesty the Emperor William,
King of Prussia, Chief of the Army, which authorises the generals commanding the
different German Army Corps to establish special measures against all municipalities
and persons acting in contradiction to the usages of war, and to take what steps they
consider necessary for the well-being of the troops.</p>
<p>HEREBY GIVE PUBLIC NOTICE:<br/></p>
<p>(1) THE MILITARY JURISDICTION is hereby established. It applies to all
territory of Great Britain occupied by the German Army, and to every action endangering
the security of the troops by rendering assistance to the enemy. The Military Jurisdiction
will be announced and placed vigorously in force in every parish by the issue of
this present proclamation.</p>
<p>(2) ANY PERSON OR PERSONS NOT BEING BRITISH SOLDIERS,
or not showing by their dress that they are soldiers:</p>
<p>(a) SERVING THE ENEMY as spies;</p>
<p>(b) MISLEADING THE GERMAN TROOPS when charged to serve as guides;</p>
<p>(c) SHOOTING, INJURING, OR ROBBING any person belonging to the German
Army, or forming part of its personnel;</p>
<p>(d) DESTROYING BRIDGES OR CANALS, damaging telegraphs, telephones,
electric light wires, gasometers, or railways, interfering with roads, setting fire to
munitions of war, provisions, or quarters established by German troops;</p>
<p>(e) TAKING ARMS against the German troops,</p>
<h3>WILL BE PUNISHED BY DEATH.</h3>
<p>IN EACH CASE the officer presiding at the Council of War will be charged with
the trial, and pronounce judgment. Councils of War may not pronounce ANY OTHER
CONDEMNATION SAVE THAT OF DEATH.</p>
<p>THE JUDGMENT WILL BE IMMEDIATELY EXECUTED.</p>
<p>(3) TOWNS OR VILLAGES in the territory in which the contravention takes place
will be compelled to pay indemnity equal to one year's revenue.</p>
<p>(4) THE INHABITANTS MUST FURNISH necessaries for the German troops
daily as follows:—</p>
<div class="center">
<table border="0" cellpadding="4" cellspacing="0" summary="">
<tr><td align="left">1 lb. 10 oz. bread. </td><td align="left">1 oz. tea.</td><td align="left">1½ pints beer, or 1 wine-</td></tr>
<tr><td align="left">13 oz. meat.</td><td align="left">1½ oz. tobacco or 5 cigars. </td><td align="left">glassful of brandy or</td></tr>
<tr><td align="left">3 lb. potatoes.</td><td align="left">½ pint wine.</td><td align="left">whisky.</td></tr>
<tr><td align="left">The ration for each horse:—</td></tr>
<tr><td align="left">13 lb. oats.</td><td align="left">3 lb. 6 oz. hay.</td><td align="left">3 lb. 6 oz. straw.</td></tr>
</table></div>
<p>(ALL PERSONS WHO PREFER to pay an indemnity in money may do so at the
rate of 2s. per day per man.)</p>
<p>(5) COMMANDERS OF DETACHED corps have the right to requisition all that
they consider necessary for the well-being of their men, and will deliver to the inhabitants
official receipts for goods so supplied.</p>
<p>WE HOPE IN CONSEQUENCE that the inhabitants of Great Britain will make no
difficulty in furnishing all that may be considered necessary.</p>
<p>(6) AS REGARDS the individual transactions between the troops and the inhabitants,
we give notice that one German mark shall be considered the equivalent to one English
shilling.</p>
<div class="right">
<b>The General Commanding the Ninth German Army Corps,<br/>
VON KRONHELM.</b></div>
<p>Beccles, <i>September the Third, 1910</i>.</p>
</div>
<div class="figcenter"> <SPAN href="images/i023-hi.png"><ANTIMG src="images/i023.png" width-obs="403" height-obs="600" alt="THE ENEMY'S FAMOUS PROCLAMATION." title="" /></SPAN> <span class="caption">THE ENEMY'S FAMOUS PROCLAMATION.</span></div>
<hr style="width: 45%;" />
<p>The<span class="pagenum"><SPAN name="Page_21" id="Page_21">[21]</SPAN></span> public, however, little dreamed of the hopeless
confusion in the War Office, in the various regimental
depôts throughout the country, at headquarters everywhere,
and in every barracks in the kingdom. The
armed forces of England were passing from a peace to a
war footing; but the mobilisation of the various units—namely,
its completion in men, horses, and material—was
utterly impossible in the face of the extraordinary
regulations which, kept a strict secret by the Council
of Defence until this moment, revealed a hopeless state
of things.</p>
<p>The disorder was frightful. Not a regiment was found
fully equipped and ready to march. There was a dearth
of officers, equipment, horses, provisions—of, indeed,
everything. Men had guns without ammunition; cavalry
and artillery were without horses; engineers only half
equipped; volunteers with no transport whatever;
balloon sections without balloons, and searchlight units
vainly trying to obtain the necessary instruments.</p>
<p>Horses were being requisitioned everywhere. The few
horses that, in the age of motor-cars, now remained on
the roads in London were quickly taken for draught,
and all horses fit to ride were commandeered for the
cavalry.</p>
<p>During the turmoil daring German spies were actively
at work south of London. The Southampton line of
the London and South-Western Railway was destroyed—with
explosives placed by unknown hands—by the
bridge over the Wey, near Weybridge, being blown up;
and again that over the Mole, between Walton and
Esher, while the Reading line was cut by the great
bridge over the Thames at Staines being destroyed.
The line, too, between Guildford and Waterloo, was
also rendered impassable by the wreck of the midnight
train, which was blown up half-way between Wansborough
and Guildford, while in several other places
nearer London bridges were rendered unstable by dynamite,
the favourite method apparently being to blow the
crown out of an arch.</p>
<p>The well-laid plans of the enemy were thus quickly
revealed. Among the thousands of Germans working in
London, the hundred or so spies, all trusted soldiers,
had passed unnoticed but, working in unison, each little<span class="pagenum"><SPAN name="Page_22" id="Page_22">[22]</SPAN></span>
group of two or three had been allotted its task, and
had previously thoroughly reconnoitred the position and
studied the most rapid or effective means.</p>
<p>The railways to the east and north-east coasts all reported
wholesale damage done on Sunday night by the
advance agents of the enemy, and now this was continued
on the night of Monday in the south, the objective
being to hinder troops from moving north from
Aldershot. This was, indeed, effectual, for only by a
long <i>détour</i> could the troops be moved to the northern
defences of London, and while many were on Tuesday
entrained, others were conveyed to London by the motor
omnibuses sent down for that purpose.</p>
<p>Everywhere through London and its vicinity, as well
as Manchester, Birmingham, Sheffield, Coventry, Leeds,
and Liverpool, motor-cars and motor-omnibuses from
dealers and private owners were being requisitioned by
the military authorities, for they would, it was believed,
replace cavalry to a very large extent.</p>
<p>Wild and extraordinary reports were circulated regarding
the disasters in the north. Hull, Newcastle,
Gateshead, and Tynemouth had, it was believed, been
bombarded and sacked. The shipping in the Tyne was
burning, and the Elswick works were held by the enemy.
Details were, however, very vague, as the Germans were
taking every precaution to prevent information reaching
London.</p>
<hr style="width: 65%;" />
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