industry of this Republic is progressing. As in the case of Chile, but apparently with more justification, complaints were made (p. 237) that Colombia had permitted acts in assistance of the Germans and had violated her neutrality. Colombia denied the charges, through the Chargé d'Affaires at the Legation in London, who cited a decree of September 1, "enforcing" all measures required to safeguard the neutrality of the Republic in connexion with the operations of the wireless stations at Cartagena and Santa Maria, the only two wireless stations in the country. A decree of September 11 was quoted to the effect that in the absence of properly qualified experts who could satisfy the Government as to the way in which the censorship and transmission of messages would be conducted, the station at Cartagena "should be closed." There were also decrees of August 12 and 22 to ensure strict observance of neutrality rules by shipping and users of ports. The existence of these decrees was not in dispute. Later on the Chargé d'Affaires reported that official cables from Colombia of November 19 stated that the French Minister at Bogota and His Majesty's Naval Attaché in Washington had expressed their thanks to the Colombian Government and their satisfaction with the action taken to carry out the requests of the Allied Governments. The representations of the latter had, in fact, been effective. treaty was under consideration by the United States Congress for the payment to Colombia of 5,000,000l. as indemnity for the loss of Panama territory by the revolution of 1903. The treaty had not been ratified by the United States Senate at the close of the year. From Venezuela there is nothing more novel to record than a frontier raiding difficulty with Colombia.

CHAPTER IX.

AUSTRALASIA.

1. AUSTRALIA.

A

HAD it not been for the dominating influence of the war the year in Australia would have been memorable for the unfortunate consequences attendant upon a season of short rainfall. The absence of rain was felt early in the year, and by mid-winter it was clear that both small and large holders would suffer severely. The lambing, which, in a great pastoral country like Australia, makes such a notable addition to the national income, was a partial failure, and over wide areas, particularly in the south of the continent, stock owners had considerable trouble to keep their flocks and herds intact. Among the farmers, the wheat growers were the main sufferers. The 1913-14 harvest exceeded 100,000,000 bushels, and was the largest the Commonwealth had produced. The crop which was being garnered at the close of 1914 produced only 26,500,000 bushels. With the single exception of New South

war.

Wales, which had a small quantity of wheat available for export, none of the States grew enough grain for their own flour necessities. The partial failure of the rainfall was the more serious because, as a great pastoral and a considerable agricultural community, Australia must otherwise have made very substantial gains out of the high prices for food-stuffs established by the At the same time, however, too much attention must never be paid to one season of bad rainfall in Australia. Previous to 1914 the Commonwealth enjoyed an almost unbroken run of exceptional prosperity for ten or eleven years, and there had in that time not only been remarkable development in all primary and secondary industries, but also a very considerable accumulation of wealth by all classes. Fortunately, as the year closed there were heavy and widespread rains, and with excellent prospects of a return to happier conditions in 1915.

The declaration of war against Germany was not taken quite so calmly by the Australian people as by the people of the United Kingdom. The Australians, as a youthful community, naturally exercise less restraint in a time of Imperial stress than the experienced veterans of the Mother Country. Then the high feeling which prevailed in Australia was accentuated by the sense of isolation from other parts of the Empire, and particularly from the seat of war; while the news service dealing with the war was, particularly in the early stages, far less satisfying in the Commonwealth than it was in London. All cable communications were severely censored both before they left the United Kingdom and in many cases again after they reached Australia, and the consequence was that the Australian people were apprehensive lest they should be receiving only information which was favourable to the British cause. It is necessary to mention these facts in order to understand the marked contrast presented by the British people at home and those of the self-governing Dominions in the early stages of the war. The scenes of enthusiasm which attended the departure of the first contingents from Australia found no parallel in the United Kingdom, and the Australian people were at the same time far more anxious and "jumpy."

The Australians are made up to the extent of 97 per cent. of Anglo-Saxon blood, and so there was nothing remarkable in the immediate response to the Empire's call to arms. The young manhood of the Commonwealth fell into line just as naturally and spontaneously as the manhood of London or Edinburgh. Within two or three days of the declaration of war the Commonwealth Government had offered 20,000 troops for service in any part of the world. This offer was immediately accepted by the Imperial Administration, and from that moment until the year closed volunteers came eagerly from every class and every portion of the Commonwealth. The people of Australia entered with special enjoyment into the task of the destruction of Germany's ambitions

It

and the acquisition of her territory in the South-West Pacific. had always been felt that some of these territories, and especially German New Guinea, were too close to the Commonwealth, and the time might come when they would be the cause of serious trouble between the two peoples. Moreover the flying expeditions which the Imperial Government ordered or sanctioned for the conquest of these enemy colonies, gave an opportunity to the young Australian Navy to demonstrate its seamanship and fighting capacity. Before the war was many days old, the first Expeditionary force, with Colonel Holmes in command, was on its way, under Navy protection, towards the North, and a week or two later the whole Empire was delighting in its initial successes. The operations of this Force were of historic interest, because they marked the first occasion upon which Australians engaged in warfare without the co-operation and support of other British troops.

The rapidity with which the men under Colonel Holmes' command were enrolled and despatched showed the general efficiency of the Australian Defence Force. Recruits were called for on August 9, and by August 18 the Force was embarked under sealed orders "For the Tropics." After a fortnight's training on the Queensland coast, the expedition proceeded direct for the German headquarters at Simpsonshafen, in New Pomerania, or, as the island is more familiarly known, New Britain. It was from Simpsonshafen that German New Guinea and other territory in the vicinity was governed, and the first aim of the Australians was to locate and destroy a wireless station known to be at work upon the island. A small German force supported by a number of natives offered sharp resistance to the advance towards the station, and before the Australians carried the position they lost seven men, including Lieutenant-Commander Elwell, R. N., and Captain Bryan Pockley, of the Australian Army Medical Corps. All resistance fizzled out within a few days, and on September 12 the British flag was hoisted, and possession taken of the Island. Before the end of the month a landing had been effected at Friedrich-Wilhelmshafen, the chief German station upon the mainland of German New Guinea, which capitulated without resistance. Meanwhile other units of the Australian Navy convoyed the little New Zealand Force which took possession of German Samoa; and the Bismarck Archipelago and other islands were captured at about the same time. Then the Japanese took the Marshall Islands, which they have since graciously handed over to the keeping and administration of the Commonwealth. Had the conquest of these Pacific Islands not been overshadowed by the fateful struggle in Europe, more would have been heard doubtless of the extent and richness of Germany's lost colonies. Sufficient for the present to say that they make up a wide area of land teeming with qualities capable of great wealth production. At present the new territory is being ad

ministered by resident officials specially appointed by the Commonwealth.

When war was declared there were a considerable number of German vessels of importance in Australian waters or about the coast, and few if any of these escaped the activities of the local Navy. The entry of these ocean captives to the various ports was the signal for outbursts of enthusiasm among the people, who were making prisoners of war for the first time in their history. Australia's first serious mishap occurred in the loss of Submarine A.E I., which disappeared mysteriously between August 14 and 19 in the Pacific close to the Australian coast. The total crew, made up of thirty-five officers and men, were drowned. believed that the submarine foundered owing to an accident.

It is

Meanwhile recruiting was proceeding vigorously for the main Expeditionary Force, intended ultimately for service on the Continent, but subsequently diverted, temporarily at least, to Egypt. In the South African War the Australian troops were made up almost entirely of Mounted Infantry, and a preference was consequently given to young countrymen. In the present campaign, however, the call was chiefly for Infantry, and so the men of the cities had equal opportunity. The response was of the best kind; it was common for remote stockmen to present themselves to the recruiting officers after an overland journey of many hundreds of miles. The first Force to embark represented a complete fighting unit of upwards of 22,000 men, with its proper complement of Cavalry and Artillery and fully equipped in all its branches. Many of the men had seen service in the South African War; a large number were drawn from the oldest of the Cadets, and so were the first-fruits of Australia's system of compulsory military training. As a whole, however, it was necessary that the Force should undergo a few months' training before entering upon active service in Europe, and this training was carried out in Egypt, while the men were at the same time available for the defence of that territory against the Turks.

It was during the transport of the Expeditionary Force to Egypt that H.M.A.S. Sydney had the dramatic encounter with the notorious Emden. The Sydney was part of the convoy of the transports, and early one morning there came a wireless call from Cocos Island that a foreign warship was approaching. The Sydney responded immediately, and a few hours later sighted the Emden, and forced her to accept battle. In the opening round the duel was fairly even, and the Emden gunners, shooting with great precision, got two or three shots home, without, however, causing the Sydney much damage. Thenceforward, the Sydney showed her superiority, and after a short fight, the Emden, very badly damaged and after suffering terrible casualties among her crew, was broken and beached upon one of the islands of the group. The Australian flagship was at about this time co-operating with

Japanese and French battleships in scouring the Pacific in search of the German squadron which had destroyed the Monmouth and the Good Hope, and so contributed indirectly to Admiral Sturdee's great victory at the Falklands.

The response to the various patriotic funds was similar to that in other parts of the Empire. Money and comforts of diverse kinds flowed in on a most generous scale. By the end of the year upwards of a million sterling had been contributed; the Commonwealth Parliament voted 100,000l. to the relief of distressed Belgians, and the State Governments and a large number of Municipalities also contributed handsomely to the same cause.

The Commonwealth.-Early in the year Lord Denman resigned the Governor-Generalship owing to ill-health, and was succeeded by Sir Ronald Munro Ferguson, who arrived in Australia in May. Almost the new Governor's first act, and one which led to much controversy, was the granting of a double dissolution to the Federal Parliament at the request of the Prime Minister, Mr. Joseph Cook. Mr. Cook's aim was to put an end to the stultifying deadlock which existed between the House of Representatives, in which the Government had a slender majority, and the Senate, where the Labour Opposition was overwhelmingly dominant. The elections were arranged for September, but immediately upon the declaration of war the Labour party, led by Mr. Fisher, urged that an appeal to the country under the circumstances was undesirable, and that the Government should continue to carry on until a more favourable season for party controversy. This course, however, was not deemed practicable, and the elections were held. The returns gave Labour a majority of 41 to 33 in the House of Representatives, and 31 to 5 in the Senate. Mr. Cook resigned, and a Labour Cabinet was formed as follows: Prime Minister and Treasurer, Mr. Fisher; Attorney-General, Mr. Hughes; Minister for Defence, Mr. Pearce; Trade and Customs, Mr. Tudor; External Affairs, Mr. Arthur; Home Affairs, Mr. Archibald; Postmaster-General, Mr. Spence; VicePresident of the Council, Mr. Gardiner; Honorary Ministers, Messrs. Jenson, Mahon and Russell. Mr. Arthur died before the end of the year, and was succeeded as Minister for External Affairs by Mr. Mahon. Mr. McDonald became Speaker in the House of Representatives, and Mr. Givens President of the Senate. Mr. Fisher in his Budget, presented on December 3, estimated the expenditure for 1914-15 at 37,500,000l., which included nearly 12,000,000l. to cover the local cost of the war. The revenue was estimated at 23,273,000l., and the deficit of 13,000,000l. was provided for by a loan of 10,500,000l. by the British Government, and Treasury Bills to the extent of 2,588,000l. Much gratitude was expressed towards the Home Government for the generous manner in which they came to the financial assistance of the Commonwealth. A loan of 18,000,000l. was granted