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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Nov. 16, 1914)
TTTE MORNING OREGONTAN, MONDAY, NOVEMBER 16, 1914. NEUTRALITY RULES FRAMED FOR GANA L Hospitality to Belligerents Is Strictly Limited; Fighting Ships Kept Apart. AIRCRAFT ARE RESTRICTED Repair Facilities to Be Used Only In Cases of Strict Necessity. Commanders Must Take Oath They Will Obey' Rules. "WASHINGTON, Nov. 15. President Wilson's proclamation intended to safeguard the neutrality of tho Pana ma Canal Zone. Just completed and made public, extends the prohibitions to aircraft, public or private, of. bellig erent powers, which are forbidden to rise from or descend upon canal zone territory or "to pass through the air spaces above" the land or water of the zone. It also forbids any use of the wireless telegraph by belligerent vessels within zone jurisdiction except on business in connection with the canal. Accompanying the proclamation is an agreement between the state de partment and the minister from Pana ma, E. A. Morales, concluded October 10. It provides that hospitality extend ed In the waters of the Panama repub lic to a vessel in its service of a bellig erent power shall serve to deprive such vessel of like hospitality in the Panama canal zone for a period of three months and vice versa. Troopa Must Kot Disembark. Belligerent powers are forbidden by the proclamation to embark or disera bork troops, war munitions or warlike materials In the zone, except In case of necessity due to accident. Bellig erent vessels are not to remain in the canal zone territorial waters longer than 24 hours at a time except when in distress, and the old requirement of 24 hours between departures of opposing belligerent ships is retained. Only in case of actual distress and to make a vessel seaworthy may the United States repair facilities and docks be used by belligerent ships, and the work must be done speedily under supervision of canal authorities. Except by special arrangement, there shall not be at any one time more than three war vessels of any one nation. Including those of allies, in either ter minal port or its adjacent territorial waters or more than three such ves sels in transit through the canal, or more than six at one time in all the territorial waters of the zone. Belligerents Kept Apart. When opposing belligerent ships are simultaneously present, the 24-hour rule of departure must be observed be tween them, order of departure to be determined by order of arrival, except where circumstances make extensions of stay permissible. A belligerent ves sel must not leave within 24 hours af ter departure of an adversary's pri vate vessel. The proclamation defines a warship as a public armed vessel commanded by a duly commissioned government officer with a crew under regular naval discipline, the vessel being qualified by armament and personnel to take offensive action against the enemy's public or private ships. Except as to hospital ships, the -same treatment is to be given every vessel, belligerent or neutral, armed or not. that does not fall under this definition when It Is employed by a belligerent power as a transport, fleet auxiliary or otherwise to aid hostilities. Passage through the canal is to be accorded only on sworn assurances by commander of observance of rules. Bel ligerent ships are not to revictual nor take on coal except as may be strictly necessary. Prizes of war are to be governed by the same rules. FEDERAL BANKS ARE OPEN (Continued From First Page.) amount as the tides of business rise and fall and that there will be no pleth ora of money to lie Idle. They will be obligations of the United States Government, which National bank notes are not, and will have back of them a large reserve of gold in the regional banks. Through them the reserve banks are expected to come to the aid of any needy member bank which has plenty of good paper but needs cash. To Insure the flow of money reserve banks themselves may be required to rediscount the discounted paper of other reserve banks. More than $250,000,000 of the new notes have been ordered by the Con troller of the Currency for the 12 banks. They are to be accepted by all member banks and for all customs, taxes or other dues. "Mobilisation" Not Concentration. Next to the elasticity of tte new cur rency, officials value the "mobiliza tion" but not concentration of reserves which it will insure. This, they point out, does not mean the concentration of vast sums from countrj banks in reserve cities and central reserve cities as under the National banking act. but their appearance in large part on the debit balances of the 12 reserve banks In widely scattered parts of the coun try. These reserves will be as near as possible to, the door of the member bank to which they belong in times of need and there can be no refusal from a reserve bank to return them in cases of exigency. A remnant of the present system still remains in the provision by which banks may keep a certain proportion of their reserves with other member banks in cities now known as reserve and central reserve cities. At the end of three years, however, that will be changed and all reserves will be held either in a bank's own vaults or with a Federal bank. The 12 banks will start out with a total cash reserve of about 243,000.000. Another point not forgotten by ad mirers of the law is the fact that th different reserve requirements will re lease about $464,000,000 now tied up in reserves and will afford far greater opportunity for a borrower to get a hearing and a loan. Banking: Powers Limited. The reserve banks are not to do a banking business except with member banks. They are empowered, however, to engage in open market transactions In the buying or selling of cable trans fers and bankers' bills of acceptances and bills of exchange. Other transac tions Include buying and selling of bonds or notes of the United States, paper issued In anticipation of the col lection of taxes or assured revenues of any state or political subdivision in the continental United States. The banks are to establish, subject to ap proval of the Reserve Board, rates of discount to be charged for each class of paper. They may also, with the Board's consent, open and maintain banking accounts in foreign countries for the purchase or collection of bills of exchange. In the future the clearings of the banks of the country are expected to be made through these regional banks, which may in time lead to the aboli tion of many clearing-house associa tions. Clearings which involve banks in widely separated parts of the coun try probably will be made with much greater rapidity through new banks than through ordinary commercial channels. Savins; of Time "Will Be Great. It has been estimated that through this saving of time alone the use of hundreds of millions of. dollars for many days will be saved. In time the new system will retire the 2 per cent United States bonds now FACTS ABOUT NEW BANKING SYSTEM INAUGURATED TODAY. Twelve Federal reserve banks will open their doors. They will be situated at New York, Boston. Philadelphia. Richmond, Atlanta, Cleveland, Chicago, Minneapolis, St. Louis, Kansas City, Dallas and San Francisco. Their entrance into the field of rediscount will mark the first great change in the banking sys tem of this country in the last 50 years, since the National bank was conceived and called Into be ing after the Civil War. For the present the operations of the banks will be limited largely to the rediscounting of notes, drafts and bills of ex change. As experience is gained steps to have them exercise other functions under the currency act will be taken. The system begins with 7571 member banks. Their author ized capital is put at $105,795. 600, of which one-sixth has been called and is in their vaults. The exact figures for the cash re serves in all 12 banks has not been accurately computed, but the estimate puts the amount at close to $250,000,000. The reserve banks begin opera tions at a time when members of the board feel that there Is an excellent opportunity to test the value of the system. Their abil ity to rediscount paper is count ed on as one of the means to loosen the purse strings of the banks, provide machinery for caring for crops and generally meet business needs. used principally as a basis for National bank notes. There are more than $700,000,000 of those bonds now out standing and their retirement is to be spread over a period of 20 years. With their passing the National bank circu lation based on them and not upon the life beats of commerce will disappear and unless by that time Congress has enacted a new act. the Nation will have a currency that in theory at least responds to the growth of crops, the throb of industrial plants and the progress of the business world. LAST VODKA LINE LONG RUSSIANS BY THOUSANDS WAIT IN SNOW FOR LIQUOR. GERMANSGQUNTQN WINTER TO AID THEFfl Field Trenches Impossible; Ice Facilitates Advance of Kaiser's Armies. SWAMPS LOSE TERRORS Men, Women BTrad Stand to Lay In and Children of Petro From Early Morning Final "Wet" Supply. rETROGRAD, ' via London, Nov. 14. Thousands of men, women and chil dren have stood since 4 o'clock this morning in a driving snow storm be fore the doors of the liquor shops on this, the last day on which It is pos sible to purchase light wine and beer under te prohibition act of the Rus sian government, which on Monday becomes absolute. Applicants for a final supply of bev erages came with baskets, sacks, carts and wheelbarrows, many having pawned their last belongings to pro cure means to buy. This final prohibition act Is the last of three distinct liquor reforms, the first curtailing the sale of vodka and the second abolishing it absolutely. The third measure extends the prohi bition to every form of alcoholic drink in all portions of the empire under martial law. Cities included under the prohibition are Odessa, Riga, Warsaw, Moscow, Kiev and virtually all cities of Western Russia. Greatest Obstacle to Movement Into Czar's Dominions Declared Re moved by Generals De cember and January. BERLIN, Nov. 4. (Correspondence of the Associated Press.) The prospect of a Winter campaign in Russia presents no terrors to the German military writers, now dealing- with the problem of a long continuance of the war. Far from expecting a repetition of Napoleon's disastrous experience In the Moscow campaign, they look on the great Co r s lean s conquerors. General Decem ber and General January, as allies, who will remove for them two of the great est obstacles to operations aaginst the Russians, namely, the transportation problem and that of overcoming the natural defenses of the country its swamps and rivers. Trenches Made Impossible The expert of the Deutsche Tages zeitung points out, too, that the Rus sians, in order to stem the German advance, have relied largely on in trenchments laid out on a tremendous scale. Once the ground is solidly frozen the construction of such works for de fense will be greatly hampered. "Every battle has demonstrated the value to the Russians of the trenches and other military Held works," says the writer. "It has been difficult in all cases to take positions so protected, and the Russian successes have been mostly due to the laying out of fortified positions in the open field. Important Factor Lost. "With the ground frozen and no longer easily worked with pick , and shovel, the laying out of earthworks will be made extremely difficult, and the Russians, whose forte from the times of Napoleon to Mukden has laid In the defense of field fortifications, will thus lose the most important factor in the defensive tactics. "Troops operating on the offensive must deal with the 'fifth element,' as Napoleon called the Russian mud. In the Winter the bad roads are covered with snow and may then be used by sleighs, and the great rivers and swamps, which form the principal fac tors in the Russian defense lines, will then be covered with ice, permitting easy crossing everywhere. Swedish King Proves Theory. "The idea that Winter was the best season in which an attack on Russia might be made is that of a genial sol dier of history, Charles XII. of Sweden, who afterwards demonstrated the cor rectness of his conclusion. He waited with his advance into Russia in 1707 until cold weather had set in, and after the rivers and swamps of Poland had been frozen over, he crossed the Vistula on December 29 and advanced rapidly as far as Wilna, where he intended to overtake the retreating Russians. The enemy, however, retreated again, and this Winter campaign brought no re sult, because King Charles could not get the Russians to stand. "Napoleon counted on the aid of Win ter in his campaign in 1806, but the weather was against him. December of that year left the rocds as soft as they had been in the Autumn, and the French were obliged to quarter them selves on the Poles and wait for cold weather. Frost finally came on Feb ruary 1 and six days later the battle at Prusslan-Eylau was fought. Napo leon, as well as King Charles, availed himself of the opportunity offered by harder roads and frozen rivers. Both Armies Hampered. "As Carl Bleibtrau In his work on the campaign of Napoleon in Russia in 1812 has shown, it was not the cold that demanded the greatest sacrifices in hu man lives. Napoleon lost 200,000 men on his advance into Russia and only 100,000 on , his retreat. It was also I Learn to save healing dollars! Have you long worried with old-fashioned heating? Have you keenly felt their lack of com .fort, paid their high fuel bills, endured their untidiness? If so, come and see us! A visit to any of our showrooms will tell you much you should know about economical heat-making, sure heat distribution, and labor-saving auto matic regulation which underlie the success of J:Bs j ills' I i L liiffifiill .X. - 3 JKIS TO.ffrbil I I1UM II VllIUIU MERICANx. 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BATTLE LINE IN FLANDERS AND FRANCE AS IT EXISTS TODAY. r-MN 0 )! if 'f 2f - y-f AMensrccn V w"- I " r" A X flwAs ftf : Jj itJ vfci t :: xZrJ NJ ' w ( v v y I ;: i(T ffZ" 'rpt tJrP "'-i iM :: wia4?1 wr r w J7 f JLJ&stsZ LJ '""x J 111 Or "O" v''J&rs (Vxfc sr- t I nrx --v wtet) r-v ejrcxMAv ryr S "S i 1 J 1.ITTL.E CHAXCE IS NOTED SIX CE LAST PREVIOUS PUBLICATION. TIDE HAS EBBED AND FLOWED IN NORTH. IN SOUTHEAST GER. t f MAN WEDGE HAS DRIVEN ITS ELF AS FAR AS ST. MIHIEL. I ELECTRIC WARSHIP AIM SIPEBDREADXOIUHT TO BE DRIVEN BY CALIFORNIA CURRENT. United States First to -Try Ont Idea and Future Naval Veanel: Be Similarly Equipped. May WASHINGTON. Nov. 13. The super dreadnought California, one of the three huge new ships just ordered, will be driven by electric motors. Secretary Daniels authorized this type of power plant for the big: fighter today on rec ommendation of Rear-Admiral Griffin, englneer-in-chief of the Navy. If it proves as great a success in the bat tleship as it has been in the naval col lier Jupiter, Navy officers foresee the complete displacement of direct steam drive In future American warships. The, California, which will be built at the New Tork Navy Yard, will be the first electrically-driven warship ever built, as the Jupiter was the first deep-sea vessel of any type to be fitted with motors. The decision to install the new system aboard the battleship was arrived at only after exhaustive study of the performance of the Jupi ter. As in the Jupiter, the main power plant of the California will be steam turbines driving dynamos which will generate electricity to give the ship at least a speed of 21 knots an hour. The Jupiter far exceeded her speed re quirements. Lost Baggage Being Recovered. WASHINGTON. Nov. 15 The State Department is preparing to aid Ameri cans who lost baggage in Germany or Austria at the beginning of the war. It was announced today that an effort would be made to recover and return baggage, if owners would mall receipts or other evidence of authority with de scriptions of the missing trunks, to American Consul-General Lay In Berlin through the Department. Injured Carlisle Player Rests. CHICAGO, Nov. 15. "Pete" Welsch. quarterback and former captain of the Carlisle Indian eleven, whose left cheekbone was fractured In the foot ball game with Notre Dame yesterday, had a restful day in a hospital today and physicians said his condition ap peared to be improving. In addition to the fractured cheekbone, there is a possible fracture of the base of the skull. SKIN TORMENTS CEASE WHEN P0SLAM IS USED Just think if Poslam could not do the things expected of it, each year would not bring it increasing sales and triumphs. Merit is the foundation of Poslam's success the ability to stop itching, soothe, control and eradicate) Eczema, and all other skin diseases. 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