Late on Wednesday night came tardy news of the measures we were taking to mobilise.

The Aldershot Army Corps, so complete in the "Army List," consisted, as all the world knew, of three divisions, but of these only two existed, the other being found to be on paper. The division in question, located[86] at Bordon, was to be formed on mobilisation, and this measure was now being proceeded with. The train service was practically suspended, owing to the damage done to the various lines south of London by the enemy\'s emissaries. Several of these men had been detected, and, being in plain clothes, were promptly shot out of hand. However, their work had, unfortunately for us, been accomplished, and trains could only run as far as the destroyed bridges, so men on their way to join their respective corps were greatly delayed in consequence.

All was confusion at Bordon, where men were arriving in hundreds on foot and by the service of motor omnibuses, which the War Office had on the day before established between Charing Cross and Aldershot. Perspiring staff officers strove diligently, without much avail, to sort out into their respective units this ever-increasing mass of reservists.

There was perfect chaos.

Before the chief constituent parts of the division—that is to say, regiments who were stationed elsewhere—had arrived little could be done with the reservists. The regiments in question were in many cases stationed at considerable distance, and although they had received orders to start, were prevented from arriving owing to the universal interruptions of the railway traffic south. By this, whole valuable days were lost—days when at any hour the invaders might make a sudden swoop on London.

Reports were alarming and conflicting. Some said that the enemy meant to strike a blow upon the capital just as suddenly as they had landed, while others reassured the alarmists that the German plans were not yet complete, and that they had not sufficient stores to pursue the campaign.

Reservists, with starvation staring them in the face, went eagerly south to join their regiments, knowing that at least they would be fed with regularity; while, in addition, the true patriotic spirit of the Englishman had been roused against the aggressive Teuton, and everyone, officer and man, was eager to bear his part in driving the invader into the sea.

The public were held breathless. What would happen?

Arrivals at Aldershot, however, found the whole arrangements in such a complete muddle that Army[87] Service Corps men, who ought to have been at Woolwich, were presenting themselves for enrolment at Bordon, and infantry of the line were conducted into the camp of the Dragoons. The Motor Volunteer Corps were at this moment of very great use. The cars were filled with staff officers and other exalted officials, who were settling themselves in various offices, and passing out again to make necessary arrangements for dealing with such a large influx of men.

There were activity and excitement everywhere. Men were rapidly drawing their clothing, or as much of it as they could get, and civilians were quickly becoming soldiers on every hand. Officers of the Reserve were driving up in motor-cars and cabs, many of them with their old battered uniform cases, that had seen service in the field in distant parts of the globe. Men from the "Junior" and the "Senior" wrung each other\'s hands on returning to active duty with their old regiments, and at once settled down into the routine work they knew so well.

The rumour, however, had now got about that a position in the neighbourhood of Cambridge had been selected by the General Staff as being the most suitable theatre of action where an effective stand could, with any hope of success, be made. It was evident that the German tactics were to strike a swift and rapid blow at London. Indeed, nothing at present stood in their way except the gallant little garrison at Colchester, who had been so constantly driven back by the enemy\'s cavalry on attempting to make any reconnaissance, and who might be swept out of existence at any hour.

During Tuesday and Wednesday large gangs of workmen had been busy repairing the damaged lines. The first regiment complete for the field was the 2nd Battalion of the 5th Fusiliers, who carried upon their colours the names of a score of battles, ranging from Corunna and Badajoz, all through the Peninsula, Afghanistan, and Egypt, down to the Modder River. This regiment left by train for London on Tuesday evening, and was that same night followed by the 2nd Battalion King\'s Liverpool Regiment and the 1st King\'s Shropshire Light Infantry, while the Manchester Regiment got away soon after midnight.

These formed the second infantry brigade of the 1st[88] Division, and were commanded by Brigadier-General Sir John Money. They were several hours getting up to London, whence from Clapham Junction their trains circled London on to the Great Eastern system to Braintree, where the Horn Hotel was made the headquarters. By other trains in the small hours of the morning the last of the Guards Brigade under Colonel (temporary Brigadier-General) Lord Wansford departed, and duly arrived at Saffron Walden, to join their comrades on the line of defence.

The divisional troops were also on the move early on Wednesday. Six batteries of artillery and the field company of Royal Engineers left by road. There was a balloon section accompanying this, and searchlights, wireless instruments, and cables for field-telegraphy were carried in the waggons.

The 2nd Division, under Lieutenant-General Morgan, C.B., was also active. The 3rd Infantry Brigade, commanded by Major-General Fortescue, composed of 2nd Battalion Northamptonshire Regiment, the 2nd Bedfordshire, the 1st Princess of Wales\' Own, and the 1st Royal Welsh Fusiliers, were preparing, but had not yet moved. The 4th Infantry Brigade of the same division, consisting of the 3rd and 4th Battalions King\'s Royal Rifle Corps, the 2nd Sherwood Foresters, and the 2nd South Lancashire, with the usual smartness of those distinguished regiments, were quick and ready, now as ever, to go to the front. They were entrained to Baldock, slightly east of Hitchin, where they marched out on the Icknield Way. These were followed by Fortescue\'s Brigade, who were also bound for Baldock and the neighbourhood.

The bulk of the cavalry and field artillery of both divisions, together with the divisional troops, were compelled to set out by march-route from Aldershot for the line of defences. The single and all-sufficient reason of this delay in sending out the cavalry and artillery was owing to the totally inadequate accommodation on the railways for the transport of so many horses and guns. The troop-trains, which were of course, necessary to transport the infantry, were not forthcoming in sufficient numbers, this owing to the fact that at several points the lines to London were still interrupted.

The orders to the cavalry who went by march-route were to get up to the line proposed to be taken up by[89] the infantry as quickly as possible, and to operate in front of it to the east and north-east in screening and reconnoitring duties. The temporary deficiency of cavalry, who ought, of course, to have been the first to arrive at the scene, was made good as far as possible by the general employment of hordes of motor-cyclists, who scoured the country in large armed groups, in order to ascertain, if possible, the dispositions of the enemy. This they did, and very soon after their arrival reported the result of their investigations to the general officers commanding the 1st and 2nd Divisions.

Meanwhile both cavalry and artillery in great bodies, and strings of motor omnibuses filled with troops, were upon the white, dusty roads passing through Staines to Hounslow and Brentford, thence to London, St. Albans, en route to their respective divisions. Roughly, the distance was over fifty miles, therefore those marching were compelled to halt the night on the way, while those in the motor omnibuses got through to their destination.

The sight of British troops hurrying to the front swelled the hearts of the villagers and townsfolk with renewed patriotism, and everywhere, through the blazing, dusty day, the men were offered refreshment by even the poorest and humblest cottagers. In Bagshot, in Staines, and in Hounslow the people went frantic with excitement, as squadron after squadron rapidly passed along, with its guns, waggons, and ambulances rumbling noisily over the stones in the rear.

Following these came pontoon troops with their long grey waggons and mysterious-looking bridging apparatus, telegraph troops, balloon sections, supply columns, field bakery, and field hospitals, the last-named packed in waggons marked with the well-known red cross of the Geneva Convention.

No sooner was Aldershot denuded of its army corps, however, than battalions began to arrive from Portsmouth on their way north, while troops from the great camp on Salisbury Plain were rapidly being pushed to the front, which, roughly speaking, extended through Hitchin, Royston, to Saffron Walden, across to Braintree, and also the high ground commanding the valley of the Colne to Colchester.

The line chosen by the General Staff was the natural chain of hills which presented the first obstacle to the[90] enemy advancing on London from the wide plain stretching eastward beyond Cambridge to the sea.

If this could be held strongly, as was intended, by practically the whole of the British forces located in the South of England, including the Yeomanry, Militia, and Volunteers—who were now all massing in every direction—then the deadly peril threatening England might be averted.

But could it be held?

This was the appalling question on every one\'s tongue all over the country, for it now became generally known that upon this line of defence four complete and perfectly equipped German army corps were ready to advance at any moment, in addition to the right flank being exposed to the attack of the XIIth Saxon Corps, entrenched on the Essex coast.

It was estimated that no fewer than two hundred thousand Germans were already upon English soil!

The outlook grew blacker every hour.

London was in a state of absolute stagnation and chaos. In the City, business was now at an entire standstill. The credit system had received a fatal blow, and nobody wanted to buy securities. Had people kept level heads in the crisis there would have been a moratorium, but, as it was, a panic had been created that nothing could allay. Even Consols were now unsaleable. Some of the smaller banks were known to have failed, and traders and manufacturers all over the country had been ruined on account of credit, the foundation of all trade, having been swept away. Only persons of the highest financial standing could have dealt with the banks, even if they had remained open.

The opinion held in banking circles was that if the invasion should unfortunately prove disastrous to England, and Germany demand a huge indemnity, there was still hope, however small. The experience of the Franco-German war had proved that, though in such circumstances the Bank, for a considerable period, might not be able to resume cash payments, yet, with sound finance, there was no reason that the currency should greatly depreciate. During the period of suspension of cash payments by the Bank of France, the premium on gold never went above 1·5 per cent., and during most of the period was 5, 4, or even less per mille. Therefore what the French by sound banking had been able to do, there was no reason why English bankers could not also do.

[91]

WE, WILHELM,

GIVE NOTICE to the inhabitants of those provinces occupied by the German Imperial Army, that—

I MAKE WAR upon the soldiers, and not upon English citizens. Consequently, it is my wish to give the latter and their property entire security, and as long as they do not embark upon hostile enterprise against the German troops they have a right to my protection.

GENERALS COMMANDING the various corps in the various districts in England are ordered to place before the public the stringent measures which I have ordered to be adopted against towns, villages, and persons who act in contradiction to the usages of war. They are to regulate in the same manner all the operations necessary for the well-being of our troops, to fix the difference between the English and German rate of exchange, and to facilitate in every manner possible the individual transactions between our Army and the inhabitants of England.
WILHELM.

Given at Potsdam, September 4th, 1910.
The above is a copy of the German Imperial Decree, printed in English, which was posted by unknown German agents in London, and which appeared everywhere throughout East Anglia and in that portion of the Midlands held by the enemy. The above is a copy of the German Imperial Decree, printed in English, which was posted by unknown German agents in London, and which appeared everywhere throughout East Anglia and in that portion of the Midlands held by the enemy.

At[92] the outbreak of the war of 1870, on August 1, French Three per Cent. Rentes were at 60·85, and Four and a Half per Cent. at 98. On the memorable day of Sedan, September 2, they were at 50·80 and 88·50 respectively, and on January 2, 1871, Three per Cents. were down to 50·95. At the commencement of the Commune, on March 18, they were at 51·50 and 76·25, and on the 30th of that month down to 50·60 and 76·25 respectively.

With so little money in England as there now was, securities had fallen to the value at which holders would as soon not sell as sell at such a great discount. High rates and the heavy fall in the value of securities had brought business in every quarter all over London to a standstill. Firms all over the country were now hard put to in order to find the necessary money to carry on their various trades. Instantly after the report of the reverse at Sheffield, there was a wild rush to obtain gold, and securities dropped even a few more points.

Therefore there was little or nothing for the banks to do, and Lombard Street, Lothbury, and the other banking centres were closed, as though it had been Sunday or Bank Holiday. Despair was, alas! everywhere, and the streets presented strange scenes.

Most of the motor omnibuses had been taken off the road and pressed into the service of the military. The walls bore a dozen different broadsides and proclamations, which were read by the gaping, hungry crowds.

The Royal Standard was flying from St. Stephen\'s Tower, for Parliament had now met, and all members who were not abroad for their summer vacation had taken their places at the heated debates now hourly in progress. Over Buckingham Palace the Royal Standard also fle............