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The Canadian Government announced January 10th an issue of War Savings Certificates for small investors. The certificates are redeemable in three years by the Government at $25, $50 and $100 each. They can be obtained from any bank branch or postal money order office in Canada at $21.50, $43, $86. The interest rate works out at 5.3 per cent., and the issue promises a steady revenue for war purposes of many millions of dollars.

Hon. W. D. McPherson, K. C., M. L. A., has succeeded Hon. W. J. Hanna, resigned, as Provincial Secretary in the Ontario ministry. Prof. George C. Creelman has been appointed to the Cabinet without portfolio and Premier Hearst will direct the Department of Agriculture.

The citizens of Toronto have decided by a large majority in favor of municipal ownership of the Hydro-electric development plant. to be constructed at Queenston Heights.

In reply to the labor union opposition to the National service plan of the Canadian Government, Premier Borden is quoted as saying: "The proposal for National service is not connected with conscription, but rather the idea was to make an appeal for voluntary National service which would render unnecessary any resort to conscrip tion." However, he added, "If conscription should prove the only effective method to preserve the existence of the State, I should consider it necessary and should not hesitate to act accordingly."

The Duke of Connaught arriving unannounced at an exhibition of Canadian photographs at the Grafton Galleries, London, and being unrecognized by the Canadian soldier in charge of the door, was requested to pay his shilling. This his Royal Highness smilingly did.

A terrible tragedy marked the last day of the old year in the little French Canadian village of St. Ferdinand de Halifax, near Lake William, in Megantic County, Quebec. where forty-five idiot girls, inmates of a convent asylum, perished in a fire which destroyed that institution. One of the Sisters also perished in the attempt to save some of her unfortunate charges. The temperature was twenty degrees below zero and the village far away from any efficient fire brigade. Many escaped by jumping from windows into the snow.

A total of 178,537 men joined the Canadian forces in the year just closed, when, despite a strong scarcity of labor, the enlistments totaled nearly half of the entire Canadian enrollment. Since the outbreak of the war recruiting by districts has been as follows: Toronto, 5,384; Manitoba and Saskatchewan, 77,254; Kingston, 41,204; British Columbia, 37,757; Maritime Provinces. 34,802: Alberta, 34,517; Montreal, 33,993: London, 31,325; Quebec. 7,729.

Major the Rev. C. W. Gordon, "Ralph Connor," has returned to Canada on two months' leave, after eighteen months in England and at the battlefront in his capacity of Chaplain of the Forty-third Cameron Highlanders of Winnipeg. He will devote part of his time while at home to the National service campaign.

Hon. P. E. Blondin has succeeded as Postmaster-General the late Hon. Thomas Chase Casgrain, who died in Ottawa late in December in his sixty-fifth year. Mr. Casgrain was born in Detroit, Mich., and for many years had been one of the leading lawyers of Canada.

The Governors of Dalhousie University have offered the old college building to the Dominion Hospitals Commission, for use as a convalescent home for returned soldiers. during the war and for two years after the conclusion of peace. The medical classes now occupying the building will be accommodated elsewhere.

Since January 1st, Newfoundland and every province of Canada excepting Quebec is "dry." Quebec has refused to adopt "prohibition" measures, but is gradually closing out liquor by the vote of the people in various localities, until at the present time only sixteen per cent. of the whole province allows the sale of liquor. A new law places this sixteen per cent. under the Gothenburg system of Switzerland by which the "bottle trade" is completely wiped out and the bars go in favor of tables, the profits all going to municipalities which will have complete control of the trade.

Canada has undertaken to supply, largely from its own excess railway mileage, at least one thousand miles of rails and other track material for immediate use in France. The Dominion Government roads and the Grand Trunk, Canadian Northern and Canadian Pacific are all co-operating to meet the demand.

Canada's New Year's message to her Allies in arms expressed only the determination of the Canadian people to aid effectively in the war until the aims of the Entente Allies have been realized. "We fight," says Premier Borden, "not only to maintain the Empire; not only to protect small nations. but to enforce a proper regard for sacred treaties and to insure a lasting peace. Until that is achieved, Canada is at war with Ger many." "The long list of crimes against Germany must be punished before there can be any peace," declares the Toronto Globe. "Patched-up peace," asserts R. B. Bennett, National Director of Recruiting. "means defeat. Defeat means Canada as a rich prize for Germany." "The German power is crumbling," says the Herald-Telegraph. Montreal, "and the War Lords see defeat. Their peace offer is ridiculous."

British and Foreign

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Many institutions in Glasgow and West of Scotland have benefited largely through the allocation of the huge residue from the estate of the late Miss Schaw, of Glasgow. In addition to £100,000 to the Royal Infirmary intimated on New Year's Day, the Western Infirmary gets £60,000, the Victoria Infirmary £40,000, and five institutions each receive £10,000. Nearly seventy institutions share in the allocation. This first allocation disposes of fully £311,000, but the estate will exceed half a million sterling.

The Strath United Free Church has called the Rev. Ewen Fraser, Tarbet, as pastor. The minister-elect, who is a native of Stratherrick, was educated at Edinburgh University and New College. As a probationer he acted for some time with much acceptance as assistant to Rev. Murdo Mackenzie, Free North Church, Inverness. In 1903, he was ordained as minister of the United Free Church of Strathy, where he remained until his translation to Tarbat in 1912. He is a younger brother of Rev. Duncan Fraser, Dunvegan.

A diploma, commemorating the death of Lieutenant Raymond Asquith, has been presented to Mr. Asquith by the President of the French Republic, in the name of the French Government, through M. Camben, the French Ambassador in London. In acknowledging the presentation, Mr. Asquith wrote: "Will you be good enough to convey to your Government my most grateful and profund appreciation? He died willingly and gladly in our common cause, and, terrible as is the sacrifice to me, I could not wish for him or any of my children a worthier end."

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A privately printed memorial volume dedicated to George Buchanan Smith, the son of Principal Sir George Adam Smith, who fell in action on September 25, 1915, has been issued. On December 3, 1914, he left Aberdeen in command of a draft of 206 men for the 1st Battalion Gordon Highlanders. his first engagement he was wounded. platoon formed the left of a company that led an attack on September 25. The signal for advance was given at 6:30 a. m., and in less than five minutes afterwards he fell. One of his men says that he was the first over the parapet.

Admiral Sir David Beatty has sent the following reply to a message expressing appreciation of the work accomplished by the navy, sent on behalf of 30,000 Welsh miners producing Admiralty coal: "In the name of the Grand Fleet I thank the Rhondda Miners' Federation for their kind telegram, which we appreciate very greatly, and we feel we can depend on the mining community of South Wales to perform their important share in the great task with which the nation is now faced."

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CAPTAIN JOHN LAUDER, only son of Harry Lauder, whose death at the front announced in the January CALEDONIAN, as we were going to press. He died late in December, 1916, at the age of 23 years. Captain Lauder joined the Argyle and Sutherland Highlanders in January, 1913, as lieutenant. He studied law and music at Cambridge University, his intention being to qualify as a barrister and take a degree as doctor of music. He was twice wounded and returned to the front when he was killed in action. See CALEDONIAN. Novemi er number, 1914, and August, 1915).

The death roll in the railway wreck near Ratho Station, between Edinburgh and Glasgow, now amounts to twelve, and a number of persons are in a serious condition. The collision was terrific, but the train was lighted by electricity, and thus the carriages did not catch fire.

A peerage has been conferred upon Sir John A. Dewar, Bart., M. P. for Invernessshire. He is chairman of the Highlands and Islands Medical Service Board, and was created a Baronet in 1907. Sir John has represented Inverness-shire for sixteen years, and was previously Lord Provost of Perth.

Rev. M. M. Macleod, M.A., has been called to the Argyll Square Church, Oban. He is a native of the Island of Lewis and a preacher of great promise.

The Irish prisoners, who were interned in Wales after the recent rebellion in Ireland, were released in time to spend the holidays in their homes.

There are now 16,000 Belgian refugees in Scotland, and up to the present more than $1.000.000 has been contributed for their relief. Besides this, Glasgow and the west have subscribed an equally large amount for Belgians in Belgium.

Great Britain has done remarkable work in financing the war for herself and in aiding her allies. She is also giving splendidly to funds for relief or distress in her own and in other lands. At least $250,000,000 have been raised for such uses; about one hundred million dollars for direct relief and for preparing wounded soldiers for employments in civil life.

Professor Abercromby, of Liverpool, at a Housing Conference in Glasgow, calculated that they would need 600,000 new houses after the war and 100,000 of these would be located in Scotland.

General Sir Douglas Haig, Commander-inChief of the British forces in France and Belgium, has been made a Field Marshal. Other promotions include Sir Henry Seymour Rawlinson to be a General, and Major General Jan Christian Smuts, commanding the forces in East Africa, to be an Honorary Lieutenant General.

The total British casualties in December were: Officers. 815; men, 36,350. No lists were published during the holidays. These official losses reported in December bring up the total British casualties since the begin ning of the Somme offensive to 520,017.

Sergeant Flora Sandes, a British nurse. recently badly wounded by a Bulgarian hand grenade while on duty near Monastir, has been honored by the Prince Regent of Serbia with the gold and silver Cross of Karageorge for her bravery on the field of battle.

Notable recent deaths in Britain are: COL. LORD GEORGE BAILLIE-HAMILTON BINNING, at the East Lothian home of his father, Earl of Haddington, January 12, in his 61st year; WILLIAM FREND DEMORGAN. the novelist, January 15, in his 78th year; the EARL OF ELGIN (Victor Alexander Bruce), January 18. in his 69th year; RT. REV. ANTHONY MITCHELL, Lord Bishop of Aberdeen and Orkney, who visited America two years ago, in Aberdeen, January 18. in his 50th year; CAPTAIN F. C. SELOUS. D. S. O., the famous African hunter, who accompanied Colonel Roosevelt in 1909, in action in East Africa, January 6, in his 65th year; REGINALD JOHN SMITH. editor of the Cornhill Magazine, December 28, in his 59th year; and VICE ADMIRAL SIR GEORGE JOHN SCOTT, Warrender, January 8, in his 67th year.

Captain Ronald G. Maclaine (Lochbuie), Argyll and Sutherland Highlanders, who was lately mentioned in the Sirdar's dispatches from Egypt, has been promoted to the command of the 13th Soudanese, which regiment forms part of the West Frontier Force. Darfur El Kaimshan Maclaine Bey is to be congratulated on his promotion to the command of this crack Egyptian corps.

A baronetcy has been conferred upon John Stirling Ainsworth of Ardanaiseig, M.P. for the County of Argyll since 1903. Sir John is a son of the late Mr. Thomas Ainsworth of The Flosh, Cleator, Cumberland, and a grandson of the Rev. Dr. John Stirling, of Craigie, Ayrshire, a Moderator of the General Assembly of the Church of Scotland. He was educated at, University College School and University College, London. He was Sheriff of the County of Cumberland in 1891, and commanded the 3rd Volunteer Battalion Border Regiment from 1898 to 1902.

The Allies, in evacuating Rumania, it is officially announced, destroyed oil wells and oil property to the amount of $150,000,000. Vast stores of grain had previously been removed from Rumania, and what could not be removed was either destroyed or rendered unfit for human consumption.

The Bank of England opened its new war loan annex on January 12. The building will be entirely devoted to caring for war loan business. More than sixty different application forms have been provided for the new popular loan, which will be unlimited. All classes are responding eagerly. All the banks throughout the Kingdom and the Post Offices are distributing centers.

Earl Curzon of Kedleston, member of the British War Council and former Viceroy of India, and Mrs. Grace Elvina Duggan were quietly married in London, January 2nd. Lord Curzon's first wife, Miss Mary Victoria Leiter, of Chicago, died in 1906, leaving three daughters. Lord Curzon's bride is also of American birth, daughter of the late J. Munroe Hinds, and a native of Alabama.

More than 14,000 women are now employe as clerks on the railways of the United Kingdom. as against 1,100 women SO employed before the war.

The Salvation Army has contributed over 85,000 soldiers to the British forces.

Sir Albert H. Stanley, President of the Board of Trade in the Lloyd George Cabinet, who spent several years in the United States. associated in various railway enterprises, has been elected to the House of Commons for Ashton-under-Lyne without opposition.

British imports for the year just ended increased $486,295,000, chiefly in food and raw material, including $145,000,000 in cotton. Exports for the year increased $608,385,000, principally in manufactured articles, including a gain of $160,000,000 in cotton textiles.

A Manchester dye firm, formed in 1895 with a capital of $450,000, made a net profit of $400,000 in the year ended June 30, 1915. Owing to difficulties with the authorities over the excess profits tax, the 1915-16 accounts have not yet been published, but the ordinary shareholders have received thirty per cent. dividend in respect of the year's transactions. The $50 shares are quoted in Manchester at $375 each.

The Rev. Dr. G. Campbell Morgan announced early in January his intention to resign the pastorate of the Westminster Congregational Chapel, which he has held since 1904. His retirement is due to overwork. He has since accepted an invitation to occupy the pulpit of Collins-street Congregational Church, Melbourne, for twelve months.

The Commonwealth of Australia has announced a new war loan of approximately $90,000,000 on terms similar to those of previous loans.

More than a hundred persons were drowned in Clermont, Queensland, Australia, by a flood which washed away the main street and all the houses in low-lying places. The flood was caused by cyclonic weather in Northern and Central Queensland.

Seventeen accused persons in the supplementary trial held in connection with the conspiracy to foment a revolution in Lahore, were sentenced in Calcutta early in January. Six were sentenced to death, one was sentenced to transportation for life, and the others were sent to prison. The conspiracy was the work of German agents.

The Russian, Japanese, British and French Legations have indicated to the Foreign Office and the American Legation their desire for American co-operation 'n the reorganization loan of $50,000,000 to China.

Captain Gabriele d'Annunzio, the Italian poet, was awarded the French War Cross, January 14th. He also wore for the first time the insignia for the wounded, having lost an eye in an aeroplane accident early in February, 1916. A complimentary letter from General Lyautey, the French Minister of War, accompanied the War Cross.

In the year just ended, according to offcial figures recently published, 78,500 Germans were captured on the French front by the French and 40,800 by the British, while in Serbia and Macedonia the Allied armies took 11,173 Bulgarians and Turks. During the same period the Italians made prisoners 52,250 Austrians, while the Russians captured more than 400,000 Germans and Austrians. This gives the Allies a total of 583,000 prisoners for the year.

Since entering the war, Italy has taken 1,200 square miles of territory and more than 85,000 prisoners and has shortened her war front from 500 to 375 miles with an aggregate of 1,875 miles of intrenched lines.

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"will not talk peace with Germany until Right and Justice triumph."

December 26-The Central Empires reply to President Wilson's peace note in general terms, again urging a conference.

December 27-General von Mackensen defeats Russians and Rumanians in five days' battle on the river Rimnik.

December 28-British aviators destroy the great Chicalder Bridge on the Bagdad Railway, east of Adana, Asia Minor.

December 29-French beat off strong German attacks near Dead Man Hill, on the Verdun front.

December 30-King Charles and Queen Zita crowned in Budapest, Hungary. Entente Allies publish reply to the German peace note.

December 31-The year ends with the armies in a winter deadlock on the western front and the Teutonic armies advancing against heavy fighting in Rumania.

1917

January 1-British transport Ivernia torpedoed and sunk in the Mediterranean.

January 2-Turkey declares itself independent of European suzerainty, abrogating the treaties of 1856 and 1878.

January 3-Senator Lodge in a memorable speech postpones the immediate endorsement in the Senate of President Wilson's peace note.

January 4-British repel strong raids near Ypres and Vermelles.

January 5-General von Mackensen captures Rumanian city of Braila. United States Senate endorses in part President Wilson's peace note. January 6-Russians make important advances near Riga and in the Carpathians. British penetrate German lines near Arras and on the Ancre.

January 7-Allies conference in Rome ends. January 8-Russians near Lake Babit on Riga front take 800 Germans an 16 guns. Teutons capture Rumanian city Fokshani.

January 9-Prince Golitzine succeeds Trepoff as Premier of Russia.

January 10-British win a half-mile of trenches northeast of Kut-el-Amara, and take 150 prisoners at Beaumont-Hamel, on the Somme.

January 11-British capture six lines of trenches at Rafa, in the Sinai Peninsula, with 1,600 Turks, and advance further at Kut-el-Amara.

January 12-Reply of the Allies to Presi dent Wilson's peace note, dated January 10, published.

January 13-British, near BeaumontHamel take 200 Germans. The Kaiser denounces the Allies' reply to President Wil son's note.

January 14-Italians capture two Austrian U-boats. Japanese cruiser Tsukuba destroyed by an explosion in Yokohama harbor.

January 15-Heavy artillery fighting on the Somme front.

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January 16-Russians strike hard blow and retake Vadeni, near Galatz, in Rumania. January 17-Hon. Arthur J. Balfour, British Minister of Foreign Affairs, in a note, amplifies Allies' previous reply to President Wilson. First reports of the sinking of many ships by a new German raider reach America from Brazil.

January 18-King Constantine of Greece yields finally to the Allies' demands: frees Venizelist prisoners.

January 19-British continue to gain at Beaucourt. Germany announces that the British steamer Yarrowdale, supposedly sunk by German raider, has reached Germany with a prize crew of 16 and 469 prisoners from other ships.

a munition January 20-Explosion in works in East London, kills 69; seriously injures 72; and slightly injures 328. French repel German attacks in Alsace, near the Swiss border.

January 21-British raid German trenches and take many prisoners near Loos.

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January 22-President Wilson, in United States Senate, proposes a plan for a League of Peace.

January 23-British and German destroyers in two battles in the North Sea: each report the loss of one ship.

Warning Against False Peace

A petition against the peril of a false peace in Europe signed by more than seventy of the leading clergymen of the United States from all denominations and citizens of distinction, has been sent out. It recites in detail the crimes of the present war and calls attention to the fact that,

"When war drenches Europe in blood it is natural that we Americans should shudder at the sight. To call upon the combatants to stop the carnage is an impulse so strong that it even tends to displace judgment and distort values. We are ant to forget, at any rate for the time being, that there are conditions under which the mere stopping of warfare may bring a curse instead of a blessing. We need to be reminded that peace is the triumph of righteousness and To not the mere sheathing of the sword. clamor for an ending of the present war without insuring the vindication of truth, justice and honor is not to seek peace, but to sow disaster.

"Because it is easy to lose sight of these essential principles, we, the undersigned view with some concern the organized and deliberate effort now being made so to stam pede Christian sentiment as to creat a public opinion blindly favorable to stopping hostilities without adequate consideration of the issues which the war involves."

The Allies' Answer

The replies of the Allies' War Council in Rome to the German proposal for a peace conference and to President Wilson's "peace note" gave no uncertain sound as to their determination prosecute the victory.

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In answering the German proposal December 12th in a note dated December 30th, the Allies protested first against the two Prussian assumptions that the Allies were responsible for beginning the war and that the Central Powers are at the present time victorious. And further that "a mere suggestion without a statement of terms. that negotiations should be opened, is not an offer of peace. The putting forward by the Imperial Government of a sham proposal lacking all substance and precision would appear to be less an offer of peace than a It is founded on calculated war manoeuvre. misinterpretation of the character of the struggle in the past, the present, and the future." The proposal was designated as calculated to attempt to influence the future course of the war, to stiffen public opinion among the Teutonic allies, to intimidate neutral countries, and to attempt to justify before the world a new series of crimes against civilization. Special attention was called to the outrageous treatment of Belgium and a demand made for full penalties, reparation and guarantees. Until such time, no peace conference is possible.

The Allies' reply to President Wilson's note was sent through Ambassador Sharp in Paris, January 10th, and made public January 12th. In contrast to the German reply, which reached the United States a few days previously and was couched in the same general terms as their first peace proposal, the Allies reviewed in explicit language the purposes of the war and their terms of peace. They charge the responsibility of the war to the Central Powers, with some emphasis upon the Prussians. It describes the cruel actions of the arms of the Central Allies, states the object of the war from the Entente viewpoint, and states the terms of peace in a general way, as follows:

"The restoration of Belgium, of Serbia, and of Montenegro, and the indemnities which are due them.

"The evacuation of the invaded territories of France, of Russia and of Rumania, with just reparation.

"The reorganization of Europe guaranteed by a stable regime and founded as much of nationalities, and full upon respect security and liberty of economic development, which all nations, great or small, possess, as upon territorial conventions and international agreements suitable to guarantee territorial and maritime frontiers against unjustified attacks.

"The restitution of provinces or territories wrested in the past from the Allies by force or against the will of their populations.

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