ording to my indications,
the Bills necessitated by a time of war.--_Reuter._

RUSSIA'S DEFENSIVE PLAN

_A dispatch to the London Daily Chronicle from Petrograd on July 6
said:_

The Russian defense is now a two-fold and rather complex process.
Along the frontiers the army is parrying blows of the enemy and
wearing him down, avoiding big battles, losing territory indeed,
little by little, but gaining time and husbanding resources.

The other side of the process is the rally of the nation to the
support of the army. It would be wholly wrong to regard the gradual
advance of the Germans and Austrians in Russian territory as evidence
that Russian resistance is breaking down. On the contrary the nation
has never been so thoroughly aroused as now.

The broad back of the Russian soldier has done marvels in sustaining
the heavy burden of war, but when retreat in Galicia began it suddenly
flashed on the nation that this was not enough--valor must be
reinforced by technique. The attitude of the nation to the war
immediately changed. Formerly it was a spectator watching with eager
hope mingled with anxiety the deeds of the army that was part of its
very self. Now it has become an active reserve of the army and in
securing liberty to act it has gained in moral force.

The Cabinet is being strengthened, more effective contact is being
established between the Government and the nation, and the War Office
is now the centre of popular interest.

Russia has not yet followed the example of her allies in appointing a
Minister of Munitions, but the course of events is tending in this
direction and the new War Minister, General Polivanoff, commands the
confidence of the Duma and nation generally. The War Office has become
the focus of the new national organizing movement of which all
existing public bodies are being made the nucleus.

FIGHTING ON TWO RIVERS

_The statement issued by the German Army Headquarters Staff in Berlin
on June 30 reported:_

Between the Bug and the Vistula Rivers the German and Austro-Hungarian
troops have reached the districts of Belz, Komanow and Zamosc and the
northern border of the forest-plantations in the Tanew section. Also
on a line formed by the banks of the Vistula and in the district of
Zawichost, to the east of Zarow, the enemy has commenced a retreat.

An enemy aeroplane was forced to descend behind our lines. The
occupants of the machine were made prisoners.

_On July 1 the situatio