|My dear Grey: -
The feeling here is that peace between the Powers depends on England; that if she declare herself solidaire with France and Russia there will not be war for Germany will not face the danger to her of her supplies by sea being cut off by the British Fleet at a time when she could not get them from Russia and France and little from Austria who would require all that is available from elsewhere for her own needs.
People do not realize or do not take into ...
account the difficulty for the British Government to declare England solidaire with Russia and France in a question such as the Austro-Servian quarrel. The French instead of putting pressure on the Russian Government to moderate their zeal expect us to give the Germans to understand that we mean fighting if war break out. If we gave an assurance of armed assistance to France and Russia now, Russia would become more exacting and France would follow in her wake.
Travelling to and from "les Eaux" in the East of France is becoming difficult owing to the moving of troops from the centre of France towards the Eastern frontier and "les Eaux" generally are being ...
deserted even those in the West of France.
The newspapers but not yet the people are becoming bellicose. The Bourse is practically closed and the Bank of France is preparing to issue notes for 20 francs 10 francs and 5 francs, meanwhile strings of people are asking for change for notes of 50 frs and 100 francs &c, end, the Bank employés make as much delay as possible in fulfilling the Banks' obligation to give coin whether gold or silver in exchange for its notes.