Next day, however (Aug. 1), the situation became worse. German troops were preparing to invade France; Russia had proclaimed a general mobilisation; martial law was consequently proclaimed in Germany; in Great Britain steps were taken to guard magazines, railway bridges and tunnels, and dockyards; the booms defending British naval ports were placed in position; and telegrams from the Dominions exhibited their eagerness to aid the mother country by sending troops. In London, the Stock Exchange, an hour after its opening, was closed _sine die_; business was active at Lloyd's in insurances against war risks; the Cabinet met in the morning, and the Prime Minister in the afternoon was received by the King. Ministers cancelled their week-end engagements, and, just before the House rose, the Prime Minister stated that the news from Germany indicated that she would follow Russia in mobilisation. Next day the bank rate was advanced to 10 per cent.--its highest point since the Overend-Gurney crisis in May, 1866; the Cabinet met twice, and a conference was held between some of its members, including the Chancellor of the Exchequer, on the financial situation; and the King, as a last effort to preserve peace, sent a direct personal telegram to the Tsar, offering mediation, which arrived, however, after Germany had declared war on Russia.
Unwonted and varied excitement characterised Sunday, August 2. Throughout the country prayers for the preservation of peace were offered in the churches, in accordance with a suggestion made some days earlier by the Archbishops, and also in Nonconformist places of worship. In Trafalgar Square a "war protest meeting" organised by Mr. Hyndman, Mr. Ben Tillett, Mr. Keir Hardie, Mr. Barnes, M.P., and other prominent representatives of Socialism or Labour, passed a resolution calling on the Government to take every step to secure peace, and on the workers of the world to use their industrial and political power to avert war; but it was interrupted by a large dissentient element, which, however, ultimately seceded peacefully and held a "patriotic" meeting at the Admiralty Arch. During the day the Cabinet met twice, and frequent informal conferences were held between Ministers; and it was stated that the divisions of opinion previously existing among them disappeared in the course of the day almost entirely. The King held a Council at 4.30 P.M., and it was announced, first, that the Government had taken control of all wireless telegraphy, next that a "moratorium" of a month was established for certain bills of exchange; and the Admiralty called out the Naval Reserves, including naval and marine pensioners under the age of fifty-five, and the Royal Volunteer Reserve. On the announcement of this last step, through the medium of special late Sunday editions of various newspapers, a crowd of some 6,000 people marched up the Mall to Buckingham Palace, where it sang the national anthems of Great Britain and France. The King and Queen were called for, and came out to acknowledge the greetings of their enthusiastic subjects.