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A. J. BALFOUR, _First Lord of the Admiralty.

July, 1916._

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_NOW ALSO THE AXE IS LAID UNTO THE ROOT OF THE TREE_

As the second year of the war drew to its close important gains were made by the Allied Armies on all fronts. On the Somme the British occupied Mameton Wood, Trones Wood, and the villages of Ovillers-la-Boiselle, Longueval, Podieres. The French advanced on a front of 10-1/2 miles and captured the German positions from Estrees to Vermando-Villers. On the Eastern Front, the Russians crossed the Carpathians in the south and pierced Hindenburg's Riga line at several points.

On the Isonzo the Italians began a great drive towards Gorizia.

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_THE SPIRIT OF FRANCE_

"_France is dying._"--_Hindenburg_

This year has been so full of a glory so pure that it will forever illumine the human race. It has been a year in which France, the France of Joan of Arc and Valmy, has risen, if possible, to even greater heights.

Be the war of short or long duration, France accepts it. The country is summoning its genius and changing its methods. Each French soldier before the enemy repeats the words of Joan of Arc, "You can enchain me, but you cannot enchain the fortunes of France."

PAUL DESCHANEL, _President of French Chamber of Deputies._

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"_BEFORE THE FALL_"

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