NEWS OF THE WEEK

.AFFAIRS in China have advanced this week to an im. portant degree. As our readers are aware, the Govern- ment have decided to make no territorial acquisitions in China, but to insist that trade with that country shall remain open to the world. They have now authorised Sir Michael Hicks-Beach to state that this resolution has been adopted in the fullest sense, and, if necessary, "at the cost of war." Those words were employed by the Chancellor of the Exchequer in a speech delivered on Monday to the Chamber of Commerce .at Swansea, and they have since been repeated in all but form by Mr. Chamberlain and Mr. Long, the latter of whom would not have ventured so far without an absolute certainty of his colleagues' adhesion. Lord Kimberley, as we mentioned last week, has entirely endorsed the Government's plan ; and Mr. Asquith and Sir Henry Campbell-Bannerman since the warlike speech was made have entirely approved, and promised to support, its policy. The Press, so far as we have studied it, is quite unanimous on the same side ; and though the democracy is slow to express itself, no one doubts its hearty sympathy with this course. That creates a very grave situa- tion, as the Continent, though acquiescent, is not pleased ; but, as we have argued elsewhere, the Government is in the right. Freedom of commerce with China, for the whole -world, is a justifiable, and a sufficient, cause for war.

The Times' correspondent at Pekin forwards an account of the negotiations going on there, which our contemporary maintains to be accurate, though the officials declare it to be imperfect and erroneous. According to this account, Great Britain is willing to advance £12,000,004) sterling to China at 4 per cent., of which 1 per cent. will be funded for the extinction of the Debt. China in return for this great accommodation is asked to add three new ports to the treaty list, of which Talienwan is to be one ; to give certain " securities," which will include, we fancy, the appointment of an English Chief of the Customs in succession to Sir Robert Hart; and to pledge herself that she will not cede any portion of the valley of the Yangtee without British consent. As 'Talienwan stands close to Port Arthur, this clause would pre- vent China from shutting us out of Manchuria, and is fiercely -resisted at St. Petersburg, where they expect French assist- ance, and possibly that of Germany. On our side would be Japan, and under certain circumstances the United States,

where the people of the Pacific slope and the manufacturers are deeply interested in the freedom of Chinese trade. The clause about the Yangtse is meant as a provision that if China is ever conquered our share should be the valley of that river, the richest and most populous third of China. The Yangtse has a course of three thousand miles, of which fifteen hundred are navigable, and runs into Yunnan, almost to the confines of our own Burmese territory. A railway from Burmah into Yunnan is also one of the conditions.

The Tsungli Yamen, which wants the money sadly, and cannot obtain it elsewhere upon such terms—the financiers distrusting all supervision but the English—is content with the conditions, but rather afraid of Russian opposition. London and St. Petersburg are therefore fighting in Pekin, which threatens to become as much a battleground of diplomacy as Constantinople. No one appears to know to which side the Council will incline; but as the Siberian Railway is not built, and the Japanese will be strongly on our side in order to get their money, it is possible that, although we pay no commissions, we may succeed. Russia is applying to Germany and France for assistance in lending the money, but cannot obtain it at 4 per cent., or anything like it, 6 per cent, being openly spoken of. In the event of the negotiations falling through, the British Government will fall back upon existing treaties, and will insist upon their remaining in force. A certain irritation manifest in the Foreign Office at the disclosure of these facts is probably due to the increased difficulty which their revelation causes in coming to an arrangement with Russia, whose occupation of Port Arthur, it will be observed, is not interfered with.

A correspondent of the Daily News, who seems well in- formed, is now added to the list of those who endorse our suggestion as to the secret of the Dreyfus affair. He affirms, as we supposed, that the secret papers were sold to Russia, not directly by Dreyfus, but by a mistress whom he allowed to steal them. The Government is still so afraid of stating this central fact, that it proposes to try, and condemn, M. Zola in secret, and so redouble the hubbub, which is already dangerous. The Jews have been menaced or attacked in Paris—where a panic exists among them—in Marseilles—where there is ground for a panic—in Lyons, Nantes, Bordeaux, and Nancy. Though the Socialists, in a manifesto published on Sunday, repudiate that view, the masses, apparently, look on the whole business as aquarrel between the "cosmopolitan caste which exploits France" and the Army; and it is by no means certain that the Army itself does not hate the Jews. The Chamber itself wants to prosecute the "Dreyfus Syndicate," and on Monday the Government was only able to postpone a discussion on that proposal by the abstention of the Right. The debate will be renewed to-day, and there may be violent scenes. France is just in that condition of suspicion and " electricity " in which anything may happen.

The Times' correspondent at Vienna, a really careful observer, takes a pessimist view of the race conflict in the Cisleithan State. The Germans in the Bohemian Diet are more uncompromising, and the Czechs more furious, than in the Cisleithan Parliament, and in Prague every German moves about with precaution, fearing personal attack. The more impatient Germans have completely mastered the moderates, and demand nothing less than the repeal of the Order establishing equality between the lan- guages. The Slays will not bear that, and it is believed that when in a week or two the Reichsrath meets again, there will be another deadlock produced by repeated scenes of violence. Under these circumstances, there is nothing to be hoped for except the Emperor's intervention, and that means absolutism for a time. We suspect there is a strong party

among both the factions who would welcome that solution, but it could not be a final one.

Mr. Hitt, the Chairman of the Foreign Committee in the House of Representatives, a personal intimate of President McKinley, and a man of gravity and repute, made on Wednesday a speech to the Representatives, which suggests that American intervention in Cuba is very near at band. The grant of autonomy is distrusted, the Fleet is clearly being concentrated in Southern waters, and there is evidently a suspicion in Washington that the party in Havana which is furious at the loss of its ascendency in the island may attack American residents. We strongly suspect, too, that the officers in the island, if not the soldiery, agree with General Weyler that Washington has insulted the Army, and are prepared, out of temper and a sense of wounded honour, to risk war with the United States. Anyhow, telegrams from Washington are becoming gloomy, while the Herald, which is now the advocate of non-intervention, strives diligently to show that America is powerless to go to war. That is not an argument which will soothe that terrible Western democracy, which regards Spaniards as "Greasers," and on its Mexican experience would attack them at any odds either by sea or land.

The accounts from the Indian Frontier are always better, the Zakka-khels, a sub-clan of the Afridis, being now the only tribe that keeps on the war, and even they offering to treat. The story of the Plague in Bombay continues, how- ever, to be horrible, the death-rate having risen in the past week to 95.29 per 1,000—say three times what it ought to be—and the population continuing to fly from the island. The little trouble in Mekran, too, is spreading, the local brigands having joined the local insurgents, and both having proclaimed that they are Ghazees, soldiers of the Faith. They will be crushed, we fancy, easily enough as soon as we can get at them, but the difficulties in procuring water, food and transport are very considerable. We seem wholly unable to settle that question of draught animals, apparently because we will not train a permanent corps of drivers, and teach them how to get the best out of their beasts and yet preserve them. If a Member were to call for an emergent return of the number of animals which have perished in the Frontier War the House of Commons would be astounded.

The news from Uganda which is now arriving in England is most serious. It appears that the mutiny of the Soudanese troops who were to have accompanied Major Macdonald's expedition has led to events of the gravest character, and almost the whole of Uganda may now be said to be in a condition of anarchy. After the mutineers left Major Macdonald they went to a place at the northern end of Lake Victoria, and there seized a fort which had just been occupied by Major Thruston, who had heard of the mutiny and was endeavouring to stop their entry into Uganda. Major Thruston, Mr. Wilson, and Mr. Scott, the engineer of the Government launch, were thus made prisoners. Major Macdonald, who had pursued the mutineers, soon after arrived at the fort and attacked it, with the terrible result that the fort was not taken, and that the prisoners were all three murdered. As to what amount of blame, if any, attaches to Major Macdonald, we cannot, of course, say till fuller news arrives as to details, but unfortunately the main facts are only too clear. A body of soldiers, the Soudanese Uganda Rifles, which has hitherto been the mainstay of our rule in Uganda, has ceased to exist, or rather has become a dangerous mob of mutineers. Uganda is in a state of anarchy, and great fears are entertained as to the fate of the missionaries and other Europeans in isolated posts. There is, finally, consider- able danger of another civil war being started by the King's party, and Major Macdonald's expedition, upon which so much depended, has been virtually destroyed. In view of the serious nature of the incident, we trust that the Government will consider the advisability of sending out some officer of experience to put matters straight in Uganda. Would it not be possible to use Major Lugard's services for this purpose ? He knows the country thoroughly, he has a great influence over the Soudanese, who were originally enlisted by him, and he has a happy faculty for getting things done,—witness his action in West Africa, as well as originally in Uganda.

On Thursday Lord Wolseley at the annual dinner of the

North London Rifle Club declared that the Army was not in the condition which many people wished them to believe What was the matter with the Army was the fact that we were struggling to fill the quart pot of the Army abroad out of the pint pot of the Army at home. After this declaration it was a little astonishing to find Lord Wolseley making the following statement :—" He would tell them as a positive fact, upon which he would stake his honour, that if the Government decided to go to war and to send an army abroad, we could put on board ship at the quays on the sea-coast of England and at our ports, two full army corps, complete down to the very last possible stores that would be required—com- plete in every possible way—and that could be done some considerable time before the Navy could have the necessary ships to carry them from those shores." One is always a little alarmed by statements of ready-to-the-last-button order, but at the same time the Commander-in-Chief is quite right not to make "a poor month" about the troops, and we quite agree when he says that whatever else broke down on the Indian Frontier, it was not the British soldier. We also are entirely at one with him when he asserts that recruiting is a question of wages. We have never believed in the declara- tions that higher pay would not get the men required.

At Liverpool on Tuesday Mr. Chamberlain, who was enter tamed at a banquet by the Chamber of Commerce, declared that if it were possible, it would be desirable to stop further acquisi. tions of territory. We have got enough land and barbaroua peoples to govern ; but if we are to hold our own we must follow the lead of other Powers, and see that we are not shut out from the probabilities, and indeed the certainties, of the future. We cannot afford to neglect places because they. now seem deserts. Fifty years ago an official sent to Australia declared it to be absolutely hopeless for European settle. ment, and that it might as well be given up. The House of Commons said the same thing of the West Coast of Africa thirty years ago. That is a perfectly sound and statesman- like view. No wise man will ever predict offhand that any piece of the world is worthless. Did not Louis XIV. call Canada a few arpents of snow ? We have dealt elsewhere with Mr. Chamberlain's statement as to the West Indies and the Sugar question, and will only note here how entirely satisfactory is the zeal with which the present Colonial Secretary throws himself into all questions concerned with the welfare of the Colonies. Though we may not always agree with him in details, we realise how excellent a thing it is that the Colonies should feel that the Colonial Minister is their representative, and gives weight and importance to their views, instead of being, as he used to be, merely their controller.

It would be difficult to imagine a more effective fighting speech than the address by Mr. Chamberlain to the Liverpool Constitutional Association delivered in the Philharmonic Hall on Wednesday last. He showed what would be the results of the new Radical policy as set forth by the National Liberal Federation at Derby. Their proposals for electoral reform consist of eleven separate constitutional changes, including female suffrage. Suppose, however, that they could put them into one Bill, and pass it through the Commons, the House of Lords would certainly demand that such changes should be submitted to the people. That would be the first Dissolution. Assume that they won at that Dissolution, and that the Bill was carried into law, the next step must be another Dissolution, for you cannot enfranchise seven million new electors and not allow them to exercise their privileges. Agreed that they won that election also. The House of Lords would then have to be abolished, or rather its control over legislation, for the Peerage is to be kept as a reward for wealthy Radicals. But the Lords would not yield without a struggle, which would necessitate yet another Dissolution. Thus, counting the Dissolution of the present Parliament, which must, of course, take place before the Home-rule party can get into power, there would have to be four General Elections before the party could set to work on the Derby Programme. That is, in reality, no burlesque of the Derby proposals, and will, we trust, help to bring home to the country the astounding levity and ineptitude with which the Home-rule party fixes on its policy. We cannot find space to deal with all the points in Mr. Chamberlain's speech, but we must note his very telling criticism of Lord Spencer's statement that when the time came the right man would be found to lead the

Liberal party,—" Such and such gentlemen of great influence 'will join the Board after allotment.'" At Bristol on Wednesday the Chancellor of the Ex- chequer declared that, if need be, the Navy could sweep the seas of our enemies, and he was convinced that in any war we should have many friends who would be ready to send plenty of corn here. We were improving the Navy every year, and in the coming Estimates provision would be made for our greatest want,—more sailors. The First Lord, too, had got his eye on the building pro- grammes of other Powers, and if anything occurred to alter the balance of naval power, we should take care to keep something more than pace with the additions they made. As to the Army, they would find the Government prepared, not merely with proposals for increased expenditure, but for real and tangible improvements both in the organisation of the Army and the conditions of our soldiers. The proposals would be adequate for the interests of the country. This is most excellent hearing, for it appears to indicate that Sir Michael Hicks. Beach is going to give personal attention in the Commons to the Army problem. The financial prospects of the Indian Government had so much improved that they -could not now need money help from us. If India really wanted help our purse must be opened to her, but nothing could be more unsatisfactory than letting the Indian Government spend our money. They must not be relieved of a responsi- bility they ought to bear themselves. That is an absolutely incontrovertible proposition. The Revenue was very good and there would be a large surplus, but there were signs of a change. The second part of the year was not nearly so good as the first part. Besides, the Navy—owing to the strike— had not spent a million and a half of the money allotted to it. This would mean an extra drain in future years. In the case of China, they must not believe all the papers said, but the Chinese had approached us as to a loan, and we were con- sidering the application. The Government were not ashamed of these negotiations, and saw no reason why they should be -disapproved of by any other Power. The willingness expressed to spend on the fighting services was very remarkable in a speech from so careful a financier. If the foreign Powers think that this Government is squeezable on any vital matter they are utterly mistaken.

The Times' correspondent in the Soudan telegraphs from Suakin to Thursday's paper a most graphic account of his ride to that place from Kassala in company with Captain M'Kerrell, one of the ablest and most responsible of the younger officers in the Egyptian Army. The country passed through, instead of being desert, is of considerable fertility, though it is practically uninhabited. Water was found nearly everywhere by digging a few feet, and sometimes even inches. The soil was rich ; but it was not till the neighbourhood of Tokar was reached, and there was no longer any dread of the Dervishes, that cultivation began. The Times' correspondent declares that the route from Suakin to Kassala would be much preferable for railway purposes to that from Suakin to Berber. If the difficulty connected with the torrents could be got over we can readily believe this, and doubtless to reach the Nile vici Kassala and above the Sixth Cataract would be a great advantage. It would tap the Soudan trade higher up, and also give easy access to the Abyssinian markets.

In his speech of Monday to the Swansea Chamber of Com- merce the Chancellor of the Exchequer, who really knows his business, gave a cheering account of trade. He believed that we underrated the importance of the volume of trade, which was now enormous, as compared with its values, and only dreaded a reduction of markets, which must be met in some cases by an otherwise regrettable territorial expansion. We could not put down slavery, and so change the whole con- ditions of labour over vast regions, without ruling them,—a most pregnant remark. He did not see that legislation could do much, except by reforming Company law. He wanted public opinion to hurry that reform, and so prevent a bank- rupt from making his wife and children into a company, and then unloading worthless debentures upon the public. Sir Michael suggested ways of preventing this ; but suppose, as he is not afraid of saying rough things, he compelled his col- leagues not to " incubate " any longer, but to hatch their Bill. The House of Commons will not oppose him—why should it P—and the middle classes will bless his energy. At present that class is robbed every day by villains who deserve penal servitude, but cannot under the existing law be prosecuted. Somebody—is it the chief draughtsman or Lord Halabury P —wants to be well stirred up.

Town has been greatly interested this week by the decision in the "Sykes case." A moneylender sued Sir Tatton Sykes, the racing Baronet, who is lord of the Yorkshire Wolds, for payment of certain bills which he, as alleged, had signed. The money for the bills, some 213,000 or 214,000, had been paid to Lady Sykes, who was a daughter of the late Mr. Caven- dish Bentinck. Lady Sykes appeared in Court, and swore that her husband, whom she represented as a feeble-minded man of excessively penurious habits, had signed the bills in her presence, thus agreeing to pay 60 per cent. for accommoda- tion which he could have obtained from his own bankers for 4 per cent. Sir Tatton Sykes, who, whether penurious or not, presents church after church to the parishes on his estate, swore, on the other hand, that he had not signed the bills, and though the experts differed as usual, his own banker testified that he should not have paid cheques on the signatures submitted. The jury believed Sir Tatton, thus declaring implicitly that the signatures were unreal, and the bills thus made valueless were impounded. There is talk, of course, of the necessity of prosecuting Lady Sykes, but as her guilt, if she was guilty, depends on her own testimony and her husband's, and neither could give evidence in a criminal trial, there is little probability of any further pro- ceedings. The scene revealed is a sad and bad one, but as we have argued elsewhere, it does not by itself prove that society is going to pieces.

Mr. Charles Villiers, the last of the Anti-Corn-law leaders, died last Sunday at his house in Cadogan Place, the cause of his death being a cold caught after the excitement caused by the keeping of his ninety-sixth birthday on Januard 3rd. Mr. Villiers was not a man of great or exceptional intellectual powers, nor had he the statesman's gift in any high degree, but he was a man of good sense coupled with singular courage and independence. A young man of the landlord class wanted something more than ordinary pluck when he stood up and denounced the Corn-laws, which in the "twenties," "thirties," and " forties " were honestly believed to be absolutely necessary to the national salvation. Mr. Villiers's career in Parliament is a standing proof that the democracy is not always forgetful or ungrateful. He was first elected for Wolverhampton in 1834, and for sixty- three years he retained his seat, in spite of the great altera- tions in the borough and the melting of parties. Though he had not appeared publicly in the constituency for nearly a quarter of a century, the electors were proud of their Member, and stuck to him with absolute loyalty. Mr. Villiers's death causes a vacancy in what is practically a new constituency, South Wolverhampton never having been contested since its creation in 1885.

The public will hear with pleasure that the Treasury have agreed to bear the expense of casting in bronze the colossal equestrian statue representing "Energy" or " Force " upon which Mr. Watts has been at work for so many years. All per- sons capable of appreciating noble statuary who have seen the statue agree that it is a work of art worthy in every way of Mr. Watts's fame. As Mr. Watts has given this splendid statue to the nation, it is most proper that it should be cast in bronze at the expense of the State. Mr. Watts's generosity in bestowing his great collection of pictures on the nation makes, too, the action of the Treasury an appro- priate recognition of a public service. But in truth there is no need to find an excuse for the expenditure since it will secure to London a great and memorable piece of statuary. An excellent site has been found, the Times states, in Hyde Park, "in the centre of the terrace at the foot of the Serpentine." We trust the Treasury followed the example of the Republic of Florence, who, when they placed a statue in their city, asked the sculptor himself to choose the site.

Bank Rate, 3 per cent.

New Consols (21) were on Friday, 1121.