NEWS OF THE WEEK.

THE demands made by Germany upon Pekin as satisfaction for the murder of two Catholic missionaries in Shantung are of an unexpectedly " drastic " character. According to a telegram forwarded by Renter from the capital, and obviously derived from official sources, the German Ambassador demands a payment of £40000, the erection of a Catholic cathedral (presumably in Pekin), the right to occupy Kiao-chow in perpetuity as a coaling-station, payment of the expenses of landing in Kiao-chow, the degradation of the Governor of Shantung, and finally a railway monopoly in that large and important peninsula. It is difficult to believe that these terms, especially the last named, which is without pre:edent, and is in fact monstrous, are not intended to elicit a refusal, and so provoke a small war, during which the German Parliament would be compelled to vote a great increase to the Fleet. More cruisers are, indeed, to be sent to China, and Prince Henry, the second person in the Empire, has been appointed to the command. The Chinese Government, on their side, after sentencing the General who surrendered Kiao-chow to death—a mere hint, for he is a prisoner in German hands— meet all these demands by assurances that they are friendly, and that they have the requests under careful consideration. It is by no means certain that they will yield, though it is quite certain that they will not fight. The attitude of the Powers is unknown, but there are said to be signs of irrita- tion both in France and Russia, where there is also talk of asking " compensations " from China, which is treated by everybody as corpus vile.

The German Emperor opened the Reichstag on Tuesday, in a speech the first sentences of which contain a strong appeal for the development of the Fleet. The present Fleet is declared to be unable to guard the coasts of Germany and prevent blockades, while it is inadequate to provide for Germans abroad that degree of protection "which can only be secured by the display of power." Germany does not "wish to rival naval Powers of the first rank ;" but she must be put in a "position to maintain her prestige among the nations of the earth by her naval armament as well as otherwise." It is "imperative that the strength of the Navy and the period of time within which this strength is to be attained should be fixed by legislation." A Bill is, therefore, to be introduced which will fix the number of vessels to be attained within the next seven years, and settle the sum,—twenty-one millions is suggested,—which must be spent on them within that period. This portion of the speech was received in silence, but a further paragraph announcing that to avenge a murder of missionaries troops had been landed in Kiao-chow Bay excited some enthusiasm.

When the speech had been finished, the Emperor, to the surprise of his audience, stepped forward, and in a loud voice pronounced an epilogue. His Majesty recalled the vow he had taken two years ago to defend what the great Emperor had created, and asked for aid to keep his vow.

Before the face of Almighty God, and remembering the great Kaiser, I ask you by your assistance to enable me to remain in a position to keep this oath of mine, and I ask you to support me in powerfully upholding the honour of the Empire abroad, for the maintenance of which I have not hesitated to stake my only brother." The last sentence is perhaps a little too suggestive to Englishmen and Americans of Artemus Ward's joke about his determination to save the Union even if it cost him all his wife's able-bodied relations," but it he probable that the Emperor spoke with genuine feeling. He may expect actual hostilities, he is attached to his brother, and he considers that until his own children are grown up the life of his brother, who would be Regent, is a guarantee for the dynasty.

The Dreyfus affair still continues to be the single topic ia Paris. No new evidence has come out, and no new step has been taken; but the course which the authorities, military as well as civil, have resolved to take begins to be clear. They will insist that Captain Dreyfus was fairly tried, and was found guilty upon evidence which, if it were published, would be acknowledged by everybody to be conclusive, but which for reasons of State they must still refuse to make known. This course, it is understood, will be approved by the populace, who are convinced that secrets were revealed by the accused, and that he is being sheltered by a Jew syndicate, who, through their power of capital, are endeavouring to master and to ruin France. No one ventures to explain the central puzzle, the reason for secrecy, which weighs so heavily upon men who have urgent motives for proclaiming the whole truth. It appears impossible that the German Govern- ment could declare war because it was accused of bribing a subordinate in the French War Office, and equally impossible that the revelation could constitute a personal insult to the German Emperor. A theory has therefore been started that the secret, if revealed, would irritate the French Army against the Republic, and would thus bring about a revolu- tion; but of evidence for such a supposition we can see no trace. It must be added, as a further complication, that General Pellieux, who is conducting the military inquiry, declares Major Esterhazy guiltless of treachery, though probably guilty of sending to a cousin the mad letters in which he prays that Germany may conquer France.

The troubles in Austria are becoming worse. On Satur- day the Reichsrath found it impossible to proceed to busi- ness, and on Sunday disturbances of a serious character were reported from all parts of the Cisleithan State, while Vienna was so nearly in insurrection that it was necessary to call out troops to protect the Palace. The Emperor, therefore, being hastily recalled, privately suggested and publicly accepted the resignation of the Badeni Ministry. The sittings of Parliament were suspended, a report was spread that the legality of the ordinance equalising the languages would be left to the High Court, and Baron Gents& was appointed Premier. This gentleman is a German of high Conserva- tive opinions, greatly trusted by the Emperor, and he im- mediately formed a Ministry of Affairs consisting wholly of Under-Secretaries, and decided before any further action was taken to allow the excitement to subside. It did sub- side a little among the Germans, but they are still resolute to allow no business to proceed until the obnoxious ordinance is repealed, until the Parliament has abolished the new rules of procedure allowing Members to be expelled, and until it is admitted that neither police nor soldiers have a right to arrest disorderly Members within the precincts of the House. These resolves are the more serious because the Ausgleich with Hungary is rapidly running out, and if it is not renewed in time must be continued by an Imperial decree,

• which a strong party in Hungary declares to be invalid.

As might have been expected, the concession made to the Germans has irritated the Slays to fury. Disturbances broke out in Prague on Monday, and were renewed on Tuesday, the Czech mob wrecking the houses of two prominent and wealthy German nobles, plundering German shops, and beating persons in the streets for speaking German. The police, and even the soldiers, were defied, and organised attacks were made upon the synagogues, not because the Jews are Germans, but because they are hated. In one suburb the troops were compelled to fire, killing a number, as yet con- cealed, and wounding two hundred persons, although they seem to have received orders to display the strictest moderation. Large forces have, however, been sent into Prague, the main streets have been cleared by bayonet charges, and on Wednes- day the city was placed under martial law. External order is therefore preserved, but the temper of both races has risen to a height at which civil war is imminently probable. Two old German ladies, it is declared, have been felled for speak- ing German in a public street.

Nothing sensational has been received from the Indian Frontier this week. Sir William Lockhart adheres to his plan of sending away the larger portion of his troops, and forcing his way with ten thousand men through the hills to Peshawur. He is at present, so to speak, surveying routes, part of his force marching daily to some high valley, destroy- ing villages, and then returning, usually with some loss from the clansmen, who gather at dusk at every point of vantage. We note the death of Lieutenant R. M. Battye in a skirmish at Thabi, in the Chamkanni country, the fourth or fifth of that fighting family who has perished in recent years in frontier warfare. There are indications that the tribes are getting tired, some of the septa sending in rifles, or rupees, and, in one case at least, hostages, but there has been no general submission. We wish the home authorities would discourage that hostage business ; it is based on a falsehood, for we shall execute nobody in cold blood,rand it produces all over the world a bad impression of our methods of warfare.

The Times' correspondent at St. Petersburg telegraphs a decree issued on November 26th which may prove to be of high commercial importance. M. de Witte, the present Chancellor of the Russian Exchequer, and a man whom the Emperor trusts, has at length received permission to make gold the only standard, and has ordered the circulation of a new gold coin of five roubles (say half a sovereign), and has pledged the State to give gold in exchange for " credit notes" without limitation of amount. He decrees, therefore, that paper, being exchangeable for gold, shall be equal tender with gold in all divisions of the Empire. The one-rouble and three-rouble notes, which cannot be exchanged for gold owing to the difficulty of exact account, are withdrawn, the holders receiving a new and "heavy" one-rouble silver coin in ex- change. Mark that word "heavy." Has any one in office ever thought out what would be the effect of increasing the weight of the Indian rupee P It would be a simple solution of many difficulties if the cost were not unendurable. The step taken by the Russian Government will be felt all through the East, the more because that Government, often so tricky in diplomacy, means, as regards creditors and the currency to be scrupulously honest.

The London School Board Election—the results of which were declared last Saturday—has ended in a great victory for the Progressives, who have secured a majority, and misted their opponents, who have practically held power during the past fifteen years. Of the fifty-five mem- bers of the new Board, twenty-nine are " official " Pro- gressives, twenty-one are Moderates, two are Independent Progressives, and there is one Independent Moderate, one Labour member, and one Roman Catholic. Mr. Diggle

is thrown out. It will thus be seen that the Pro- gressives hold a clear majority over all other parties. It must not be supposed, however, that all the Progressives are equally anti-Moderate. Many of them are not extreme men, and in all probability the Guardian is right when it predicts the ultimate formation of a strong Moderate party which will bold the balance, and so determine the action of the Board. Perhaps the most marked thing about the election was the apathy of the voters. More than half a million fewer people polled last week than in 1894, and yet there were not fewer but more people in the possession of votes. The reason is, no doubt, to be found in the disputes between the various sections of the Moderates and the absence of any clear issue. Had the Moderates been able to unite on a reasonable and really moderate programme, we should have greatly preferred a Moderate victory. As it is, we can only hope that the Pro- gressives will use their victory with generosity and good feeling, and so avoid a reaction which is sure to take place if to the higher rate caused by greater educational efficiency is added the charge of neglecting religions education. The voters are not theologians, but unless we are greatly mis- taken they intend the London children to be brought up as Christians and not as heathens.

The first act of the Progressive majority has been to name Lord Reay as Chairman and Mr. Lyulph Stanley as Vice- Chairman, and Mr. Copeland Bowie and Lord Morpeth as Whips. We have nothing to say against the appointment of Lord Reay, except to notice that Englishmen of the middle class, however Radical and extreme in their views, always regard it as essential to have a Peer for Chairman. It must be a very aristocratic assembly that will put up with a commoner in the chair if there is a possible Peer within hail. With a Peer as Chairman, a Peer's son as Vice-Chairman, and a Viscount as Whip, the London Radical should feel quite happy. He will, of course, still indulge freely in the talk of "titled noodles" and "accidents of an accident" which he so much loves, for he is nothing if not illogical. It was, of course, inevitable that Mr. Lyulph Stanley should be Vice-Chairman. Let us trust that he will know how to temper his secular zeal with discretion. The new Board will probably find itself obliged to spend largely if it carries out its policy of Thorough, especially as regards sanitary condi- tions and overcrowding. Could it not save something by simplifying its machinery and by worrying the school masters and mistresses less with endless questions and eternal forms ? "Returns" are the curse of modern adminis- tration.

The new School Board held its first meeting on Thursday. On the whole the proceedings were satisfactory, and seem to promise that a reasonable attitude will be adopted on both sides. Mr. Davies, "speaking from the place usually occupied by Mr. Diggle," put the common-sense of the election very neatly. "The great lesson to be learned from the recent election of the Board was not that the electors loved the Pro- gressives more, but that they loved religious controversy less. Indeed, the one lesson of the election which was incapable of being mistaken was that the ratepayera of London would not encourage any person who endeavoured to introduce religions controversy into the work of the Board." We hope that the Progressives, as well as the extreme Moderates, will take this fact to heart. The Progressives have no mandate to do any- thing in the way of secularising the schools, and, indeed, are pledged to maintain the present Compromise. Unless they do this, in the spirit as well as the letter, they will not retain the confidence of London.

Sir William Harcourt made two speeches at Kirkcaldy on Friday; November 26th. The first, on receiving the freedom of the burgh, was non-political and bright, not to say boisterous. "I have often been defeated," said Sir William Harcourt, "but I have never found myself any the worse for it. On the contrary, according to my experience, there is nothing, if it is not too frequent, that does a man more good." At the great public meeting in the evening held in the Corn Exchange Sir William made a very able party speech. We have dealt with some of its features elsewhere, and will only say here that the wisdom and good sense of much of the speech was marred by a too evident desire io make party capital. Take, for example, the passage about the Army. It very

cleverly showed that the authorities were at sixes and sevens, but it gave not a word of real encouragement to a business- like solution of this great problem. Sir William Harcourt had ranch that was sound to say about our Indian Frontier policy, but he marred it all by his desire to press home his charge of bad faith. Here, however, he clearly overreached himself. There was a breach of faith, he asserted ; but no one accused Lord Elgin of want of faith. That is impossible. If there was a breach of faith Lord Elgin must have been the first to know it, and knowing it, he must, as a man of honour, have resigned, for the question involved on Sir William Harcourt's pleas is not policy, but honour. Lord Elgin could honourably carry oat a policy which he knew to be foolish and mistaken, not one which he knew to involve a breach of faith. There is plenty to be said against the Forward policy, but the breach of faith is a mare's nest.

If Lord Dufferin spoke oftener the newspapers would be a good deal more amusing than they are. He does not tell stories or make stock jokes, but there is a ripple of spontaneous laughter in his speeches which is quite delight- ful. Though a Unionist, he appeared on Thursday at a bazaar held in Edinburgh in aid of Leith Liberal Club, drawn thither, as he explained, by the influence of his daughter, Lady Helen Munro Ferguson. "I have been brought forth by this Delilah of a daughter of mine," said Lord Dufferin, "to make sport in the halls of the Philistines." His natural instinct under such circumstances would be to grope about for the pillars which support the Radical tabernacle, but the difficulty was to discover which was the master column which supported the keystone of the arch, for they appeared, each of them, to be crowned by a capital belonging to a different order of architecture from its fellow. "On one side there rises to my imagination the florid Corinthian exuberance of Sir William Harcourt, flanked by the staid Ionic chastity of Mr. Morley, confronted by the Done strength of your late Prime Minister, and subtended by the composite graces of Mr. Asquith and Mr. Birrell." That is a really excellent piece of humour, though it is not quite without political sting. The absence of "a master column" is a very sore point just now with the Home-rule party.

The Conference of the Engineers proceeds, but there is nothing definite to chronicle, and mere outside discussion at this stage is most undesirable. The chances of an even more important conflict is also drawing public attention away from the engineers. The Amalgamated Society of Railway Servants threaten that if their demands are not listened to they will bring about a general railway strike in Christmas week. No doubt there is some risk of this happening, but even if it does London will not starve, and the mails will run. By no means all the railway men are members of the Amalgamated Society, and the organ of that body frankly admits its doubts as to whether its battalions are yet big enough to secure victory. The companies, too, have made an agreement among themselves to act together and help each other, and this will greatly facilitate the working of the lines, even if a partial strike takes place. It is urged on the part of the directors that if the men's demands are granted the dividends on the ordinary stock would in most cases disappear. Whether this is so or not we cannot say; but we do not imagine that, as things stand, the men will gain anything by a strike. The employers are evidently not in a yielding temper, and the Society, though able to inflict very considerable pecuniary loss on the com- panies, is clearly not in a position to dictate any terms it pleases. Our sympathies are with the men on one point. Railway hours are apt to be too long.

The New Zealand correspondent of the Pall Mall Gazette gives in last Tuesday's issue an item of information which deserves the serious consideration of those who are agitating for countervailing duties on bounty-fed sugar. The New Zealand Government is going to pay a bounty on the pro- duction of beet-sugar. The following are the details of the promised Bill. It will give "to any person or corporation producing sugar from beet an annual bonus of 25,000 on not less than one thousand tons produced annually for four years." The measure will also authorise and provide for loans up to e20,000 "to any person or corporation at the rate of pound for pound on moneys spent on land, buildings, and plant for

the production of sugar from beetroot." Mr. Reeves has declared that the statement that £300,000 a year is to be paid I is not correct, but he does not, as far as we understand from his letter to the Times, deny that a smaller sum will be mid. But if the beet-sugar industry flourishes, as it very likely may, considering the natural advantages of New I Zealand, we shall have New Zealand bounty-fed beet-sugar entering the English market. If that is so, are we to counter- vail the product of our own Colony?

The Times of Tuesday gives a very interesting account of a great canal, one thousand and eighty miles long, between the Baltic and the Black Sea which is to be begun next spring, as the surveys are nearly finished. The new waterway is to be 217 ft. wide at the top, and 117 ft. at the bottom, with a depth of 281 ft., which will enable the largest war-vessels to pass through. The canal begins at Riga. and follows the course of the river Nina as far as Dit naburg. Here the great excavations will begin which will cross the watershed and connect the canal with Lepel on the 13eresina. That river will be utilised as far as its junction with the Dnieper, when the latter will be followed to its mouth. Of the total length of the canal eight hundred and seventy-five miles will be in canalised rivers, leaving only one hundred and twenty. five miles to be dug. The canal is to be so strongly built that it will allow vessels to steam six knots an hour. At that speed, seeing that the canal is to be lighted throughout with electricity, the whole journey will only take one hundred and forty-four hours, or say a week. The cost is put at 220,000,000, and the time four years, both estimates which are sure to be exceeded. The enterprise is a very great one, and if carried out may have very great political results. It was the completion of the Baltic and North Sea Canal which made Russia agree to the French Alliance.

The Home Secretary, Sir M. W. Ridley, made on Wednes- day an important reply to a deputation which pressed for legislation in favour of the early closing of shops. Sir John Lubbock, who spoke for the deputation, said he represented shopkeepers and not their assistants, and described the present hours of labour as excessive,—often fourteen for women as well as men. Sir Matthew Ridley replied with great modera- tion, fully acknowledging the grievance, but declined on the part of Government to interfere. He seemed to hesitate about women, who suffer in health from standing about so long, but as regarded men he could not see his way to interfere so violently with personal freedom. Many of the shops were served by their owners, and were they to be prohibited from serving ? We entirely agree with Sir M. Ridley, and think the philanthropists will do more injury by destroying human freedom of work, than they will do good by reducing un- willing toil. But we must at the same time frankly acknow- ledge that opinion tends the other way, and that it is moat difficult to define any preeise limit to the right of the State to improve general wellbeing. Some of our Building Acts contain clauses providing against evils which only injure the owner, and which on the theory that a man has a right to risk his own safety are quite indefensible.

The second "meet" of the Motor-Car Club took place at Whitehall Place on Monday last. About forty motor vehicles took part, oil being the predominating motive-power, though carriages driven both by steam and electricity were present. A double victoria made by the Accumulator Syndicate, which took part in the run to Sheen House, Richmond, was said to be capable of going one hundred miles with only one change of its accumu- lators. In one of the smaller carriages the towing principle was employed,—a motor-tricycle being harnessed to a light ear. By this plan vibration is avoided. 'A large steam coup, driven by steam was also present. This carriage is said to be able to run at twenty-five miles an hour on the roads. We trust that if it ever does so it will be promptly arrested. The motor is clearly ceasing to be a toy. Our belief is that in the end steam will be the motive force employed in the country, electricity in the towns. The electric cabs now on the London streets are admitted to be a great success. They are clean, comfortable, and fast, and the vibration is by no means disagreeable. Their power of cutting in and out in traffic is most marked.

Bank Rate, 3 per cent.

New Consols (2D were on Friday, 112.