The German Government claims a sum of £450,000 from that
of Venezuela, not, as seems to be imagined, as money owing by private citizens to German subjects, but as money violently withheld by the Government of Venezuela, most of it consisting of three years' arrears of interest on the Five per Cent. Loan of 1896. The German Government has accordingly despatched a squadron to the coast, and intends to seize the Custom-houses and levy the dues until the money owing is paid. The local Government refuses to yield, and as it has not the money, will probably be firm, hoping that at last the American Government will defend its independence. The American Government, however, declares that the German GOvernment is within its right, but that it must make no permanent seizure of territory. The Germans declare that this is a reasonable and satisfactory arrangement, and as the American Fleet on the spot is much the stronger, will probably adhere to this view. The only danger, therefore, of collision is from ill-considered action on the part of the captains of the cruisers,—which is improbable.
