- An approach to a condition almost of panic was
produced on 'Change on Monday by a telegram announcing immediate war between Russia and Japan, and the occupation of Masampho, the southernmost port of Korea, by Japanese troops. The seatenierit was promptly denied; but the language of Viscount Hayashi, the Japanese Minister in London, was not 'reassuring ; he; who had been most optimistic, obviously expecting war. On Wednesday, again, reassuring telegrams were published ; and the Minister publicly recommended his friends to buy Japanese stock, as negotiations were progressing. favourably. The precise object of these negotiations is not, however, defined; and we would recommend our readers to pay little attention to the daily intelligence from either Tokio or Port Arthur. The causes of variance between Russia and Japan lie deep, and probably will produce war in the end ; though, for reasons given elsewhere, both Powers hesitate to commence hostilities. It is evident that the Russians, in spite of all pledges, intend to keep Manchuria, to the indignation of the Americans, who consider this a direct breach of faith ; and they are most un- willing to give the promises demanded by Japan that they will not enter Korea. It is possible, however, that they will give them at last, especially if Bulgaria and Turkey go to war; and then Japan will remain quiescent, though watchful, suspicious, and fully armed.
