NEWS OF THE WEEK.

THREE considerable events mark the war news of the week. Santiagci has been "sealed up" by sinking a collier in the narrowest part of the channel leading to the harbour; an army of twenty-seven thousand men has been ordered to land near Santiago; and the Captain-General of the Philippines has in- -formed the Government at Madrid that if they cannot assist him, he cannot resist both insurgents and Americans. The sink- ing of the 'Merrimac' was one of those acts which ennoble war. Lieutenant Hobson, a "naval constructor," volunteered for the service, and after explaining its desperate nature, asked for six men to help him. He intended, he said, both to scuttle and to blow up the 'Merrimac' under the enemy's fire, and the only means of escape would be a little boat astern. In- stantly every officer on the 'New York' and hundreds of men -offered themselves, and so great was the eagerness, that when the ' Merrimac ' was searched, stowaways were discovered who 'had to be removed by force. Men who have risen to that temper do not fail, and before dawn on the morning of the .3rd inst. the 'Merrimac' steamed under a terrible fire from the batteries to the point fixed on in the channel, and was -there sunk across it, either by letting the water rush in, or 'exploding torpedoes fixed to her side. The men with their 'commander got off safely in the little boat, but the Spanish fire was so heavy that they were compelled to surrender. The 'Spaniards immediately stopped firing, and Admiral Cervera, in admiration of his enemies' courage, offered at once to exchange them for Spanish prisoners, an offer which was accepted. The incident is sufficient of itself to indicate the certain result of the war. You cannot beat a nation whose -officers and men are equally ready to perish in forlorn hopes if only they may advance the national object.

The Spanish fleet thus sealed up, it remains to capture or destroy it. According to official accounts, this is to be accomplished by an attack on Santiago from the land side. Twenty-seven thousand men in thirty transports accordingly left Tampa on Wednesday, and are to be landed at a point on the coast, presumably Caimamera, tinder cover of fire from the fleet, which has already, it is reported from Cape Haytien, cleared away the Spanish batteries. From the point of debarkation they would march at once upon the forts protecting the harbour. The landing operation was to have been completed by Saturday, but there was on Friday a report that President McKinley had stopped the armament at Key West in order to in- vestigate a rumour that Spanish warships had been seen in the neighbourhood. The report is almost certainly false, though it is clear that the President, in his horror of bloodshed, is cautious to vacillation, and, if so, we shall next week hear of the capture of Santiago. A curious fact has come out in the Madrid debates. Admiral Cervera was not ordered to go there, or anywhere else, but simply flung across the Atlantic with permission to do the best he could. That may have been unavoidable, but it suggests that the Spanish Government is without resources even of ability.

We have described the singular scene in the Philippines elsewhere, but may mention here a rumour that the Captain- General, General Auguati, has surrendered Manilla to Admiral Dewey. It is not confirmed as we write, and is rather con- trary to Spanish character, but it is known in Madrid that the last despatches from Manilla are of the most hopeless kind. Practically the whole native army has mutinied, the Spanish troops are beaten whenever they engage, and a massacre seemed so imminent, even to Admiral Dewey, that the Captain- General may have considered it best to trust to his white opponent. The position of the Spaniards in the Philippines is a great puzzle to us. The Government is frightfully corrupt, even the Customs Revenue of Manilla being stolen, but what do the Spaniards do which makes the natives hate them so hard? In particular, what do the clergy do that the Tagals, who are Christianised, should pick out the curas for murder, and even for torture ? The clergy are said to be dissolute, but so they are in many parts of Spanish America where they are almost worshipped. We guess that they punish heavily for "relapses," and that it is a relapse for a Christian to attend a heathen festival, and that they also keep up a corvee system for the payment of their tithes, but we can find no clear evidence upon either point. There is no doubt about the savage enmity, but there are only hints as to its cause. What does Aguinaldo, for example, say in excuse for his followers upon this point P M. Maine has taken a test vote, and on Thursday his candidate, M. Paul Deschanel, was definitively elected President of the Chamber by a majority of 10. The vote was 287 to 277, showing fourteen absentees and three blank papers. It is known that the Government polled every Deputy not irreconcilable, and it is left, therefore, in such a, position that the abstention of even the smallest group will secure its overthrow. That is an impossible situation, and it is intended, therefore, to remodel the Cabinet, and, by admit- ting representatives of some moderate Radical group, to obtain a working majority. The plan has often been tried before, but it has never succeeded, the Radical group always alienating some Moderate group, generally upon a clerical or Socialist question. It must be remembered, too, that M. Brisson is not pleased, and that M. Brisson is a most formidable opponent. France, therefore, unless something unexpected occurs, is condemned to a series of weak Governments. That, at least, is the calculation ; but then it is the incalculable which always occurs in France.

The Paris correspondent of the Daily Mail, telegraphing to Friday's paper, states that a member of the Colonial party of undoubted authority tells him that he may "take it for a fact that France has conceded England's claim to Bonus." This, coming on the top of other rumours that the negotia- tions between France and England in regard to West Africa are approaching a friendly settlement, may, we hope, be con-

sidered as conclusive evidence that a friendly arrangement has been arrived at. We are heartily glad that the French Government has come to see that it was absolutely impossible for us to yield our claim to Boussa.

The Times' correspondent in Austria represents the situa- tion as almost desperate, and certainly it is very bad. The Germans in the Cisleithan Reichsrath refuse to allow busi- ness to proceed, one of them actually reading out the titles of two thousand five hundred petitions against the language decree,—a mode of obstruction which might make an Irish Member blush for his want of inventiveness. Another, Herr Wolf, preached open treason, declaring that Germany would protect Germans, and a large proportion of them all mounted the Hohenzollern emblem, the cornflower, which the Emperor William loved. It is supposed that the Emperor Francis Joseph will suspend the Constitution, but that is not certain. His Majesty is not fond of coups d'etat, and it appears he has a right when Parliament is not sitting to issue decrees having the force of law. He can therefore dissolve Parlia- ment, and not summon it again until "this swell in the public mind is somewhat abated." Perhaps it will not abate ; but Austria does not want fresh loans just now, and at all events he gains time. We shall believe in the ruin of Austria when we see a German regiment and a Slav regiment fire at each other. Frogs under a flagstone can croak, but croaking will not stir the flagstone.

The Times' correspondent at Pekin telegraphs to Friday's paper that on Thursday Sir Claude Macdonald signed an agreement with the Tsungli Yamen under which we obtain a lease of territory on the .mainland opposite Hong-kong, as well as the neighbouring island of Lan-tao. Up till now Hong-kong would have been at the mercy of batteries erected on the Mainland. As we understand the telegram, a line is now to be drawn across the base of the Kowloon peninsula joining Mirs Bay and Deep Bay, and we are to have (and shall, of course, make impregnable) this new Gibraltar, as well as the waters of both bays, though Chinese warships will be allowed to use them "whether belligerent or neutral." The total area leased amounts to about two hundred square miles. It will be all under British jurisdiction, except what is within the native city of Kau-lung. The lease begins on July 1st, and is for ninety-nine years. Certainly the vicissitudes of things legal are very strange. Who would ex- pect the device of a seventeenth-century Lincoln's Inn con- veyancer to turn up at Kowloon ? This making all secure at Hong-kong—Hong-kong is the second place of shipping in the Empire—is, of course, very satisfactory, and proves that our Government is not so incapable of looking after our in- terests as the Jingoes pretend to believe. That they are quite alive to their duties in China was also shown by Mr. Curzon's announcement in the Commons that if Russia sent troops into the Yangtse Valley without the consent of China it would be an act of war. "In such an event her Majesty's Government would take the requisite steps for the protection of British interests." There is only one other important item of news from China. A rebellion is said to have broken out at Chau-chart-fn, in the province of Kwang-tung, and the rebels have captured the city. The Viceroy of Canton has sent a thousand troops, but if the revolt spreads it may be the beginning of great things.

On Friday, Jnne 3rd, a dinner was held at the Hotel Cecil under the chairmanship of Lord Coleridge to promote the cause of closer relationship between the two branches of the Anglo-Saxon race. Nothing could have been more enthusiastic than the whole proceedings, and the speeches were not only full of good feeling. but what is more, were marked by tact and good sense. The most eloquent speech was that of the Bishop of Ripon, who contrived to be as enthusiastic as his very enthusiastic audience demanded, and yet never de- generated into gush. His chief point was one often insisted on in these columns,—the community of moral ideals which exists in the Anglo-Saxon race. Professor Dicey was, as usual, pointed and thoughtful. He dwelt upon the fellowship of those who serve her whom Lord Coke called "our lady Common Law." The most humorous speech was that of Sir Frederick Pollock, who told a truly delightful story E.,f the early settlers in Kentucky. As soon as they had cleared enough of the forest to sit down upon, they formed an Assembly and passed statutes. The first was directed against profane swearing. The second was for the encourage- ment of horse-racing. Could anything be more delightfully British ? Bat, as Sir Frederick Pollock said, a race of God. fearing sportsmen is hard to beat. On the whole, the dinner was a success. It will not, of course, by itself increase the good feeling between the two nations, but it was, nevertheless, significant, for it was the outcome of a real sense of sympathy.

It was announced on Tuesday that a Committee had been formed in order to promote, not a formal alliance, but better relations and a closer union between the United States and Great Britain. Personally we do not think that the Com- mittee will be able to accomplish much, for there is very little for it to accomplish. The good feeling exists already, and is in no need of "a movement" Still, the Committee can do no harm, especially as it has been joined by so many men of note,—both the Archbishops, the Duke of Fife, and a number of other Peers and Members of the House of Commons. The important thing to remember about us and America is, as we have said before, that neither nation will let the other go to the wall, and both nations now know it. No doubt the present enthusiasm will die out, and we may very likely growl at each other again almost in the old style; but the recognition of this interdependence in the last resort will remain. If people choose to put the fact on record by a dinner and a Committee we see no harm. After all, it is a thoroughly British proceeding, though possibly the public will feel that there ought also to be a. subscription for the purpose of presenting somebody with something,—say President McKinley, or, better still, the city of Washington, with a statue of the Queen.

On Monday Colonel Milward raised the question of the rating of the clergy by an amendment to the Finance Act, and quoted numerous cases to show that the rates on tithe often amount to an Income-tax of three or four shillings in the pound. He desired that relief should be given to the clergy as it had been to the landlords. Mr. Carvell Williams objected on the ground that any relief would., in effect, be an increasE of stipend voted by the State to the clergy. He also declared that the hardship now complained of was taken into account when the Tithe Commutation Act was passed. That, no doubt, is true, but it does not alter the fact that the rates fall with terrible severity on the poorer rural clergy. In many cases, as Professor Jebb declare& they were bowed down under "a load of sordid care." The Chancellor of the Ex- chequer's reply was most sensible. He began by pointing out that the problem was not one for increasing the remuneration of the clergy, but one of local taxation. Tithe-rent charge and glebe-land had always contributed to local taxation, and it was not practical to ask for their exemption. Besides, a Royal Commission was at this moment investigating the whole subject of local taxation, and it was necessary to await. their Report. If the Commission could make any suggestion for improving the position of the clergy, it would receive the best attention of the Government. Under the circumstances, we do not see that Sir Michael Hicks-Beach could have made any other answer. The hard case of the clergy emphasises, however, the general muddle and injustice of local taxation in our rural districts. The mover of the amendment did not wish to press it to a division, but Mr. Laboachere, "amid general laughter," refused to allow the withdrawal, and it was accordingly negatived by 188 votes (235 to 27), most of the friends of the clergy voting with the majority,

In the House of Commons on Monday Mr. Balfour made a statement as to the business of the House. After claiming all private Members' time after June 15th, in order that the House might, if possible, rise this year as early as it rose last year—i.e., early in August—he announced that no measure not yet introduced which was likely to lead to con- troversy would be pressed. Apparently, the London Univer- sity Bill, the Prisons Bill, the Benefices Bill, and the Scotch Parliamentary Procedure Bill will be passed, but the fate of the London Municipalities Bill seems not to be yet decided. Practically, then, the only important legislative result of the Session will be the passing of the Irish Local Government Bill. No doubt this will be called a very poor show for a whole Session, but we do not think the Government need fear such criticism. The country is not in the least anxious for more laws, and regards a. thin volume of new statutes with perfect composure.

Lord George Hamilton requested permission on Tuesday to raise a loan of 210,000,000 for India, and took occasion to describe the position of the finances of the great dependency. He thinks it is fairly good. The Famine has cost Rx.18,000,000 instead of the Rx.5,000,000 originally guessed at; but the Frontier War will not cost much more than Rx.5,300,000, while the Plague stands only for half a million. Out of the total, only Rx.6,000,000 cannot be provided for out of revenue, exchange having been steadily growing better. The average loss by exchange in the past three years is only Rx.11,000,000 a year! There has in the last twenty years been a net sur- plus of revenue over expenditure of Rx.17,000,000, of which Rx.13,500,000 has been spent upon railways,—" an immensely satisfactory account." Exports have increased in the same time from Rx.60,000,000 to Rx 103,000,000, and imports from Rx.35,000,000 to Rx.71,000,000 ; while the strange absorption of the precious metals has gone on as ever, gold having been imported to the amount of Rx.50,000,000 and silver to the amazing extent of Rx.165,000,000. Altogether India prospers, the weak financial places being the dependence on exchange, the increase of Debt, and, as we believe, the slow screwing up of taxation upon land. The weakest place of all is not financial, but is the increase of population, which evidently frightens even the optimistic Secretary for India. He is an Irishman, and knows what "a congested district" means.

Sir H. Fowler, we see from this debate, estimates the " tribute" paid by India to England at 27,200,000. It is nominally, he says, £16,000,000; but of that amount £8,800,000 is payment in respect of railway dividends and interest,—that is, in fact, payment for the hire of capital That is true, and should not be forgotten; but it is not quite the whole truth. We have to add to the 27,200,000 the whole of the remittances on family account made out of incomes paid by the State, and the modest fortunes sent home by officials, which together cannot, we believe, be less than n,000,000 a year, and may be more. Twelve per cent. on her whole revenue is a good deal for one country to pay to another for the privilege of being governed by her. The privilege is well worth the money to India, because she thereby secures internal peace, freedom from invasion, and wise, though rather "leaden," government; but we ought not to hide from ourselves that we are paid, and in hard cash, for our services.

On Wednesday Sir Howard Vincent and Sir A. Hickman moved and seconded the second reading of a Bill for enabling Local Authorities to advance not more than three-fourths of its value to a working man anxious to acquire the freehold of his house. If the Bill passed, without cost to any one, a working man would be able to borrow at about 31- per cent.,—an advance of 2150 would only cost him 2s. a week. Mr. Burns opposed the Bill with some violence. "The workman's desire was to live as far away from his work as possible. The object of this Bill was to pin him as close to his work as possible, so that the employer might at any time put his hand upon him." The Bill would allow employers to "morally intimidate their workmen, and ascertain their personal and domestic economy, either to stop an increase in wages or interfere with the com- bination of the workmen and the mobility of their labour." It is curious to observe how, as Mr. Burns becomes more and more the regular party man, his note grows shriller. Mr. T. W. Russell, speaking for the Local Government Board, gave the Bill a limited encouragement. The Government would support the second reading and also a Motion that the Bill should be referred to a Select Committee. This was accordingly done after the second reading had been carried by 99 (181 to 82). With the object of the Bill we have every sympathy—there cannot be too many house-owners—but we have the very strongest doubts whether the machinery of the present measure is wisely constructed.

Another star has fallen from the financial firmament. Mr. Ernest Terah Hooley, the well-known promoter, who two years ago was believed to be worth three millions, and who probably was worth one, on Wednesday filed his petition in bankruptcy. The extent of his liabilities is unknown, but it must be very large; and although his assets are said to be even larger, we have always a difficulty in believing in the starvation of a man who has plenty to eat. Careful nursing of depreciated securities may make a difference, but everything that has solid value will fetch money in London, and is usually sold before a speculator throws up the sponge. Mr. Hooley, originally a small stockbroker in Nottingham, was accustomed to buy and amalgamate large businesses, and sell them to the public at a heavy advance, which he did not conceal, but paraded as proof that the busi- nesses must be valuable, or so clever a man would not have bought them. The public, seeing that the shares so treated rose to a premium, rushed to buy, and Mr. Hooley for a few months enjoyed the fame and the social success of Mr. Hudson, the old Railway King. He bought historic estates, nibbled at boroughs, promised enormous charities, and behaved generally as most of the advertising millionaires behave. In all, he sold the public about twenty millions' worth of shares, on a large proportion of which the publio will sustain heavy losses. His fall made no impression in the City, where it had been discounted, but there must be thousands of decent people all over England who, because they believed in Mr. Hooley's judgment, will in future have to lead lives without amenity. Our pity, we confess, is reserved for the foolish ones among them, leaving none to spare for Mr. Hooley.

Daring the greater part of the past week—though as we write the worst seems over—there has been rioting of the most serious kind in Belfast. The worst outbreak occurred on Monday night, when one hundred and three policemen were injured by the stones hurled at them by the mob. On the following morning the streets are described as looking like ploughed fields, owing to their having been torn up to provide missiles. The immediate cause of the rioting is to be found in a Nationalist procession to commemorate the battle of Antrim,—a portion of the general celebration of '98. The procession was first attacked by the Protestants, and after that there were reprisals by the Roman Catholics. On the whole, however, it is impossible to deny that the Protestant mob have been the chief offenders. Their conduct is indeed strongly denounced by all the respectable people in Belfast. As always in Belfast, the soldiers have been greeted with cheers and no attacks have been made on them, though infantry and Dragoons have been freely used to act as human buffers between the opposing mobs. But though we may condemn the Protestant mob, their violence is a fact,—and a very significant one in view of the Home-rule controversy. Can any reasonable being suppose that the men who are so hardly controlled by the Imperial Government, would have submitted to a Dublin Executive under Mr. Dillon, or Mr. Healy, or Mr. Redmond P Home-rule must have meant civil war in 'Ulster, if merely the memory of '98 means riot.

The net result of the voting in the Australian Colonies on the proposals for Federation is, we deeply regret to say, unfavourable. All the Colonies, except New South Wale', adopted the Commonwealth Bill by majorities of two to one, but in the Mother Colony, although there was an actual excess of votes for Federation, the requisite proportion of votes was not obtained. This has caused great annoyance through- out Australia, for it is feared that it must necessitate the abandonment of the scheme. An Australian Commonwealth with New South Wales omitted would be an impossibility. An attempt is, however, being made to call a Conference of Premiers to reconsider the Bill, and to make it more accept- able to New South Wales. This proposal was at first rejected by the other States, but the last news makes it just possible that New South Wales may be allowed to vote on an amended Bill, and that if she adopts it, this new Bill may be placed before the other Colonies. Though the egotism of New South Wales is to be deplored, this working example of the Refer- endum on a great scale is of no little interest.

Bank Rate, 3 per cent.

New Consols (2!) were on FridLy, 111t.

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