It is said that a furious struggle is going on
in the Govern- ment of Madrid between the Ministers who think it time to make overtures for peace, and those who would go on with the war indefinitely. For the moment the war party has triumphed, and Senor Sagasta, who is neutral, remains Prime Minister, but it is believed that after the fall of Santiago, even he will request peace from the United States. We think he is much more likely to resign in favour of a military Cabinet, the soldiers, the Church, and the populace being decidedly for war, but even if he asks for peace he is not likely to secure it. There is not the smallest evidence that either he or his colleagues, or the people of Spain, are prepared to offer reasonable terms. They are willing to grant independence to Cuba, but they wish to keep Porto Rico and the Philippines, though they would concede to the States a coaling-station in the latter colony. These terms, which would leave millions of colonials at Spanish mercy, and almost involve treachery towards the Tagals and their leader, Agninaldo, will not be accepted even if Madrid concedes an indemnity for the loss of the ' Maine,' and of this there is as yet no hint. President McKinley's reply to General Toral, who offered to surrender Santiago on condi- tion that his troops were allowed to march away, indicates that Washington has made up its mind that the terms shall be dictated by the victor, not suggested by the vanquished. It must not be forgotten that behind the Cuban question there is a financial question, and that Spain as yet insists on guarantees for the Cuban Debt, which, whenever they are formulated, will be rejected by America with a certain amaze- ment at their audacity.
