A sharp dispute has broken out between the American Government
and the Sultan. That Government demanded compensation for injuries suffered by American missionaries during the anti-Armenian riots, and the Sultan promieei to pay some modest sum, £20,000 we believe, in satisfaction of the claims. Money being scarce, and American battleships not visible, he broke his promise, and the American Executive after waiting five years now insist that it should be kept. Otherwise they will break off diplomatic relations, and perhaps occupy Smyrna until the debt is discharged from the Customs revenue, with of course payment of costs. It is earnestly to be desired that Pharaoh should harden his heart, but there is little chance of such an advantage to the world. The Sultan has read of the Spanish War, he understands the condition of his Fleet, he is afraid of any shot fired on an Asiatic coast being heard in Mecca, he does not want to cede islands, which might be sold to Greece, in lieu of costs, and he will doubtless pay the money. If he does not, Admiral Dewey may go afloat again to do work rather less easy, and much more important, than the capture of Manila.
