Meantime the situation in Venezuela is sufficiently intoler- able. The
blockade continues, having been, retrospectively legalised by a notification in the Gazette of Saturday, Decem- ber 20th, and a few more small vessels have been captured by the investing forces. American trade is suffering, and a certain amount of friction has arisen through the action of the British Admiral in forbidding an American mail steamer to remain in harbour at night during her stay. It is further stated that the Revolutionists, encouraged by the continuance of the deadlock, are showing renewed activity and threaten- ing to march in force on Caracas. But the most serious feature of the situation is the increasing dearth of supplies. The price of food has greatly increased in consequence of the blockade ; there are hardly sufficient provisions in Caracas to last a month; no further supplies of cattle are arriving, the beasts being seized on the road by the Revolutionists; and the importing houses have stopped giving their orders to the United States. To revert to the question of the German claims, we may note that the Berlin correspondent of the Times in Wednesday's issue gives a remarkable account of the operations of the Disconto Gesellschaft Bank, showing how, in consequence of the out-throat policy of that corporation in connection with the Caracas railway, the Venezuelan Govern- ment were saddled with the payment of an exorbitant rate of interest on the capital sunk in the enterprise.
