NEWS OF THE WEEK.

EARLY in the morning of May let the Spanish fleet defending the Philippines was destroyed in the harbour of Manilla. It consisted of the cruisers Reina Cristina,' 3,500 tons, the 'Don Antonio de Ulloa,' 1,130 tons, the 'Don Juan de Austria,' 1,650 tons, the 'Castilla,' 3,540 tons, three smaller ships ranging from 1,000 to 1,200 tons, and some gunboats. Only the first three were armoured vessels. Commodore Dewey, eommanding the cruisers Olympia,' .5,800 tons, the Boston,' 3,000 tons, the 'Raleigh,' 3,200 tons, the Baltimore,' 4,400 tons, and a small gunboat, all armoured, late at night on April 30th steamed into the harbour, passing the forts on the island of Corregidor unharmed ; and when daylight arrived, in a battle of four hours'. sunk or burnt most of the Spanish ships, ..the remainder retreating into the little dependent harbour of Bakor, there to be destroyed by their owners. The Spanish Admiral was supported by heavy fire from the fortresses of Manilla and Cavite, but no damage of importance was suffered by the Americans, who at once opened fire on them, and, it is luny believed, reduced them to silence. Beyond this nothing as yet is accurately known, the Spaniards having cut the cable; but it is not doubted that Manilla has been burnt and that Commodore Dewey is master of the city. He has no troops with which to hold the country, but will probably be aided by the defeated garrison itself, as otherwise the dis- armed soldiers might be massacred by the Tagals, who form the bulk of the native population, and who detest Spain. Details, however, are, as we write, entirely wanting.

The news has created consternation in Spain, and an intense feeling, in part at least well founded, that the Monarchy has neglected the defences. The cities, therefore, already fretting under the stoppage of work and the rise in food, show a dis- position to riot, the Prefects have been authorised to proclaim the state of siege, and in Madrid it has been actually pro- claimed. The Cortes are seething with excitement, and the -fidelity of the Army is very doubtful, while both Carlists and Republicans are making capital out of the national mis- fortune. We have endeavoured elsewhere to forecast the immediate future, but may briefly say here that the Army will probably await the result of the expected battle off Porto Rico, and if that goes against Spain, will proclaim a military dictatorship under a General as Regent. The child-King, now thirteen years old, will remain King, but the Queen-Regent will be compelled to resign and retire for a tune to Vienna. It is the interest of the Army to repress anarchy, but the danger to foreigners, especially Englishmen, is very great, the persuasion of all Spaniards being that they owe all misfortunes to external intrigue. There is, moreover, actual hunger among certain sections of the people, though Government has prohibited the export of food. Exchange

has fallen to 53 pesetas, that is, a sovereign will purchase £2 4s. in local silver coinage.

The A mericane, greatly excited by the victory off Manilla, are becoming active at sea. The Department keeps its secrets, and the stories in the newspapers are contradictory, but it seems reasonable to believe that a powerful squadron, including some vessels hitherto blockading Havana, has started under Admiral Sampson to attack Porto Rico. It is supposed this operation will be interrupted by the arrival of the Spanish squadron from the Cape de Verde, and that Porto Rico, a singularly rich and fertile island inhabited by six hundred thousand Creole Spaniards, will be fought for on the Atlantic. Be it remembered, however, that as yet the position of the Spanish fleet is unknown, that rumour even suggests that it may have returned to Cadiz, and that if it has crossed the Atlantic the point of attack may be Key West. No one outside the Spanish Naval Department appears to know what the orders are, or whether the squadron is accompanied by tenders carrying coal. The best theory is that the Spanish Admiral, after doing his two thousand four hundred miles, will find himself short of coal, will steam for the great store accumulated at Porto Rico, and will there be forced to an engagement ; but it is theory only.

A great deal of the wrath of the Spanish people is directed against the Queen-Regent personally, for no visible reason except that she is considered a foreigner. When she opened the Cortes on Wednesday week her carriage passed through the streets amid a dead silence, and already rumours are circulating in Vienna that she will resign in order to allow of the appointment of a soldier-Regent. Queen Christina, a woman with a keen brain and a strong character, sees the situation clearly, and in an interview with a. correspondent of the Morning Post she expressed herself in a way that is pathetic in its despondency. She believes, she says, in the patriotism of Spaniards, but she has obviously no hope except in "the intervention of Europe after the first serious battle." As that intervention is most unlikely, she has probably no hope at all except that of preserving her eon's throne by bowing to the national will. We have elsewhere expressed our conviction that she sees the situation rightly, but we must add here that all correspondents, unlike ourselves, think that the dynasty is in danger as well as the Regency. We doubt it, not believing that the Army want a Republic, and not seeing why they should prefer either Don Carlos or the Braganzas. Had the Due d'Aumale been alive, they might have chosen him as a soldier-King ; but there is, in fact, no acceptable candidate except the child, Alfonso XIII., who would be in nobody's way for six years.

There is no chance as yet of the Continent intervening in the Spanish-American War, but we notice that the disposition to intervene increases. It is natural that it should, for the Governments are worried. They are greatly concerned about the ultimate disposition of the Philippines, a point discussed elsewhere; they are acutely afraid of a revolutionary move- ment in Spain, which would, if successful, diminish the prestige of all thrones; and they are troubled, outside Russia, by the effect which the rise in the price of bread is exercising upon the temper of the common people. There is positive hunger in Italy, Southern Spain, and parts of Austria. The rise is attributed entirely to the war, though it is not really due to it, but to the coat of increased maritime insurance charges added to the rise produced by what the trade calls a " shortage " all over the world. The excessively low price of the staple has done its work at last, and the area of land under wheat has everywhere been severely restricted, with the result that wheat would have gone up 10s. a quarter if there had been no war. There have been some large "regrating " operations too, as our fathers used to describe what we now call attempts to "corner," and altogether the market is in an unhealthy state. The rulers of the Continent fret under this, and all their diplomatic agents are fidgeting; but there is no plan yet, still less a plan which America would accept. She does not mean to retire empty-banded because Europe is in a fume.

The General Election in France, which will govern French politics for the next three years, takes place to-morrow. The precise result will not be known for a fortnight, as there will be many double ballots, but the returns next week will sufficiently indicate the general trend of opinion. The ballot in France, as in England and America, keeps its secret well, but as yet there are no signs of any important change in the distribution of power. It is expected by the Government that the number of anti-Republicans of the monarchical shades will be diminished, that the number of Radicals with a Socialist tinge will be increased, but that the majority will still consist of Moderates and Pliables. The elections will be eagerly watched by the " Boulangist " party, their expec- tation being that any great increase in the number of Radicals in the Chamber will alarm the peasantry and perhaps induce them to sanction a dictatorship. It is also watched with anxiety by all diplomatists, who are well aware that in France it is weak Governments which drift into war, from their fear lest they should be accused by opponents of want of patriotism, or worse still, of want of success in dealing with foreign rivals. M. Meline, as leader of Protectionists, fully expects an endorsement of his policy, but the rise in the price of bread may in the cities greatly affect the vote.

Lord Cromer's Report on the condition of Egypt, which was issued on Wednesday, is an extremely satisfactory document. During 1897 considerably over a million and a quarter sterling of public Debt was paid off. On the other hand, Egypt owes England about 2800,000 for our advance made to meet the expenses of the Dongola Expedition. After mentioning the terms in regard to the new dams at Assouan and Assiout, already described in these columns, Lord Cromer notes that under the new scheme "the more important of the temples on the Island of Phi]m will be free from all chance of submersion." The execution of the works will cost a payment of £78,613 every six months for thirty years, beginning in 1903, when the works will be com- pleted. At first sight it may appear unwise to add such a burden in addition to the conquest of the Soudan, but as Lord Cromer points out, the wealth derivable from the increase of water- supply will be the very thing needed to pay for the reconquest of the Soudan. We cannot find space to analyse any more of this most interesting Report, but must quote a portion of the highly characteristic passage with which it closes :—" As each successive year of the British occupation of Egypt passes by, two facts acquire an ever-increasing degree of prominence. The first is that the present regime, which has now lasted for fifteen years, has conferred and is still conferring the utmost benefit on the Egyptians and on all who are concerned in the welfare of Egypt. The second is that, whatever be the defects of that regime—and it cannot be doubted that, whether the matter be regarded from the English or from the Egyptian point of view, it possesses certain defects—the circumstances are such as to render it impossible to substitute any preferable system of government in its place." Every word of that is true, and hence the fact that We remain in Egypt.

Lord Salisbury has returned to England apparently quite restored to health, and on Wednesday he made a most power- ful and extremely important speech at the annual meeting of the Primrose League. In the first part of the speech, which was devoted to home politics, Lord Salisbury dealt with the House of Lords. The throwing out of the Home-rule Bill had shown that we possess in the House of Lords a body capable of repelling assaults on the integrity of the Empire and on our vital institutions, "assaults for which the full and undoubted assent of the people has not been obtained." Under such circumstances no political force exists in the country capable of overwhelming the Lords. "I do not maintain," said Lord Salisbury, "that the House of Lords might not be improved, but I am quite certain that for many years to come it will not be altered or improved, and for this reason, that you cannot make the House of Lords stronger and more active with.out taking away from the House of Commons a considerable part of its influence and efficacy. I believe, therefore, that the present balance of our Constitution has been established upon a secure basis by the conflict through which we have passed." Lord Salisbury went on to pass a panegyric on our splendid financial position, and to quote a memorable saying of Lord Beaconsfield's, namely, that finance was a question of policy, and that in proportion as your policy is good, your finance will flourish. We may, said Lord Salisbury, turn that apophthegm round, and say that since our finance has flourished, our policy must be good. We agree ; but should not that remind the Primrose League orators of the folly of girding at what they often call our mad and ruinous policy of Free-trade? Judge that policy by Lord Salisbury's canon, and they must admit it to be as sound as the sound finance it has produced. We have dealt at length elsewhere with the very impressive close of Lord Salisbury's speech. He sees in the early dissolution of "the dying Powers of the world" many and great risks to peace.

In the House of Commons on Friday, April 29th, Sir William Harcourt opened the full-dress debate on China and the Far East. Though clever and full of shrewd hits, his speech was a failure, for it was based upon the necessarily hopeless attempt of combining against the Government the people who think they were too anti-Russian and those who thought they were not anti-Russian enough. The Government, said Sir William, had three principles of policy, —(1) to oppose territorial occupation which would lead to the dismemberment of China, (2) to keep the commercial door open, (3) to refuse to acknowledge that any of the Powers had special and peculiar spheres of influence, but to insist on equal rights for all. In every case the policy of the Govern- ment had broken down and been abandoned. Having made this general statement, the leader of the Opposition tried to. show that we had been "done," first by Germany and then by Russia. He was particularly indignant about the loan, and "rubbed in" Talionwan and Port Arthur with as much emphasis as was possible. As for Wei-hai-wei, it was worse than useless. What was going to be done with it? Are you going to make it into a Gibraltar or a Malta, or merely treat it as an "experimental site"? If it is to be made into "a sally-port against Russia "—an interesting verbal indication of the Plantagenet and mediaeval strain in the speaker—how are we to get the soldiers to man it ?

Mr. Balfour's reply was in his very best manner,—free and yet alert, ingenieus and yet not tricky or ad captanduni. After pointing out the absurdity of Sir William Harcourea attempts to stand on the Jingo, as well as the anti-Jingo, stool, he drew a distinction between spheres of interest and spheres of influence,—a perfectly sound distinction, no doubt, but one somewhat too fine for a Parliamentary audience. It was not owing to Russian menaces that we abandoned the proposal in regard to Talienwan. It was a suggestion in the course of bargaining, that was all. Is no point mentioned in negotiations ever to be given up lest it should be called climb- ing down ? "If this is the way you are going to enter upon a bargain, you must in all cases start with your irreducible minimum." Look at the way Russia was able to make the most extraordinary climb down in Corea without the slightest difficulty. That Government has already immense advantages "in its secrecy and in the absence of an auditor and comptroller-general." Do not let us give her additional advantages by making it impossible for our Government ever to bargain. In regard to Port Arthur, and the possi- bility of keeping Russia out, Mr. Balfour spoke with that absolute frankness which always marks a really great statesman. A great many people think that we ought at all hazards to have prevented the Russians coming to Port Arthur. It would, of course, have been perfectly possible for us to do so. "I think it extremely probable that if we had sent our Fleet to Port Arthur and occupied the port Russia would not have made it a casus bah." But there was no certaintybe11_ t t a_ 1 .

"It might have involved us and Russia, and, bye not unnatural consequence, the whole of the civilised world in arms." At any rate, said Mr. Balfour, "I would never consent to take Part in a game of bluff, which may have consequences like that, unless I am prepared to face those consequences." Mr. Balfour brought out in his speech the substantial advantages which we have acquired in China in spite of the repeated assertions that we have failed all along the line. We retain our previous rights in Port Arthur and Talienwan. We have in Wei-hai-wel an invaluable diplomatic base and a good secondary naval base ; we have obtained from China important commercial concessions; and finally we have ear- marked the Yangtse Valley as our sphere of interest. Mr. Balfour ended by pointing out, as we think, with perfect truth, that Russia's position has by no means been bettered by recent events. We agree, but cannot feel sure that this is good news for us. We want a satisfied, and not a restless, Russia in the Far East. Taken as a whole, the answer of the Government comes to this. We tried to maintain the status quo in China, and to prevent the increase of Russian influence at Pekin. We found, however, that we could not do that without a war, and a war seemed to us not worth while. Therefore we did the next best thing to the status quo, and took means to assure to ourselves (1) a right of pre-emption over the Yangtse Valley ; (2) the power to put on diplomatic pressure at Pekin. In addition, we took the opportunity to get a good many commercial concessions we have long desired. Not a bad result, say the Government ; and we should agree heartily but for one thing. They have contrived in the course of events to get at loggerheads with Russia. That they should have avoided by deciding earlier that they did not mean to seriously withstand the demands of Russia. Russia ought this moment to be at Port Arthur, not against our will, but with it.

During the past week the House has been'busy at the work of passing the Irish Local Government Bill through Committee. On the whole, the discussion has not been in any sense memor- able, though the interest of the Irish Members in the measure has not palled. We are glad to see that in the course of Wed- nesday's debate Mr. Gerald Balfour took occasion to state again the sound view that the population of the West of Ireland had been demoralised by the idea being always held up to them that they would get help from the Imperial Exchequer. 'This had been done consistently in recent and on previous occasions, and such exaggeration had a most demoralising effect on the people concerned, they being taught when periods of difficulty occurred not so to conduct themselves as to diminish the distress, but to look simply to the Imperial Exchequer or to public bounty." It was important to drive out of the minds of the people that if the harvest was bad the State was bound to come to their relief.

The Lord Mayor on Wednesday gave a dinner to the medical profession, at which most of its chiefs were present, and the Minister for War made an announcement most gratifying to Army doctors. They have long had a grievance against the State for refusing them "substantive rank" in the Army, and have consequently discouraged students from entering the military service. Lord Lans- downe now told them that their grievance would be removed, that a "Royal Medical Army Corps" would be organised, and that its officers would bear the same titles as other officers in the Army, up to the rank of Colonel, "always upon the clear understanding that these titles do not confer upon them any title to command outside it." Above the rank of Colonel the doctor will be known as Surgeon- General, the War Office desiring greatly to limit the number of Generals not in active employ. The announcement was received with warm applause, the Government, according to the President of the Royal College of Surgeons, having con- ceded all that the profession desired. The innovation is of Importance, as there is no doubt that the Army Medical Service had become so unpopular in the great schools that there was danger of its being abandoned to inferior men. We do not ourselves quite understand why a doctor thinks more of himself when he is called a Major, but then neither do we understand, as he does so think, why the War Office should have resisted his prayer. Nobody has to face danger more directly than a good Army doctor, and he is usually, of two men of his rank, slightly the better informed.

We are unable to believe in the scheme for creating national granaries which finds favour in so many quarters. It is quite true that Great Britain is now dependent upon imports of wheat for the daily bread of the people, and that

intercommunication having become more rapid, stocks are apt to run very low. It pays the dealers to live from hand to mouth. It is said that sometimes we have not a month's supply within the four seas. Any interruption to the ocean routes would therefore raise the price of bread to a high figure, and a blockade would reduce us to starvation. A blockade of this island is, however, nearly unthinkable, and the circum- stances under which an enemy would declare war on a neutral for bringing food to our ports are to the last degree improbable. Even a Continental coalition would hardly declare war on America and the Argentine Republic, and the high price would draw every quarter of wheat that could be forwarded. The granaries must be emptied periodically, and their exist- ence would so alarm and hamper the trade that the regular supply would be impeded, or occasionally stopped. The true defence for the people is a strong Fleet, carefully organised to meet the danger that, if the Atlantic could be shut to us, our very bread might be taken from us. Britain for food purposes is a city. It is our first business to see that we can never become a city besieged.

A case of cruelty which has attracted much attention was decided on Monday. Mrs. Camilla Nicholls, a person living in Kensington on charity, but in a house of £60 a year and with three servants, hired a girl named Jane Popejoy on very low wages. Fourteen months afterwards the girl died, and the doctors who examined the body testified that she had been beaten all over and slowly starved to death, a fellow-servant adding that Mrs. Nicholls had once burnt her with a red-hot poker. There was a little doubt about this part of the story, the witness not having made the statement at first ; but the beating and starvation were clearly proved, and the jury found a verdict of "Guilty." The Judge gave a sentence of seven years' penal servitude. We have remarked upon one aspect of the case elsewhere, and may add here that the popular rage against Mrs. Nicholls bears evidence to a remarkable change in public feeling. At the beginning of the century no one had so much difficulty in obtaining justice as an oppressed apprentice or servant girl of the lower type.

The present House of Commons has again deserved the thanks of those who care for the beauty of London and wish to preserve it from so-called "improvements." On Thursday last they threw out by a majority of 119 a Bill proposing to lay tram-lines and allow the running of tramcars across Westminster Bridge and down the Embankment. Of course, the plea was raised that the tramcars were needed in the interests of the people ; but there was very little substance in the plea, and it was met by the argument that working men value the Embankment as a place on which they can form the processions which march to demonstrate in Hyde Park. Tramways would interfere with their arrangements. Thus the tram-line appeared first as the friend of the people, and then as the engine of the tyrant subtly designed to destroy the right of free speech and of processions with banners. On the whole, the balance of argument was strongly against the proposal. The Embankment is a kind of park, and in summer much used by people who want a stroll and a breath of fresh air.

The news from Hawarden is as sad as ever,—tbough perhaps it is a weakness to describe suffering borne so heroically and in so fine a spirit sad. On Tuesday occurred a very characteristic and pathetic incident. Mr. Gladstone received a letter of condolence from the University of Oxford, sent by the Vice-Chancellor and the Hebdomadal Council. To this Mr. Gladstone told his daughter to reply : "There is no expression of Christian sympathy that I value more than that of the ancient University of Oxford, the God- fearing and God-sustaining University of Oxford. I served her perhaps mistakenly, but to the best of my ability. My most earnest prayers are hers to the uttermost and to the last." Those words will send:a thrill of deep feeling through Oxford men wherever they may be found. The loyalty of the great statesman to the well-beloved foster-mother of his beliefs and intellect is strangely touching. Even a vote of sympathy from the House of Commons could not have moved Mr. Gladstone so greatly.

Bank Rate, 4 per cent.

New Consols (21) were on Friday, 110:.