The herald., 1895-11-03
THE LOWERING WAR CLOUD
Hangs Over the Horizon of
the East
A SLUMP IN SECURITIES
Follows the Circulation of Alarmist
Rumors
II Europe Tides Over The Crisis Without
War. 1t Will Be Triumph
for Diplomacy
A SLUMP IN SECURITIES
Associated Press Special Wire.

Associated Press Special Wire.
LONDON, Nov. 9. - (Copyrig htsd,
1926, by the Associated Press The po-
litical horizon is obscured by dark
clouds and the atmosphere is charged
with the electricity OF threatening war.
The advices received from all parts
ara of very nessimistic character,
and the situation has been further COM
plicated by the report which has just
reached here of the firing by Venezuela
guarda costa on the Myosotis, vessel
flying the British flag. off the islanp of
Trinidad. and the killing of her COM
mander, Thomas Garcia.
The general opinion expressed in
official circles here is that if the European
powers tide over the present crisis without
corning to hard knocks in some part of
the world it will be matter for sincere
congratulation and a decided triumph
for the diplomacy OF peace-seeking
nation. Naturally, in view of the alarm
ing rumors circulating everywhere, the
European bourses have been badly
affected, and as TeSuis there has been
a general slump IN International securi-
ties. The newspapers mere are trying to
put on a bold front in the face of a 81 Gu.
alton which is Labeled dangerous by even
the most conservative people. but there
is no getting away from the hard fact
that Great Britain Is more than likely to
find hersel fin state OF freezingisolation
In the far east her diplomats have been
boldly and cleverly outmanoeuvered by
those of Russia, and in the Armenian
question it is feared that Russia and
France are more than prepared to leave
her in the lurch when it suits them.
Regarding the situation in the far east,
in the highest political circles in Eng
land, as we'll as among the European
powers generally, no doubt exists that
extensive concessions in Manchuria have
been given by China to Russia. Recent
expressions in American publications of
the gooi will of the United States toward
Great Britain have. in view of the dan
gerous situation of affairs. been source
of much comfort, and the same may be
said of the attitude of the United States
toward the Armenian question.
Madagascar, too, promises to open up
a troublesome problem III the near fut-
ure in views OF the nature of French pro-
tectOrate which is framed so as to relieve
the French government of any liabilities
for the debts of any foreign creditor con-
tractod by Madagascar.
The Spectator tocay, referring to Mad
agascar, says:
"It seems probable that Frances new
acquisition will cause fresh troubles in
Europe"
The steady and old established Satur-
dav Review takes an alarming view of the
eastern situation, saying:
1--WE are face to face with the fact that
Russia intends to seize as much OF North
western China as she can assimilate, while
France is resolved to extend her empire
from Siam to Southwest China, and this
division of territory we cannot allow
The war scare caused by the Hong
Kong dispatch TO the Times and Glube
telling of the railway and otner Conces-
sions Ch ina is supposed to have secretly
made to Russia, has been replaced in the
public mind by the alarm felt at the ru-
mors from western papers that Japan and
Russia have formed or are forming an
understanding which is to result to their
mutual benefit. This new feature of the
complications in the east caused really
cold chill to pass down the backs of her
majesty $ ministers and the premier is
said to be shivering still. Be that as it
may there is much uneasness in official
circles here and elsewhere and this has
been reflected upon the stock eXcnange
and continental bourses, causing de-
cided falling off in prices, particularly of
Russian, Turkish and Spanish securities.
There seems to be no doubt thai Great
Britain, practically isolated, is facing
an exceedingly grave situation.