New-York tribune., 1898-01-23
NEWS OF TWO CAPITALS.
WAR RUMoRs DO NOT AFFECT STOCK
QUOTATIONS..
JAPAN is AN UNCERTAIN ELEMENT IN THE
DIPLOMATIC COMPLICATIONS OF THE FAR
EAsT-UNITED ENGLISH SENTIMENT Is
BACK OF LORD sALIsBURYs CHINESE
POLICY - HEAVY IMPERIAL Ex-
PENsEs NOTES OF ART
tBY CABLE TO THE rRrBuNE.l
AND THE DRAMA.

LONDON Jan. 1.-THE most remarkable pht.
nomenon OF the times is the steadiness Of the
hnancial exchanges in every capital The ru-
mor-mongers are active everywhere and Brit
lsh statesmen are almost beigerent in tone
Sir Michael Hicks Beach fairly challenging to
war. Mr.. Chamberlain wellnigh pledgng Eng
land to act Independently Of a European con-
cert and Lord Wolseley boasting Of the celerity
with which two corps can be moblzed for
foreign service. Yet there is no fall in securi-
ties on any bourse, not even when the evening
papers are announcing the speedy sailing OF a
japanese fleet and an imminent crisis In the
far East What optimists European financiers
must be, or else how credulous are the daily
purveyors Of foreign news
Two essential facts in the Chinese situation
are. first. that England has taken strong
line In favor of commercial freedom, and Sec
ond. that Japan is prepared 70 fight Not only
has the Admiralty stationed two warships at
Port Arthur and two at Kao-Chau as practical
intimation that while these ports may be con-
verted into naval stations they must remain
open to the commerce OF all nations but the
British Government has also offered TO guar
antee a loan of f12MOOOO on conditions
which will safeguard the freedom of COM
merce. The loan itself has become a deep
intrigue, in which several embassies here are
taking an active part Germany is supporting
English proposals. while France is secondng
the Russian protest against opening Talien-
Wan and menacing England with serious trouble
on the upper Nile. Germany. after opposing the
Russian nomination of Prince George TO the
Governorship of Crete. has suddenly veered. and
now supports IT. Germany may yet come TO the
assistance Of Russia in the diplomatic cam
paign in China, and show herself unfrendly to
England.
Lord Salisbury has attempted by a bold
offer TO lend China the money required for
the liberation Of her impounded territory, to
counteract at one stroke the full advantages
acquired by Russia, Germany and France in
rescuing the defeated nation at the close OF the
war with Japan. He may succeed but diplo-
macy is game which requires weeks OF delib-
crate negotiation and tedious deav. Japan is
an enfante terrible, with strong will of its
own, and does not respect the amenities Of the
European family of nations What Japan may
do with its battle-ships. cruisers and armies II
is hardly safe for the best-informed oprimist
among European fnanciers to forecast. This Is
the element of mystery in the situation which
battles the most ingenious conjecture other
wise diplomacy in the far East would follow
the analoges Of the East and open up a
clouded vista of intrigue. delay, inactlon and
| compromise. The Cabinet has taken consider
! able risks in offering to guarantee a Chinese
| loan, but these are minimized by the sea power
| which adds tremendous weight to the financial
proposals Lord Salisbury has indeed ordered
a new departure in English policy by commit
ting the nation 70 important monetary relations
with China and has not consulted Parliament.
The Chinese loan may be compared with the
purchase of the Khedve's Suez Canal shares,
| which Lord BeacOnsfed directed the advice
Of Frederick Greenwood after dining with one
of the ROthschds. The Commons entitled
to have voice in such proceedings and 10 be
consulted at an early stage. This point Is not
raised by any opponent All the Liberal Lead
ers who have spoken on the subject have as
sured the Government of their hearty support.
The Opposition press is united In advocating
the new Chinese policy and considers the MAIN
tenance OF the freedom Of commerce an ade-
auate cause for Merchants know that 50
far as the European rivals are concerned, Eng
land commands the trade OF the far East in
the open market. II is policy OF enlightened
self-interest. but it has moral side and con-
trasts favorably with the policy OF landgrab-
bing and empre-parttlonng TO which other
! European Powers are committed Ia that quar-
! ter.
The Chancellor Of the Exchequer is the unhap-
pest member OF the Cabinet. He has been
counting upon a considerable surplus at the end
of March, but supplementary estimates required
early I'm the session will probably exhaust It.
The daughters Of the horse-leech are around
him. crying, Give give!" The demands or the
Indian Excheouer must be met either by direct
contribution by the guarantee OF gold loan
A large draft will be required for the Khartoum
expedition. for the Egyptian treasury is empty.
and the caisse will not allow the diversion OF
interest on the debt. The Indian frontier war
expenses must be paid; British troops moved up
the Nile and bills for the West African expedi-
tions settled A considerable financial grant
must be voted for the relief Of the West indian
ooIonies Ireland has been promised grant OF
5000 900 for easing up rates and lubricating the
massage OF a local government BILL and Scot
land has claims of equal magnitude. The army
will be increased by fifteen thousand men,
and the War Office wants 100000 in ad-
vance Of last years demands. The navy VIII
he strengthened by seven thousand men. and
the estimates will be enlarged. whether the
Chinese loan be guaranteed or not every
danartment OF the Government and every
quarter OF the Empire wants more money,
and the Chancellor of the Exchequer is ex-
nected TO find it. Surplus revenues VIII be like
water poured upon sand. The British Empire
has become the most expensive show on earth.
The Cabinet is holding a prolonged session
to-day. but not for the single purpose OF con-
sidering the Chinese question. The legislative
details OF the approaching session are now VIZ
tually arranged, and the Ministers are I'M
pressed with the necessity Of expedit!ng busi-
ness in every possible way as an immense
amount OF work needs TO be done The speeches
Of the Ministers have proved that they under
stand one another and are heartily IN accord on
all questions Mr.. Chamberlain may nave as
appointed his audience at LVerpooi oy aa'ooa'
ing doles TO the West Indian Planters 'hs'eau
Of applying countervalling sugar duties Si'",a.
| - ,hoss IN operation in the United States. but
ha gave practical proof that the Cabinet mad
| - -, -. ..,hiact carefILY and marked out