The herald., 1898-11-27
Associated Press Special Wire

Associated Press Special wire
LONDON, Nov. Copyright, lS9s)
France and Italy, after II decade of tariff
warfare, have surprised their friends and
enemies by concluding a commercial treaty
which promises to shift the balance of power
in Europe. But for the friendship of the
United States, which emboldens Great Brit
ain to comparative Indifference regarding
continental combinations, Great Britain
would be alarmed at this prospect of Italy
deserting the triple alliance and adding her
formidable navy to the ranco-Russian COM
pact, which is held to be the inevitable result
of the union of the two estranged nations
The critics here regard the treaty as the
sequel to the Fashoda incident. France
defeat in Egypt opened her eyes to the neces-
sity of increasing the number of her friends
Therefore, she hastened to initiate negotia-
tions with Italy and will give her weaker
neighbor the benefit of the minimum tariff,
long and vanly sought by the latter. The
Italians estimate that under the new ar
rangement million hectolters of heavy
southern wines, which are used in mixing the
lighter French wines, will be exported to
France, resulting in great impetus to
Italian industry. In return France expects
to remove the dangers of having to cope with
the Italian navy in the Mediterranean in
the event of a German war, and also to nulli-
fy Germany's policy of isoating France.
Free trade Britain has no subsidies she can
offer to retain Italy's support; but, in the
present position of the worlds policies, she
is not as solicitous for it as she would have
been year ago. What Great Britain loses
in Italy, the Westminster Gazette declares,
she gains in the Philippines.
THE AMERICAN POLICY
Conversations which representative of
the Associated press has had with politicians
here indicate that the interest of English
men in the United States eastern tariff is
increased by the belief that once embarked
in colonial acquisitions, the United States
will be compelled, as Great Britain has been,
to constantly add to her colonial possessions
by others, which may be thrown on the
market, merely to prevent them falling into
the hands of her rivals.
The Inauguration of "closed door pol
icy, they think here, would do much poten-
tial damage to British interests, and every
American utterance tending to foreshadow
the "open door policy has been eagerly
seized upon and magnifed by the editorial
writers.
The London office of Philippine capital
ist has received u letter from its agent at
Manila, dated October Is, in which the agent
says
"The rebels are prepared already to resist
annexation. | am in the confidence of their
chiefs and | assure you they are quite pre-
pared to retire to the hills il more than
protectorate is offered. | hope it will not
come to warlke proceedings, for it would be
very protracted affair. The Americans
would not find the rebels as easy as the
Spaniards did, for they formerly had only
400 rifles while the rebels now have 10000
rifles and eighty cannon, including several
MaXims."
The Manila correspondent adds: Amer
leans are not allowed to pass the rebel lines
without passports. A party of German Of
hcers who attempted to do so without pass
ports were mistaken for Americans and were
refused permission. When it was discovered
they were Germans the officers were permit
ted to proceed"
The manager of this Philippine company
who has spent years in the Philippine is
lands, does not attach any Importance to the
foregoing plans. He says the Americans
have magnifed the Importance and influence
OF Agunaldo throughout.
SPANISH FINANCES
There is report in commercial circles
that Spain will reorganize her entire tinan-
ca system and readjust her bondeuindebt
edness after the treaty of peace is signed
This report dsturbs the bondholdefs of
Spain
An English Carlist positively asserts that
Don Carlos army will take the field in Spain
soon after the treaty is signed lie declares
loan has been fully financed and that it is
divided equally between France and Eng
land, and he adds that after the English
capitalists were shown the evidences on
which Don Carlos chances of success are
based they offered several times the amount
asked The English Carlists assert that much
more money would have been secured had it
not been for the fact that Don Carlos stipu-
lated that there should be no assistance
from Jews, as he is apprehensive of their OBJ
tanning financial control of the monarchy.
Continuing, 1T was asserted the Spanish
government has known for some time that
Don Carlos possessed an army organized into
battallons and batteries, Differed and large
ly armed, but the Spanish ministers counted
on his failure to secure funds. Therefore
the Spanish government is said to be panic
stricken and to be endeavoring to make the
Spaniards believe that Great Britain has
agreed TO finance Don Carlos, and that he in
return has undertaken to cede the Canary
islands to Great Britain in the event of suc.
cess.
The commission appointed by the Spanish
chambers OF commerce to consider tho ouos.
ton of reforms in Spain met at Saraqossa
ard recommended sweeping military ond
civil retrenchments, in addition to many
reforms for the benefit of the workingmen.
The commission pronounced in favor of an
investigation into the continuance Of tho
Cuban insurrection and Withholding the re.
wards promised to Cuban officers.
AUSTRIAN AFFAIRS
The recent tragic death of the empress of
Austria overclouds the celebration in that
country of the half century of the emperor's
reign and prevents the carrying out of the
festive features OF the program. The cere-
monies will be confined to the cburches