The San Francisco call., 1898-03-25

communication they are to expect from the President.
 Cablegrams coming from three different sources announcing that gpain's formidable torpedo fotilla was headed in this direction were the principal disturbing element in the developments of the day. In the Navy Department the news created a great stir. It caused renewed activity in the work of naval prep arations and resulted in the prompt allotment of an additional million dollars for the purchase and fitting out of an improvised torpedo fleet.
 But while the Navy Department was disposed to regard the sailing of spain's fleet from the Canaries as a menace, the State Department, after 9 conference with the Spanish Min ister. announced that no objection could be probably raised against the fleet coming in this direction, and that it in no sense aggravated the situation.
 Although it had been previously intimated to Spain through her Min ister here that it would be wiser, in the interests of peace, if Spain's tor pedo fotilla was kept at the Canary Islands. officials of the State Depart ment told me to-day that in the light of the explanation made by Spain ve could not regard the movement as a hostile one.
 "It was formally announced" this official said, 1.-two months ago, that Spain had equipped torpedo fleet for self-defense in Cuban and Porto Rican waters, and unless the United States is prepared to declare war no objection can be made to it's sailing. Besides, we cannot imagine that Spain would be so foolhardy as to send a small fleet of torpedo-boats over here in the face of our tremen- dous battle-ships if it was really their intention to make war upon us"
 There is @ feeling at the State De- partment, not born entirely of the imagination, that the Sagasta min istry ordered the dispatch of the torpedo fleet from the Canary Islands for the purpose of the moral effect such action would have upon the elec- tions which are about to come off in Spain. It is surmised that this was privately hinted by Minister Polo de Bernabe as part of the explana- tion which he made to the State De- partment to-day.
 The warlike preparations on the part of Spain are believed in many quarters to be for their moral effect at home rather than for the purpose of making war upon the United States. It is realized that the Sa- gasta ministry will have to show a bold front, even if it does not mean it, for it's own preservation, and as far as the administration here is concerned it would much rather see the present Government sustained in the forthcoming elections than have it fail. The authorities consider there is much more chance of a peaceful; outcome with the present Spanish ministry than with the Conservative party if it should again come into power on war wave.
 As ugly as the situation is, with the probability of its becoming even much graver, there is still feeling in the Cabinet that actual war with Spain may yet be averted, though the continued perfection of the com prehensive military and naval plans would indicate that the President thought war inevitable in the end.
 The possibilities of mediation at the time when the war clouds are darkest are being discussed. The suggestion in this mornings cable from Madrid that Spain would ask France to offer mediation when she finds that she must give up the island of Cuba or fight is regarded as a possible means of avoiding war. It is remembered, too, that the Her ald recently stated in Madrid dis patch that the Sagasta ministry hinted at the possibility of the inde- pendence of Cuba, with the sugges-