New-York tribune., 1899-12-31
THE NEWS OFTWO CAPITALS
LONDON.
FINANCIAL BURDENS OF THE SOUTH
AFRICAN WAR.
THE QUESTION OF FooDsTUFF SEIZURES
PORTUGAES UNWILLINGNEss TO SELL
DELAGOA BAY-ART SHOWS.
ny CABLE TO THE TRIpr'Sr

lDY CABLE TO TRIBUNE
London. Dec. 30.-This is Moralists' Day. and
everything is under review from high finance
and Boer hunting TO drama, literature and horse
racing. The moralsts themselves are demoral-
lied when they attempt to reconcile the most
sanguinary and costly war in recent British
annals with Lord Pauncefote's championship Of
the principles OF peace at The Hague Congress,
and they have only the opening chapter OF that
war to summarize, with the record that England
was unprepared and entrapped in an ambuscade,
without a sequel OF disasters retrieved and the
empire delivered from deadly peril. The moral
lists have trouble enough in finding cause for
cheerfulness in the tangled skein OF the events
Of single confusing and dlsagreeabe year
without facing the problems Of mathematics
and chronology. and attempting a perspective
view OF the receding ranges OF the nineteenth
century, with their many historical landmarks.
That is task deferred by common consent for
another twelvemonth.
The economic writers are perhaps the loudest
croakers, for they cannot close their eyes to the
Industrial and financial tendencies OF a war OF
unexpected magnitude. The displacement of
more than hundred thousand workers in
wolves rise in wages and industrial disturb
ance, and inevitable increase in the cost OF liv-
ing. For the first time in nine years there 10 a
per cent bank rate. and the dearness of money
paralyzes business and impovershes industry.
Money may be cheaper during the opening
weeks Of the new year, with the release Of divi-
dends and the accommodation provided by the
shipment OF gold from New-York but the keen
est observers convinced that this relief will
be temporary, and that the burdens upon capt.
tai and industry will be increased by official
methods of financing the war and by the con-
tinued pressure OF the scarcity Of gold.
The Bank of England will be on trial during the
next year. Although 1t has always been regarded
founded upon solid rock II has shown its in
ability during recent years to retain possession
Of any portion OF the immense stock Of
gold which has been added to the worlds work.
ing reserves; and now that the Transvaal sup
ply has been cut off 1t is question whether
even a high rate of interest will prove strong
enough to attract bullion from foreign markets.
Two millions sterling have come from America
during the last week. but ten more are needed
for home use, and immense reserves are re-
quired for carrying out the Viceroy's gold
standard policy in India.
Treasury methods OF war finance are still
kept in the dark. The Chancellor Of the
Exchequer has announced a small issue OF
Treasury bills early in the week, to replace
maturing bills for purposes. and there Is
some evidence that he intends to persevere In
using ordinary revenue for meeting exceptional
expenditures on a large scale. The war VIII
TO have what little popularity IT has
II the burdens are not carried forward and sad
died upon a future generation by large In
crease of the national debt.
Rumors OF Cabinet reorganization are In the
air, but 1t is not probable that there will be any
changes unless General Butler meets with sec
ond disaster. Lord Lansdowne would then be
marked out for slaughter and the Chancellor OF
the Exchequer would be likely 10 follow him.
The strength OF the Cabinet now lies In four
men-Salisbury Balfour, Chamberlain and
Goschen. These four leaders are at their best
where they are and no substitute can be found
for any Of them.
The persistent rumors that Lord Salisbury Will
retire from the Premiership, as well as the For
elgn Office and that the Duke OF Devonshire
will succeed him at one post, and Lord Rose
berry at the other. idle inventions. The
Duke OF Devonshire has steadily lost influence
during recent years and could not lead the
Unionist party. and Lord Rosebery is embar-
rassed by a swarm OF superservceabe friends
who are always nominating him for any office in
sight. whether in the gift OF one party or the
other There are weak men In the Cabinet,
notably Lord Lanedowne. who has talent for
consulting private partisans instead of expert
enced military advisers. and also Sir Michael
Hicks Beach, who brings a small mind to bear
upon the solution of large and complex ques-
tions: but there will be no immediate chances
Of promotion for younger men like Mr.. George
Wyndham unless the British arms are over
whemed with disaster in Natal, and 1t becomes
necessary to throw oveIb board one or more
Jonahs.
Sir Charles Dixie In to-days Chronicle vent
ures upon a shrewd explanation OF the Anglo
German agreement respecting the portuguese
possessions n East Africa. He contends that
there has been agreement in existence for
two yeans and that II relates to Deagoa Bay,
but that 1t Is what conveyancins lawyers de-
scribe as An escrow deed which can have no
binding force until 1t is executed. This is the
view which is entertained In diplomatic circles;
Great Britain and Germany have arranged
scheme Of partition which will go into erect
whenever Portugal is willing to sell out her
possessions in that quarter. Portugal does not
appear to be in any haste to do this. and con-
seouentlv the contract for the extension Of Ger
man East Africa TO the Zambesi and the Brlt-
ish occupation Of Delagoa Bay is in a state Of
suspended animation.
The Portuguese policy is Ineligible; the sale
NJ her dependencies In East Africa will be the
sign that Portugal is going out OF business as
n colonial Power as Spain has been forced TO do
The Portuguese Government Is not ready 10
take this step The fact that considerable pos
sessions are retained in Africa and Asia when
Snain has been forced to relinquish her colonies
IN the East and West Indies is a source OF salts
faction and pride in Lisbon. The cession OF
Delagoa Bay, when It's Importance has been
vastly increased by the discovery Of gold fields
and the outbreak OF race conflict for su-
premacy in South Africa. would be an unpopular
policy. which might provoke revolution In
Lisbon and overthrow the House of Braganza-
into the background, with a single exception
the claim urged by the American press
that neutral property. especially foodstufrs. is
exempt from seizure In wartime. The Man