New-York tribune., 1905-08-20
LONDON PREDICTS PEACE
THROUGH COMPROMISE.
Special BY French Cable to IN. tribune,
Copyright 1905. by The Tribune AssOciation.>

Copyright, 1905. BY The Tribune Assoeiation)
London. Aug. 19.-whiie pessimism has been
the prevailing tone in the dispatches from Ports
mouth. the Stock Exchange barometer has
nointed toward peace throughout the week.
There was e mo1nentary depression yesterday
when runors Of Count Lamsdorfs resignation
zere hulleuned; but this was followed by re-
covery when the reports were discredited. and
.he Cars manifesto containing an outline of
constitution was published and interpreted as
,onoession which would reconcile his subjects 10
sn inglorious peace.
consols have risen slowly. but steadily. and
hoth japanese and Russian securities have ad-
vanoed. Spectators and investors have not
besn Influenced by the gloomy forecasts OF cor
-ssnondents who have assumed that the failure
= the negotiations is inevitable. They have per-
sssa II buying stocks because they are con-
,5nced that q dozen or more great bankers in
Europe believe that peace is coming.
This feeling OF optimism is shared by the dip
Innate circle here and by prominent members
- the civil service in touch with the associates
- the foreign Office. They have not lost faith
n peace even when so accomplished an observer
ss Sir Mackenzie Wallace has described the
prospect as hopeless. They have contended that
IRE japanese demands for an indemnity and the
cess.on Of SaghaIien were known before n
vt-te left ST Petersburg. and that the Car
would not have sent him across the Atlantic
unless both questions were open to discussion
with The probability Of ultimate compromise
COMPROMISE LIKELY.
v-.a- -hsv now expect is the withdrawal OF
-be Japanese demands for the prohibition OF a
naval armament u the Pacific and the sur
-erder cs the interned ships IN return for the
-ession Of Saghalien and compromise Of the
money question. The adjustment of the IN
de-nnicy does not seem difficult 10 hnanciers
here since the heavy burdens Of the war have
not impaired the economic development Of japan
no- tnte-fered with its prosperity and foreign
trade. The var has been financed so well and
re charges on the new debt OF S410OO0O00 so
While II wirte has been anxious TO impress
the world with the strenuous resistance which
he Is offering 70 the japanese demands, the
Car is making the best possible preparation
for peace by a decree granting a constitution.
English comments on the manifesto are favor
shle The powers Of the State Council are re-
st-sctsd and the autocracy remains in the saddle;
but long advance has been made toward a
constitutional government. even II the aspira-
tons Of the Moscow Zemstvo Congress are not
fulfilled n detail
Lucien VOLTS protest against the credulity
OF Hebrew bankers il proposing 70 lend money
10 the Cars government possibly reflects Ger
man dissatisfaction with impending peace with
which the Kaiser has little TO do. King Edwards
reluctance 70 meet the Kaiser OF his way TO
Mar1enbsd IS contrasted with the facility with
whicA al interview was arranged with the Duke
Of Cumberland. the wandering heir 10 the lost
throne OF Hanover.
The agreement OF German bankers to lend the
Sultan of Morocco S2.5OoOOo is regarded as
fresh proof o< the Emperor's discomfort with
the world OF politics, since they are hnanciers
usually employed by the Berlin government