Then, too, there is that vast loan which she has offered to China and which is creating a sensation among the European Powers.

England has taken a firm position with regard to the occupation of Kiao-Chou by Germany and the seizure of Port Arthur by the Russians.

She has openly sent two war-ships to each of these ports.

This does not mean that she wishes to provoke war. It is intended probably as a hint to Germany and Russia that if they go too far she is ready to fight.

THE EASTERN QUESTION!!!

Germany, however, has repeated that Kiao-Chou is to be a free port, and this statement is being echoed with satisfaction by the English press.

Nevertheless, the English papers show an astonishingly warlike spirit, and the English people are said to be delighted by the pluck and force which Lord Salisbury has shown in this crisis.

During the past few years Lord Salisbury has been accused of a willingness to make almost any concession to avoid dragging England into a war.