ecessary to adopt the English standpoint in
order to understand the line of thought which guides the English
politicians. I believe that the solution of the problem is to be found
in the wide ramifications of English interests in every part of the
world.

Since England committed the unpardonable blunder, from her point of
view, of not supporting the Southern States in the American War of
Secession, a rival to England's world-wide Empire has appeared on the
other side of the Atlantic in the form of the United States of North
America, which are a grave menace to England's fortunes. The keenest
competition conceivable now exists between the two countries. The
annexation of the Philippines by America, and England's treaty with
Japan, have accentuated the conflict of interests between the two
nations. The trade and industries of America can no longer be checked,
and the absolutely inexhaustible and ever-growing resources of the Union
are so prodigious that a naval war with America, in view of the vast
distances and wide extent of the enemies' coasts, would prove a very
bold, and certainly very difficult, undertaking. England accordingly has
always diplomatically conceded the claims of America, as quite recently
in the negotiations about fortifying the Panama Canal; the object
clearly is to avoid any collision with the United States, from fearing
the consequences of such collision. The American competition in trade
and industries, and the growth of the American navy, are tolerated as
inevitable, and the community of race is borne in mind. In this sense,
according to the English point of view, must be understood the treaty by
which a Court of Arbitration between the two countries was established.

England wishes, in any case, to avert the danger of a war with America.
The natural opposition of the two rival States may, however, in the
further development of things, be so accentuated that England will be
forced to assert her position by arms, or at least to maintain an
undisputed naval supremacy, in order to emphasize her diplomatic action.
The relations of the two countries to Canada may easily become strained
to a dangerous point, and the temporary failure of the Arbitration
Treaty casts a strong light on the fact that the American people does not
consider that the present political relations of the two nations are
permanent.

There is another danger which concerns England more closely and directly
threatens her vitality.