e Nile.

The last report says that Colonel Parsons, on his way to take Kassaba
from the Italians, met King Menelik. The King was very angry because the
town had been surrendered to the Egyptians. He claimed that Kassaba
belonged to his territory, and he was then engaged in organizing an army
to fight for what he considered his right.

The situation in Egypt is further complicated by the report that General
Kitchener's Soudanese troops, in whose fighting qualities he has had
great confidence, have shown signs of dissatisfaction.

If they were to rebel against England's authority at this time, the
consequence might be very serious.

* * * * *

Just now England is under such terrible expense that it is thought that
her present exchequer is in danger of exhaustion.

She is sending forces to the Nile to settle the Egyptian troubles there,
and she has the uprisings on the Indian frontier, which are likely to
cause her considerable expense.

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.

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.

* * * * *

A writer in the New York _Sun_ has lately published a very able and
interesting article on the relation of the United States to the present
crisis in the East.

In this country we have been so absorbed in watching the rivalry between
the European Powers over China that we have given very little thought to
its effect on ourselves.

The writer in _The Sun_ shows that it may affect us very seriously.

He does not beli