THE NAVAL SCARE.

Taranaki Daily News, Volume LV, Issue 76, 16 August 1912, Page 6

THE NAVAL SCARE.

INGLO-GERMAN RIVALRY. FEELING OF UNEASINESS. EUROPEAN MARKETS UNSETTLED. London, July 27. The feaTa of an outbreak of hostilities with Germany have become acute in Great Britain, unsettling aa they do securities and the markets of Europe, and acting as the principal cause in 'the fall of Consols and thc ( decl.ine of German Government securities and the bonds of every other great European Government.

Tt was expected that the British Government would appoint a commission t# consider the whole problem of Consols, but there cannot be much hope that the fall will be stopped unless Germany agrees to restrict the growth of her armaments.

There is a Teal fear abroad that "war will Ibe inevitable if Germany continues to build battleships at the rate proposed, and the geneial uneasiness regarding the peace of Europe is heightened 'by the naval construction activities of Austria and Italy.

The condition of Turkey also is apparently causing great apprehension. Notwithstanding all this disquietude, trade continues good', but business on t-he Stock Exchange is dull. )

MEETING THE MENACE. BRITAIN'S HUGE EXPENDITURE. London,, July 27. The question as to whether the Government is building enough iwarsfhips to prevent Germany from grasping the supremacy of the sea was revived in the House of Commons last night. Admiral Lord Charles I'eresford W the attack on behalf of the Unionists, the lighting .peer making a speech in which he accused Mr. Churchill of saying much but doing little to prevent a conflict that was inevitable if Germany were permitted to outstrip Britain in the building of warships.

Mr. Churchill declared that there •was no cause for a panic. The Oorerameat was spending £45,000,000 this year, and it would .spend more next year. ' The personnel of the navy would be raised to 141,150 .next year, and to 1411000 in tlve following year. '■Some of 'tlio London newspapers are demanding that Britain should build an Armada of Dreadnoughts to overawe Germany.

CHURCHILL'S NOTE Ob' ALARM. DEPRECATED HV MANCHESTER GUARDIAN. London, July 27. Tlie Manchester Guardian depreeat.es what it describes as t'lie violent note of alarm sounded flhy the Churchill speech, and urges a constructive policy of friendship willi Germany without sacrifice .of the existing friendship with France. "The hope that the colonies will extricate,. us from our difficulties," the paper goes on to say. "seems to be wildly out of proportion. The colonics for 'a long time, to come will do well if they can make themselves responsible for their own naval defence!. Their, aid is conditional on a serious change in the Empire's constitution, which is full of difficulty, and, wo think, grave inconvenience. The matter cannot be settled on any sentimental impulse.

"A parliamentary federation is quite out of the question for the present, as colonial representation could come only by the admission of the colonies to a share of executive control. Tiie result would mean increased independence of the Executive, which would aggravate the existing evils of loss of control of foreign affairs by Parliament."

MR. BORDEN'S VISIT TO PARTS. WHAT FRENCIT-CANAD lANS MUST SEE. London, July 27. With respect to Mr. li. L. Borden's visit to Paris, the Daily Mail remarks that anything to improve the relations Vtv.-en Canada and Fiance will aid the Empire. The Dominion Premier's visit will emphasise the fact that Britain and France have long since ceased to be divided. French-Canadians, adds the Mail, must, see that in strengthening 'the defences of the Empire they are also pledging the securitv of France.