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closing remark, it may perhaps be added that, provided the investment of Port Arthur be satisfactorily accomplished by sea and that Vladivostock were enclosed by ice, the estuaries of the Yalu and Liao Rivers enable an admirable line to be taken up, from which the Russian position throughout Manchuria may be very readily threatened. Speculations as to the development of the campaign upon land are, however, quite absurd until something is known of the results of the naval engagements with which the war must open. Meanwhile the painful familiarity with the costs of war which distinguishes the British taxpayer has directed no little attention to the financial position of either country. An eminent German financier, interested in the public debt of Russia, lately explained to me that a very large proportion of the moneys, which have been raised for the construction of the Russian inter-railway communications in addition to the Trans-Siberian and Manchurian Railways, has been set aside from time to time to supplement her war chest. These sums, added to those collected by Count Mouravieff with the assent of M. de Witte, and including the large balances which have accrued to the State by departmental economies during the past year, represent approximately a capital of one hundred millions sterling. Against this accumulation it is said that the financial position of Japan is most favourable. There is, I believe, a specie reserve in the Central Bank which amounts to 113,000,000 yen, plus some 40,000,000 yen in London. Moreover, the bank's note-issuing margin is 35,000,000 yen, which will be larger after the New Year. The Treasury has three capital funds, amounting together to 50,000,000 yen, besides some millions in London remaining from the bond sale of 1902. Finally,