This policy of England is, on superficial examination, not very comprehensible. Of course, German industries and trade have lately made astounding progress, and the German navy is growing to a strength which commands respect. We are certainly a hindrance to the plans which England is prosecuting in Asiatic Turkey and Central Africa. This may well be distasteful to the English from economic as well as political and military aspects. But, on the other hand, the American competition in the domain of commercial politics is far keener than the German. The American navy is at the present moment stronger than the German, and will henceforth maintain this precedence. Even the French are on the point of building a formidable fleet, and their colonial Empire, so far as territory is concerned, is immensely superior to ours. Yet, in spite of all these considerations, the hostility of the English is primarily directed against us. It is necessary 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.