The force of misrepresentation and calumny which the peace party here have had to endure from the virulent and unscrupulous jingo press can be estimated by the manner in which they have misrepresented my warning to President Kruger. I knew, as every one who knew anything of the geography of South Africa must have known, that the obvious line of action for the Boers to adopt would be that of seizing the passes, and I warned President Kruger that to do so would alienate the sympathy of many of their supporters in this country and on the continent of Europe. My words were deliberately misconstrued, and it was asserted that I urged the Boers to seize the passes. Nothing further from the truth can be imagined. But, in spite of the difficulties with which we have had to contend, there is, undoubtedly, a large minority here who are firmly convinced that the war is an unjust one, and who regard the settlement by annexation as another wrong against which they will continue to protest. We shall go on working by all constitutional means for the restoration of the independence of the two republics, believing that by these means only can peace and prosperity exist once more in South Africa. We believe that we are working in a just cause, and shall hope in the not too distant future that we may be able to appeal to the justice of this people, who will then have recognized the folly and wickedness for which they have been made responsible. We do not doubt the future. We are sure that it is with us. It is true that the middle classes and the moderate liberals have abandoned their old watchword of “Peace, retrenchment, and reform,” but the radicals and socialists are standing firmly by these principles. I send you a copy of the socialist paper _Justice_, which expressed fairly the attitude of the democratic party. I have, as you know, opposed the growth of socialism, which I formerly believed to be inimical to freedom and progress, but I am considerably modifying my views. The power for evil of the lawless and conscienceless capitalism which is now rampant is so great, and entails such unlimited moral and physical degeneracy, that I am convinced some form of collective action is a necessity to put an end to its baneful influence. The history of this miserable war determines us to stand more determinedly by the principle of the substitution of arbitration for war. It becomes clearer and clearer that no permanent settlement can be based on war, and that, as between individuals, so between nations, magnanimity is not only morally desirable, _but it is the best policy_. I am taking a yachting holiday in Scotland, but we may be overtaken by a general election here at any time. Thanking you again for your letter, believe me to remain