It was undoubtedly a severe blow to British prestige in these parts, and the Germans in all the large towns were not slow in making the most of this temporary success in order to advance their own interests. The rumours that were circulated caused no little perturbation amongst the neutral shipping agents, who feared that von Spee would lose no time in attacking British trade, and that those cargoes which were consigned to Great Britain would be in jeopardy. Insurance rates rose with a bound, and it is said that the Germans went about openly deriding the British and causing the most fantastic articles to be inserted in the local Press. The exaggerated reports that were published, both of the action and of its effects, certainly lends colour to this source of information. It will be interesting to consider what von Spee would have done if he had missed Admiral Cradock and the action off Coronel had not been fought. In view of his superior speed, von Spee would in all probability have continued on his southerly course and rounded Cape Horn, leaving Admiral Cradock behind him. There seem to be grounds for supposing that he might go to the Cape of Good Hope, but the campaign in German South West Africa could scarcely be said to be progressing favourably for the Germans, and it is not unreasonable to suppose he would have preferred to go north along the eastern side of South America to harass our trade. It is legitimate to suppose that in this case he would not have delayed to attack the Falkland Islands, with Cradock's squadron on his heels and Stoddart's ships converging on him from the north; in fact, it would have been suicidal, for the wireless station there would have given our ships warning of his approach, and the delay might have enabled our two forces to unite. From Stoddart's squadron alone he had nothing to fear, and most likely would have welcomed an opportunity of bringing it to action. The presence of the _Defence_ at Montevideo would certainly have been known to him at that time, and he would probably have hoped to intercept her before she joined Cradock. Had all this come to pass, the Germans might then have separated, and when it was found that the theatre of operations in the South Atlantic became too hot for them, they might have endeavoured to make their way home after doing as much damage as possible to our commerce.