It was reported to Parliament at its sitting at Bristol yesterday that the Cabinet had refused to entertain any idea of paying the indemnity demanded by Germany, and that their reply to Von Kronhelm is one of open defiance. The brief summary of the speeches published shows that the Government are hopeful, notwithstanding the present black outlook. They believe that when the hour comes for the revenge, London will rise as a man, and that Socialists, Nonconformists, Labour agitators, Anarchists, and demagogues will unite with us in one great national patriotic effort to exterminate our conquerors as we would exterminate vermin. Mr. Gerald Graham has made another great speech in the House, in which he reported the progress of the League of Defenders and its wide-spread ramifications. He told the Government that there were over seven millions of able-bodied men in the country ready to revolt the instant the word went forth. That there would be terrible bloodshed he warned them, but that the British would eventually prove the victors he was assured. He gave no details of the organisation, for to a great measure it was a secret one, and Von Kronhelm was already taking active steps to combat its intentions; but he declared that there was still a strong spirit of patriotism in the country, and explained how sturdy Scots were daily making their way south, and how men from Wales were already massing in Oxford. The speech was received on both sides of the House with ringing cheers when, in conclusion, he promised them that, within a few days, the fiat would go forth, and the enemy would find himself crushed and powerless. "South London," he declared, "is our stronghold, our fortress. To-day it is impregnable, defended by a million British patriots, and I defy Von Kronhelm--indeed, I dare him to attack it!" Von Kronhelm was, of course, well aware of the formation of the Defenders, but treated the League with contempt. If there was any attempt at a rising, he would shoot down the people like dogs. He declared this openly and publicly, and he also issued a warning to the English people in the German official "Gazette," a daily periodical printed in one of the newspaper offices in Fleet Street in both German and English. The German commander fully believed that England was crushed; yet, as the days went on, he was puzzled that he received no response to his demand for indemnity. Twice he had sent special despatch-bearers to Bristol, but on both occasions the result was the same.