gree of efficiency. The Brussels Conference has, therefore, merely admitted and regulated a fact which exists in the nature of things, and the necessities of an epoch. So far from restraining the right of national defence, it tended, on the contrary, to reinforce it, by rendering it, on the one hand, more effective, and depriving it, on the other, of the consequences of the abuse of power, and assuring to it a legal treatment by the enemy. The conditions proposed

with that object have been reduced to their simplest form of expression. They would be easily applied, and are by no means onerous. Their special object is to distinguish the citizen who defends his country from the marauder, the plunderer, and the assassin, and to assure to the former the respect which is due to him, and to save him from the severe measures which the laws and usages of war authorise in regard to the latter.

6th. As to the method of conducting the deliberations of the Conference, the Russian delegates proposed to formulate only the points agreed upon, in order to come to a general understanding. But, as sharp divergencies of opinion arose on questions of the most essential importance, they proposed to record in the protocols all the different views, with the view that they might obtain from those points on which they were not in accord the light necessary to guide them to any important agreement. And even though the Conference may have had no further result for the moment, its labours will remain as a serious inquiry as to how the necessities and consequences of war are regarded, at this moment by civilised States. Its protocols will be consulted, in case of war, as evidence of great moral value. One may be assured that the work will not be fruitless, and that, developed and sanctioned by experience, it will help to determine the laws of war to the advantage of civilisation and humanity; and on that account it is to be regretted that the voice of England should not be heard in the Conference.

7th. The special articles of the project regarding which an agreement was finally arrived at by mutual concessions, so far from being restricted to the sanction of practices generally admitted, all gave rise to divergencies of opinion and laboured discussions. The fact that agreement was only arrived at by mutual concessions proves it sufficiently. Nothing demonstrates more clearly, on the other hand, how obscure the law of nations is even in respect of questions which seem at first sight the most simple and the least open to dispute.

8th. With regard to the chapter on reprisals, it was not the only one which might have given rise to burning contentions. There was scarcely one of the subjects discussed which would not have provoked irritating questions in recent wars. The Russian Government had confidence in the intelligence and the goodwill of the Cabinets to which it appealed, and that confidence was perfectly justified by the conduct of their delegates. There is so much the greater reason to believe that it would be the same in case of a second réunion. That chapter was not suppressed for that reason, but because several delegates preferred to risk an evil for which there are no limits rather than recognise it, even for the sake of restraining and reducing it. Reprisals will therefore continue as one of the most terrible necessities of war. They are recognised by the law of nations, confirmed by experience-only they will continue to be without rule or limit. It remains to be seen what either conquerors or conquered will gain thereby in the future. The English despatch affirms that in suppressing that chapter the Conference has eluded one of its principal difficulties-that of determining how to enforce rules established. It admits that the only means is to use reprisals in case of their violation. That argument applies to the whole right of nations at present existing. It is the best proof of its imperfection, and it is remarkable that on the one side the right of nations refuses to recognise the principle of reprisals, and on the other that the principle is accepted as the only sanction for the laws of war. It was the object of the Brussels project to remedy that state of things by giving moral sanction, derived from reciprocal engagements, to the laws and usages of war. If, agreeably to that project, the principles of the law of nations, elucidated and completed as far as possible, were placed under the guarantee of declarations publicly exchanged between the Governments, and by obligation made known to their armies, there is reason to hope that the number of cases in which a people is forced to resort to reprisals would be reduced.

9th. If, nevertheless, the English Government declares in conclusion that it will uphold the principles of international law upon which it has hitherto acted, and that it will impose the same obligation on its allies, it would be desirable that it should complete that declaration by saying what those principles are. How will England and its allies interpret those doubtful points and cover those deficiencies in international law which were the object of the discussions

at Brussels? How do they understand, according to international law, the reciprocal rights and duties of invaders and invaded; of the occupying army and the inhabitants; of aggression and national defence; and of the relations between an enemy's military power and the persons and property of private citizens? What, finally, are the acts of war in the past according to which one may judge of its practice in the future? The vague asser

tion that the law of nations governs all these capital questions, and that the English Government declines to assist in clearing it up, even by a simple deliberation in common, has not prevented, and will probably not diminish, aggressive wars. It seems doubtful whether it will protect more effectively than in the past the patriotic defence of invaded nations against the rigours and abuse of power.

The Report (published in July, 1875) of the Select Committee, appointed by the House of Commons to inquire into the circumstances attending the making contracts for loans with various foreign States, extends over fifty pages. In it reference is made in detail to the circumstances connected with the launching of the Honduras, San Domingo, Costa Rica, and Paraguay Loans, and the Committee express strong opinions on the unsoundness and deceptiveness of the system adopted, especially in the creation of fictitious markets on the Stock Exchange. Something may be attributed, it is argued, "to the proceedings of the Committee of the Stock Exchange, which gives, by granting a quotation, a certain prestige to a loan which neither the very slight superficial investigation on which the grant of a quotation is founded nor the nature of the tribunal seem to warrant." The Committee also draw attention to the operation of syndicates, under which stock is allotted to the public at a comparatively high price, as well as to the system of drawings; it being remarked that the practice of paying 1007. for a bond issued, say at 757., "must prove disastrous to the borrowing Government, which has thus to repay at a heavy loss borrowed capital before there has been time to utilise it, and in some cases before the whole of it has been received." The Committee make various recommendations with a view to provide a remedy against the evils of the present system, the principal of which are contained in the following extract :—

Your Committee have had their attention called to the system of "drawings" which has lately been extensively applied to foreign loans. It is similar in its effect to the old lottery schemes, and its operation has undoubtedly tended to increase speculation, until it has become gambling,

LOANS COMMITTEE.

in these loans. The issue price of loans to States of doubtful solvency is frequently from 20 to 30 per cent. below the amount contracted to be repaid. Thus, a 100%. bond may be issued at 757.; semi-annual drawings are announced of a certain number of bonds to be repaid at 1007. These drawings often commence within six months of the issuing of the loan, and sometimes before all the instalments are paid in respect of it by the allottees.

By these means the public are tempted to apply for or purchase the stock, in the hopes of drawing the prize which they will gain by receiving 100l. for a bond for which they have only paid 75. This practice must prove most disastrous to the borrowing Government, which thus has to repay at a heavy loss borrowed capital before there has been time to utilise it, and in some cases before the whole of it has been received. It is apparent that this system differs essentially from that of a properly constituted sinking fund, through which provision is made by the borrowing State for paying off its debt by purchasing annually a certain number of bonds at the market price of the day. There is difficulty in suggesting the exact terms of any legis lative enactment by which this evil can be remedied. But your Committee aro of opinion that if all such drawings were prohibited until after the expiration of eighteen months from the payment of the last instalment due in respect of the loan, much would be done to check the gambling transactions to which reference has above been made.

Your Committee have carefully considered the bill for the compulsory registration of foreign loans, and have examined two members of the House whose names are on the back of it. They do not think that it will be expediert to proceed further with the measure. Registered

documents are seldom inspected until the mischief against which they might have guarded is done, and are more useful in furnishing weapons for litigation than safeguards against loss. To declare unregistered documents to be null and void would be certain to produce much confusion and injustice; and yet without such a provision persons entering into questionable contracts and combinations would run the risk of actions or penalties rather than disclose matters which they have the greatest interest to conceal. It is, besides, easy for such persons to transport themselves beyond the jurisdiction of English courts, as the evidence taken before your Committee proves. Your Committee prefer to trust to the plan of requiring certain matters to be stated in the prospectus, which appears to afford the best security for full disclosure which the case admits of. The Companies Act of 1867 affords a precedent for requiring certain things to be stated in the prospectus, and for making false statements or wilful omission a ground for a civil action.

Your Committee think this principle might be applied in the case of a prospectus for a foreign loan.

They think the prospectus should state (among other things) :-1. The authority from the borrowing State. 2. The public debt of the State. 3. The revenue of the State for the preceding three years. 4. In case of special hypothecation a full statement of the revenues, lands, forests, public works, or other property upon which the proposed loan is secured, and of prior charges, if any, upon such security. 5. A statement that no part of the proceeds of the loan is to be applied in buying back any of the stock, or, as the case may be, the amount,

if any, which the borrowing Government reserves to itself the right to purchase and cancel. 6. The funds out of which the interest is to be met during the next five years.

Your Committee have been much impressed, in the course of their inquiries, with the great importance of the functions exercised by the agent or contractor for a foreign loan. Considering that in several of the cases which they have examined there has been something closely resembling repudiation, based upon the alleged misconduct of the agents in this country, they cannot escape the conviction that the proper discharge of these duties is a matter of importance, not only to the subscribers, but to the nation at large. They submit to the wisdom of Parliament whether it is proper that an office, on the due exercise of which depends in no small degree our good understanding with the borrowing country, and our reputation for honesty and good faith, should be exercised by any person who may choose to undertake it, or, worse still, to whom the representative of some petty or insolvent State may choose to entrust it.

In conclusion, your Committee feel bound to express their conviction that the best security against the recurrence of such evils as they have above described will be found not so much in legislative enactments as in the enlightenment of the public as to their real nature and origin. Your Committee hope that the history of the foreign loans embodied in this report will tend to enlighten the public, and to render it more difficult for unscrupulous persons to carry out schemes such as those which, in the cases on which it has been the duty of your Committee to report, have ended in so much discredit and disaster.

with the land ice and some bergs. We tacked on the edge of the ice and stood to the north-west. On the 29th (lat. 61 N. and long. 50.43 W.) during the morning we steamed through a quantity of loose sailing ice. A strong breeze springing up from the eastward towards the afternoon, which freshened to a gale from the northward, obliged us to stand off the land amongst a great quantity of heavy field-ice; after laying to during the night, under close-reefed topsails, and occasionally nearing to avoid the driving pack, which was going to the southward in heavy streams at the rate of two or three knots; some of the ice, however, was loose enough to be sailed through, and, there being no opening into clear water, I got up steam on the morning of the 30th, and, under close-reefed topsails and reefed courses, beat to windward through it, with the object of reaching the land water. The weather moderating, this was accomplished in the evening of the same day, having passed through some heavy pack ice. On the 1st inst. we again steamed through some large fields of sailing ice. When abreast of Goathaab, on the 2nd inst., at seven p.m., we sighted the "Alert," and closed this morning, as per signal. With the exception of the loss of the one boat before-mentioned, I have no defects or damage to report, and have the honour to inclose a copy of the ship's log from June 13 to the 1st inst.

I have the honour to be, Sir,
Your obedient servant,
H. F. STEPHENSON,
Captain.

No. 2.

'Alert," at Disco, July 15, 1875. SIR, I have the honour to inform you that H.M. ships under my command left Bantry Bay on June 2. The " "Valorous arrived at this port on the 4th, and the Alert" and "Discovery" on the 6th inst. After leaving the Irish coast, finding that the "Valorous" could not keep station while we were under sail alone, I directed her to part company, and make her voyage independently. During the passage we encountered three consecutive gales from the westward, and after passing Cape Farewell one from the northward, each accompanied with high seas. Owing to the heavy lading of the Arctic ships they were extremely wet and uneasy, which necessitated the hatchways to be frequently battened down; otherwise they behaved well. The "Alert"

The "

Valorous," having economised her coal as much as possible, has been able to complete each of the Arctic ships with as much as they can carry, and has remaining for her return passage a quantity equal to that expended during her outward voyage. All the provisions and stores brought here by the "Valorous" for our use have been taken on board, and we are now complete in all respects for three years from July 1, 1875.

After passing Cape Farewell each ship fell in with loose pack ice from fifty to sixty miles south-west of Cape Desolation, with a clear sea to the westward of it-it was the débris of very thick ice, and had evidently been carried round Cape Farewell from the east coast of Greenland. The ice extended north as far as latitude 62 deg. 30 min., since which none has been sighted within sixty miles of the coast; there has also been a remarkable absence of icebergs.

Mr. Krarup Smith, the inspector of North Greenland, and the other Danish officials have been extremely obliging in giving me every information in their power and in providing for our wants. Mr. Smith has arranged for my being supplied with all the dogs we require. Twenty-five have been received from Disco, and twenty are to be ready on our arrival at Ritenbenk; the rest will be taken on board at Uppernivik. An Esquimaux accompanies the expedition from Disco, and I think it probable that Hans, who was in the "Polaris" with Captain Hall, and is now at Proven, will also be willing to join me. I would respectfully suggest that Mr. Smith should be officially thanked for his ready compliance with all our requirements and his courteous behaviour.

Finding that it was absolutely neces sary that at least one Assistant-Paymaster should accompany the expedition, I have ordered Mr. Thomas Mitchell, of the "Discovery," to remain on board that ship to superintend the victualling of the two vessels. I have ordered Mr. George Egerton, sub-lieutenant of the "Alert," to take charge of the provisions of this ship, with the same remuneration as the officer in charge of stores received.

I leave this port for Ritenbenk to-morrow, and intend to call at Proven and Uppernivik on my passage north.

Letters will be left at the latter settlement for conveyance to Europe, via Copenhagen.

It is reported that the last winter has been mild in this neighbourhood, but the spring very backward, which I trust will prove to have been caused by the early break up of the ice farther to the north.

The health of the expedition is excellent. There is no one sick on board either vessel, and the utmost hope and enthusiasm for the success of the work allotted to us prevails.

In the orders for the guidance of the expedition it is directed that documents are to be deposited due north of the cairn marking their position. As a mistake might arise in calculating the variation of the compass, I have issued directions that the documents are to be deposited magnetic north, and 20 ft. magnetic north of the cairns.

During my stay at Disco I inspected the store of provisions belonging to the American Government, but had not time to open any of the packages to ascertain if the contents were in good order; but, from the appearance of the outside, I should expect them to be in a fair state of preservation, considering the time they had been exposed. The store is dry, and each package is clear of the ground. As the United States Government may like to know what is in the store, I enclose a nominal list of the packages obtained from the Danish officials and inspected by the officers of this ship. The former have taken great trouble to prevent the stores deteriorating.

I have the honour to inclose a copy of the log and track-chart of H.M.S. "Alert" and proceedings of H.M.S. “Discovery " while absent, from June 13 to July 1, 1875.

I have the honour to be, Sir,
Your obedient servant,

J. S. NARES,

Captain.

H.M.S. "Pearl," at Sea.

(Lat. 25 deg. 2 min. S.; long. 159 deg. 7 min. E.)

Aug. 19, 1875.

SIR, I have the honour to report for the information of the Lords Commissioners of the Admiralty my proceedin s since the date of my last general letter, No. 212, dated July 31, 1875. I left St. Bartholomew Island on Aug. 2, and proceeded northward, calling at Cape Lisburn and St. Philip, and St. Iago Bay, in Espiritu Santo, on the 3rd and 4th, Mota on the 9th, and Vanikoro on the 11th, and arrived off Carlisle Bay, in Santa Cruz Island, on the 12th inst. I wished particularly to communicate with Carlisle Bay, where the "Sandfly" was attacked in September last year, in order, if possible, to open a friendly intercourse with the natives. I therefore steamed off the entrance of the bay in the "Pearl," and finding the harbour too small for the ship to enter, I took two cutters and a whaleboat into a village fronting the entrance. I landed with precaution, accompanied by several of

ficers, made some presents, and bartered with a few things the natives brought down. The natives were in good numbers; several of them had put off from different parts of the beach in canoes, some of which met the boats on their

way to the shore. After remaining on shore three-quarters of an hour, and feeling satisfied with the advances which had been made, I ordered the party to prepare to leave for the ship. Every person was in or close to the boats except myself, Lieut. Harrison, R.M.L.I., and my secretary, Mr. Perry, when a man standing between two huts about four yards from me fired an arrow which struck me on the left side. I turned at once to the boats, which shoved off, receiving at the same time two or three flights of arrows, which struck five of the men and myself a second time, on the head. To stop the attack a few shots from revolvers and rifles were fired, and the flights of arrows ceased, one native having been struck by our fire. I then proceeded on board. My first impulse was not to molest them; but, on considering the case, and being satisfied after