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can naval service is cited as a leading cause. Gloom and heaviness continued to prevail in commercial circles in England. Two Liverpool firms had failed in addition to those reported by the City of Manchester, Several failures had occurred in Manchester, including the house of Barrett & Wilson, calico printers. There was a dull and declining market for American securities in London. United States five- twenties, ex-coupons, show a decline of one and a half per cent. on the week. Erie and Illinois Central railroad shares gave way one dollar. The liabilities involved in the failures in Rio Janeiro and other towns in Brazil foot up eleven millions of pounds sterling. Peace was still delayed between the Germans and Denmark by the consideration of some minor question. Madrid journals urge the Spanish Government to retain possession of the Chincha islands as a pledge that Pern will afford satisfaction to Spain. The Emperor and Empress of Russia were staying