ate,
in order to preserve a good understanding between the Powers that have
interests in the Pacific Ocean.

_Second_, that annexation will endanger the rights which Japan has
acquired through her various treaties and contracts with Hawaii.

_Third_, that annexation might lead to the postponement by Hawaii of the
settlement of claims which Japan already has against her.

In Hawaii there is a strong desire that the Senate shall ratify the
treaty immediately, and put an end to all further question on the
subject.

Hawaii mistrusts Japan, and fears that she will do something to prevent
annexation unless our Government is prompt.

It is rumored in Washington that Japan and Spain are forming an alliance
to embarrass the United States in her dealings with both Hawaii and
Cuba.

It is felt that speedy action may be the best thing to prevent
complications.

The Government is seriously considering the advisability of sending
another ship to Honolulu. It is possible that the battleship _Oregon_
and the gunboat _Concord_ may both be sent to Hawaii.

The Navy Department realizes that annexation will necessitate a largely
increased navy, and Secretary Long will ask Congress to arrange for the
building of more cruisers and torpedo-boats.

* * * * *

On the occasion of the British naval review at Spithead, an illustration
was given of the short time it takes to turn a merchant vessel into an
armed cruiser.

England, despite her large navy, often has use for more ships than she
possesses.

To meet this demand she has placed a certain number of merchant vessels
on her Naval Reserve list. By this arrangement the Government has the
right to call out any of these ships when she has need for them.

At the time of the great naval review it was thought that it would be a
good thing to put this system to a test, and so several of the Naval
Reserve merchantmen were ordered to fit out as gunboats.

One of the vessels thus put into use was the _Teutonic_ of the White
Star line, one of the regular ocean steamers that ply between England
and America.

She arrived in Liverpool on June 21st, and immediately received orders
to transform herself into a war-vessel, and take her place in the naval
review at Spithead.

As soon as her passengers and freight had been landed her crew set to
work to take her war supplies on board.

A British naval officer had been sent from Portsmouth to superintend the
w