2nd Nov. SHANGHAI was full of warlike rumours yesterday, stimulated by "bunders" from the South and the North, and the news' that the Iphigenia' and Algerine had sealed orders not to be opened until they got to sea. No one of the rumours that passed from mouth to mouth at the Grand Stand was as serious as the news sent us by Reuter which we publish this morning. Great Britain is apparently preparing for war, although most of us ave Jelieved all along that the Fa-shode incident would be settled without fighting. The formation of a strong naval emergency squadron, the extraordinary activity reported in naval and military centres, and the statement, happily: as yet unconfirmed, that it is intended to mobilise the militia and volunteers, would seem to indicate that war with a first-class Power is close at hand. Our Government apparently fears that the French Government sees no cure for the crisis in France but a foreign war; for it seems hardly likely that these unusual measures have anything to do with the action which it is rumoured that certain Powers contemplate in China. We hope, however, that the measures are merely intended to show any Powers that may be contemplating the disturbance of the peace of the world that the British Lion is not to be caught napping; and to show that you are perfectly prepared for all even-be enemy to think again before pro-trialities often lepases your wouldceeding to extremities.
Text read from the printed page and cleaned; old type leaves the occasional error.