MOROCCO CRISIS.

BERLIN EXCITED-PARIS CALM.

HOPES OF COMPROMISE.

[FEOM OCR OWN CORRESPONDENT.] London, September 15. Although the war-cloud still hangs over Western Europe, it is difficult to believe that differences regarding Morocco will be allowed to provoke an European outbreak. France desires a free hand in Morocco, and apparently Germany will consent on certain conditions. What those conditions exactly are remains the secN-et of a few high officials. Germany is credited with, demanding a privileged economic position in Morocco, as well as a strip of the French Congo, but there has just, appeared in a semi-official Uerlin newspaper the statement that Germany is only asking for a free door for all nations in Morocco.

The German observations were received in Paris early in the week, and up to ] now the French reply has not been sent. It is known, however, in London that the forms put forward by Germany, while acceptable on certain points, are in others of a character which it is quite impossible for the French Government to concede. There .is reason to believe that although Garmany^agrees in principle to the proposed. French protectorate over Morocco, she has accompanied her consent by "reservations" which, if they were admitted, would completely nullify the political position of France in the Shercefian Empire, and render it possible for lhe, ; Kaiser's Government at any time to re-raise the whole question under the pretext of economic differences.

' Whatever may be the intentions of the German Government, the German people is highly apprehensive, and the Berlfn Bourse has .had. a bad attack of nerves. Saturday witnessed a collapse on the "Bourse which differed but little from an absolute panic. High-class securities of all sorts sustained disastrous declines, and the semi-official efforts to reassure investors were unavailing before the close of business. . Small depositors also showed an anxiety to get their savings into their own hands, and in the course of a few days the sum of £28,000,000 sterling was removed. Bankers declared that unless the present negotiations were speedily brought to a favourable conclusion the outflow would reach £40,000,000. Prominent Berlin financiers called on the German Chancellor, Herr von KiderlenWachter, and urged that the prolonged uncertainty was imperilling the German money market, not even the big banks being in a position to stand a run on their deposits. Public opinion in France remains calm and serene, and there is no sign that the panic on the Berlin Bourse will prove contagious. Frenchmen realise that by allowing themselves to be influenced by the nervousness of their neighbours they would only be playing the German game. The confidence of the Government and of the public is mutual. France can afford to " contemplate the future with comparative equanimity.

While there is reason to believe that the German reply is so detailed as to warrant the description of it as a "counter project," Franco is willing to consider it on its merits. But the French Government stands by the principles which it has repeatedly professed, and by the assurance which it has given and received both in. London and in St. Petersburg. If Germany remains obdurate France can always justify her attitude by a public statement of the German demands, and then wc shall all know why Germany has been so anxious to keep the conversations secret.