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Show SITUATION CRITICAL. , InKurgenti flnrronnd Manila Waiting to Attack American Force. Manila, Jan. t4.r-Tbo situation hero Is undoubtedly critical, but Major-General Major-General Otis has It villi In hand and thero Is no such certainty of trouble as many believe. Tho rebels aro concentrated concen-trated on tho outskirts of the town and their leaders have Issued strict orders that they shall act only on tho defensive. defen-sive. 1 An accident might prcclpltato trouble, but the Idea of a rebel attack upon Manila Is ridiculous, as tho Americans control the! position. On Wednesday n false alarm, duo to trivial Incidents occurring simultaneously simultane-ously In opposite parts of tho city, led to a general call to (too United Slates forces. In fifteen nllnutcs tho entlro city was covered. Tho promptitude of tho Americans, whllcjt created a scaro for tho moment, effectually restored confidence throughout Manila and dispelled dis-pelled the excitement duo to a passing fear on the part of citizens that an outbreak out-break was Imminent. It Is possible that tho Filipinos, after tho diplomatic conferences that havo been held between tho representatives of General Oils aud Agulnaldo, havo finally como to understand that the cautious and conservative policy of tho Americans Is not dtio'ta fear, aud they may accept tho Inevitable with good grace. It Is cvhlentTlhat at present they aro ttnablo to appreciate tho full meaning of tho Independence demanded, demand-ed, nnd when they do understand Its extent, tho American (proposition will bo acceptable t |