ARRIVAL OF THE "BOMBAY," AT MELBURNE, WITH THE JULY MAIL.

New Zealander, Volume XVIII, Issue 1725, 22 September 1862, Page 1

ARRIVAL OF THE "BOMBAY," AT MELBURNE, WITH THE JULY MAIL.

GREAT CONFEDERATE VICTORY AT RICHMOND. RETREAT OF THE FEDERALS TO A SECURE POSITION ON THE JAMES RIVER. GREAT CONFEDERATE PREPARATIONS FOR DEFENCE. CONFEDERATE VICTORY IN TENNESSEE. MURFREESBORO TAKEN. NASHVILLE THREATENED.

CONFEDERATE VICTORY ON THE MISSISSIPPI.

BATON-ROUGE RE-CAPTURED, FRESH LEVY OF TROOPS DEMANDED FOR THE FEDERAL ARMY. VOLUNTEERING SLACK. POLITICAL DISTURBANCES IN RUSSIA. ATTEMPTED ASSASINATION OF THE EMPEROR. AGITATION IN ITALY—THREATENED DESCENT BY GARIBALDI ON THE ROMAN COAST.

[From the “ Sydney Herald’s ” Melbourne Telegraphic Correspondent.] Sept. 8. The R. M. s.s. Bombay, Capt. Methven, arrived at Queenscliflb at 12.40 to-day, aud at King George’s Sound on the 2nd instant, at 9-30 a.m., and sailed at P2O on the 3rd. Passengers —For Sydney: Capt. Bradford and Mr. Courtenay, from Calcutta; Mr. P. Cecil, child, aud servant, from Hongkong; Mr. Gordon Sandemau, Mrs. Sandeman, and servant from Southampton; Mr. Cook and Miss Cook, from Madras; Mr. Greaves, from Calcutta; Mr. and Mrs. Trowell, child, and servant, and Miss Graham, from Madras. For Melbourne :—Mr. Macnamara, Mr. M'Glashire, and Mr. Allan, from King George’s Sound; from Marseilles, Messrs. Hughes, Cotterel, Mr. and Mrs. Dawson, 3 children, and servant, and Mr. Cotton; second class, Messrs. Cameron and Johnson; from Bompay, Mr. Dilcon. Latest dates from England via Marseilles, 26th of July; Alexandria, Ist of August; and New York the 16th of July. The Australian Mail ol May was deliveied in London, via Marseilles, on the 14th of July. . „ The Queen and Prince of Wales have left for Balnjoral. . The marriage of Princess Alice with Prince Louis of Hesse was celebrated at Osborne House on the Ist July. Prince Alfred, after returning from the Baltic, intends visiting the Australian Colonies. Major-General Macarthur has been made a Knight Commander of the Bath, and MajorGeneral Pratt has been appointed Colonel of the 17th Regiment of the line. Nothing of interest to the Australian Colonies has occurred in Parliament since last mail.

I OBITUARY. Among the deaths reported during the month are those of Colonel T. P. Walsh, Madras retired list; Lieutenant-Colonel Ballingall, Bombay retired list; Captain H. M. Douglass, Bombay Artillery; Captain T. Bretton, Bombay retired list; Mr. A. W. Ravenscroft, Bombay Civil Service retired; and the Archbishop of Armagh, The following Notifications appeared in the “Gazette” of July 18;—“ The Queen has been pleased to direct letters patent to be passed under the Great Seal granting the dignity of a knight of the United Kingdom of Great Britain and Ireland unto George Alfred Arney, Esq., Chief Justice of the Supreme Court of New Zealand. The Queen has also been pleased to direct letters patent to be passed under the Great Seal, granting the dignity of a knight of the United Kingdom of Great Britain and Ireland unto Francis Smith, Esq., Judge of the Supreme Court of Tasmania.” LATEST INTELLIGENCE. VIA JUISAL. London, August Ist, 7.50, p.m. The position cf the Federal r ray is considered extremely critical. European intervention is considered now to be more likely. A ciisis in Italian affairs appears to be imminent. Garibaldi openly proposes as a toast “ Rome or death. But Rome with Victor Emmanuel as its head.” The Queen has given £2OOO sterling as a contribution to the Lancashire distress. The Government has been beaten on the bill that it introduced to afford relief. Some new foreign loans are announced. HOUSE OF LORDS. NEW ZEALAND BILL. This bill passed (Juno 26th) through committee, and was reported without amendments to the House. HOUSE OF COMMONS. CANADA. —NEW ZEALAND. Mr. Arthur Mills [June 30th] asked the Under-Secretary of the State for the Colonies whether there would be any objection to lay upon the table of the House the correspondence which has passed between the Home Government and the Governor of Canada with reference to the Militia Bill; and whether the despatches which have been recently received from the Governor of New Zealand respecting the native land question in that colony would be presented to Parliament. Mr. Fortescue was understood to say that the Government would have no objection to lay all the correspondence on the table when it was ready. NEW ZEALAND BILL. The House went [July 7] into committee on this bill and passed the clauses, adding the following on the motion of Mr, C. Fortescue: “Power to General Assembly to repeal 73rd section of 15 and 16 Vic., c. 72. —And wheieas it is expedient to enable the General Assembly of New Zealand to repeal the 73rd section of the first hereinbefore recited act of Parliament, bo it further enacted as follows (that is to say), it shall be lawful for the said General Assembly to alter or repeal all or any of the provisions contained in the said section, and no act passed by the said General Assembly, nor any part of such act, shall be or be deemed to have been valid by reason that the same is repugnant to any of the said provisions.” To add to the title, “ and to enable the legislature of New Zealand to repeal the 73rd section of an act intituled ‘ An Act to grant a Representative Constitution to the Colony of New Zealand,’ ”

AMERICA. General M'Clellan is still encamped on the Turkey Island bend on the James’ River, a few mdes from Richmond. This position is said to be a more advantageous one for him, and less exposed to attack than that which he formerly occupied. In this position the Confederates have ceased to threaten him, and have retired from his front. The Confederate position at Fort Darling, which commands the obstruction in the James’ River, and from which the iron-clad fleet was repulsed, has been additionally strengthened by some iron-clad batteries, and the Confederates are everywhere making the most vigorous preparations for a prolonged struggle at or before Richmond, which they seem determined to hold to the last extremity. It is believed that M‘Clellan finds the task before him so serious, and has, moreover, been so crippled, that he will not be able to act on the offensive for some months, and there is a rumour that he is to be superseded by General Halleck. Additional forces are required, but the recruiting for the new levy is progressing slowly. In the South-West, the Confederates have also achieved some success. The town of Murfreesborough, near Nashville, has been recaptured by the Confederates; and Nashville itself, the capital of Tennesse, is threatened. It is also rumoured that Baton Rouge has been re-taken.

The Confiscation Bil', which enables the President to set free at sixty days’ notice the slaves of all rebels, has passed Congress. It is believed, however, that the President will veto it.

The position of affairs has not materially altered since we last wrote. General M'Clellan’s aamj is said to be in good condition, and the new disposition of the troops is obviously superior to the old. Instead of showing a front extended to a length of fifteen miles, it is now only one-third of that extent, supported by gun-boats, and open to supplies and reinforcements, —altogether a much better strategical position, so that the Northerner’s boast that though they are further off from Richmond than they were, measured by miles and furlongs, they are practically much nearer. On the 4 th of July,—the Anniversary of tho American Independence,—General M'Clellan issued an address to his troops, closing with these words:—“On this, our nation’s birthday, we declare to our foes avlio are rebels against the best interests of mankind, that this army shall enter the capital of the so-called Confederacy, that our political Constitution shall

prevail, and that the Union, which can alone secure internal peace and external security to each State, must be restored, cost what it may in time, treasure, and blood.” These be brave words, but whatever chance there may be of their realisation, it is not to be doubted that they were uttered in good faith, and that M‘Clellan believed that in a little time Richmond would be in his possession.

A week after the date of this address no material change had taken place iu the position of the two forces. President Lincoln has visited IVPClellan’s camp, and had, it was said, been well satisfied with the aspect of affairs. The great question now is one of reinforcements. With respect to these there are conflicting 1 accounts, it being doubtful whether the existing divisions in other pa-ts of the country can afford to render any material assistance to the army of the Potomac.

Our latest intelligence from New York is to the 16th instant, jffflMs importaut-rather in a political than in a military sense. It is announc'd that the Senate have passed the Confiscation Bill by a majority of twenty-seven against thirteen. By this bill the Confederates are to be allowed sixty days after proclamation to lay down their arms, after which date all who do not lay down their arms are to be considered as guilty of treason, to be liable to the confiscation of all their property, including slaves, and to be liable also to the punishment of death. But there is an impression abroad that the President will veto this bill.

Another item of intelligence brought by the telegraph this morning is that the enlistment for the new levy to recruit the Federal army, is proceeding very slowly, and that a conscription is talked of as a not improbable result of this backwardness in volunteering. It is added that the Government is dissatisfied with General M‘Clellau, and that Halleck will not improbably take his place as Com-mandcr-in-Chief of the army of the Potomac. That a terrible struggle is still impending is certain, and there must be much more waste of blood and treasure before any reasonable hope will present itself of an end being put to the conflict. During the last days of June the Confederates attacked the Federal lines with overpowering force. The contest was obstinate and bloody, and was continued for several days, but the Federals were at length forced to retire to the protection of their gunboats. London, July 26. By the arrival of the Scotia at Queenstown, news has been transmitted from thence by telegram from New York, the 16th instant.

The Confederates have disappeared from Gencrtl M'Clellan’s front, and General Jackson is reported to be moving in the direction of Fredericksburgh.

The Confederates are now within fifteen miles of Nashville; and, as an attack is hourly expected, active preparations are making for resistance. Lexington, in Kentucky, has been placed under martial law, and the Confederates, under General Morgan, are reported to be advancing upon the town. The Confederates are stated to be making mysterious movements in the neighbourhood of Corinth.

The bombardment of Vicksburgh continues without result. Some doubts are entertained of the truth of the Southern report of the capture of Baton Rouge. The citizens of Memphis have been ordered to take the oatli of allegiance, or to leave the city within live days. The Confederate Governor Moore of Louisiana has issued a determined proclamation, forbidding all intercourse by the inhabitants with New Orleans for a ly purpose, and it also declares that the faith of the people of linal success is in no way shaken. The Confederate General Van Don has issued a proclamation declaring his intention to protect the banks along the Mississippi to the last extremity. The Federal General Pope has issued a stirring address to the army in Virginia, intimating his intention to lead them speedily against the enemy. President Lincoln has transmitted a bill to Congress compensating any state abolishing slavery. The Senate has passed a bill admitting Western Virginia as a State, with a clause providing for gradual emancipation. It is reported that to facilitate enlistment, volunteers will be received for one year’s service.

An addition of one cent, per lb. has been imposed on sugar. A lady in New Orleans, named Phillips, has been sent to Ship Island, for laughing derisively from her balcony, during the passing of the funeral of a Federal officer. The British gunboats Landrail and Riualdo are at New Orleans.

The Congress has postponed adjournment for one day. President Lincoln is expected to send a message to Congress referring to the Confiscation Bill. It is reported he will either veto the bill or return it with suggestions of modifications.

The majority of the members for the Border States repudiate President Lincoln’s emancipation scheme entirely; but the minority tiivour the plan. Their reply to the President will shortly be published. A mass meeting Avas held in Union-square yesterday. The meeting Avas not so numerously attended as that in April last year. Resolutions have been passed favouring persistent efforts to crush the rebellion, and declaring emphatically that foreign armed intervention would bo resisted Avith all the strength of the country. The majority of speakers favoured the employment of negroes in the Avar.

Tho Senate has passed the Militia Bill Avith an amendment limiting the emancipation to tho slaves of the rebels. Tho Confederate Guerillas are becoming very active in tho Border States, destroying property and burning the bridges. They had captured two small toAvus in Missouri. PROPOSED MEDIATION. Continental journals continue to speak of European mediation in America. The Independance Beige asserts that the Emperor of Russia has volunteered to make, as a preliminary to a collective offer of mediation, a personal appeal to President Lincoln, asking

him to accept the principle of a compromise. It adds that the British Government has intimated to M. Thouvenel that it would not longer hesitate to bring about a collective mediation, in the event of Russia’s good offices being accepted by President Lincoln. The latter statement does not agree with Lord Palmerston’s speech of Friday night, and may safely be treated as idle rumour.

THE HORRORS OF THE AMERICAN WAR.

Mr. F. Smith of Sandfield Lodge, Woodsley, Stourbridge, has sent to the “ Times” the following extract from a letter received by him from a Federal friend in the South: Fortress Monroe, June 4, 1862.

“I now realise war in all its horrors. I have witnessed such scenes as would make the blood curdle to read about, but to look upon them is truly horrible. “ I have seen within two days past more than 12,000 men, torn in all parts of the body with balls and bayonet wounds. I wont on board of the Vanderbilt this morning, and saw lying all over the boat 850 wounded and dying men. I sickened at the sight, but was compelled, for the sake of humanity, to do what I could to aid them. I there saw Colonel Brabton, of South Carolina, a rebel colonel, who fell upon the field, not dead, but badly wounded. Some of the wounded were hit in four or five places. “ Those men are less than one-quarter that fell upon the field of battle on last Saturday near Richmond. The rebels there attacked the Union troops and completely routed them taking all their stores, ammunition, artillery, &c.

“On Sunday there was some fighting, which the papers report as being terrible, and that they regained all they lost on Saturday, but this is not so. The rebels fought terribly hard, and I very much fear McClellan’s array will be completely routed if he does not soon receive heavy reinforcements. “ Yesterday Sumner’s division was attacked again by the rebels, but we have not received any news of the result, as the wires are down from head-quarters. “We have lost a great many officers, numbers of colonels, lieutenant-colonels, majors, &c. I was informed one boat alone was filled with officers.

“ Colonel S was wounded, as was his captain, and his company was terribly cut up, but few men remaining. “ The Pennsylvania regiments suffered terribly; only 150 men are left in the 104 th regiment.

“ The number killed, Avounded, and missing in the tAvo days’ fight approaches 16,000 certain. Don’t belie\*e anything you see in the papers. I knoAv they lie awfully. £ * Official despatches are Avorth nothing.” In a letter from Fort Royal, dated June 14, the folloAviug passage occurs: — “ A mo e beautiful country than this Valley of the Shenandoak God’s sun never smiled on. The scenery is magnificent, but not with sterile peaks and frowning rocks. Green-vestured fields, and gentle roundbosomed hills nestle doAvn in the arms of great mountains, aun you knoAv they are quick Avith groAving life, even Avhile they slumber. It rather moves me to sympathy to see the trail of devastation that the two armies have left after them. Meadows af clover are trodden iuto mud; the tossing plumes of the Avheat-fields along the line of march arc shorn doAvn, as though a thousand reaping machines had passed over and through them. Dead horses lie along the road, entirely overpoAveriug the SAveet scent of the clover blossoms, aud flinging out upon the air a more villainous stench than could by any possibility asceud from the left wing of the Tartarean pit.”

FRANCE. The Princess Clotilde, wife of Prince Napoleon, gave birth to a son on the 18th July. The young Prince has received the names of Napoleon Victor Jerome Frederic. The trial of fifty-four men who were accused t of conspiracy against Louis Napoleon, was brought to a conclusion on Saturday. Greppk, whose name was one of the most prominent of the lot, and sixteen others, Averc acquitted. The heaviest punishment Avas three years’ imprisonment, accorded to five of the number, and the remainder Avere let off for terms varying from two years and doAvmvards. The Monitcur of the 18th contained the official announcement of Count de Moruy’s elevation —the President of the Legislative Chamber of Due de Lorny. General Foray, it is stated, is to depart from Cherbourg on Wednesday next for Mexico. His reinforcements, Avhich, according to the Fresse, have been increased to 30,000 men, Avill folloAV immediately. Recent events appear to have made the French Government define by a neAV process the character of the expedition. The Esprit Puhlique announced that General Foray, in taking' command of the forces in Mexico, lias very distinct instructions to disavoAV the injurious proceedings of the Mexican General Almonte, to disclaim any engagement Avith him, and to inform him, so far as he is concerned, that all French co-operation and intervention is Avithdrawn. If this really represents the intentions of the French Government, those intentions have undergone a \ r ery decided change. The Fays states that the principal conditions of the French Treaty with Cochin

China, are the cession to France of three provinces, together with an indemnity of 20,000,000 of franks, and the liberty of worship for Christians. The Constitu tionnel pays a warm tribute of commendation to the hospitable manner in which foreigners, and particularly the French, have been received in Loudon this season. After giving a long list of noblemen and high personages who have given entertainments to the foreign visitors, the French journalist expatiates, in glowing terms," on the fabulous hospitality ottered by the Lord Mayor to his countrymen, and the sumptuous banquets to which they have been invited by the Sheriffs of London and Middlesex and the City Companies. ITALY. The political atmosphere of Italy is apparently still charged with dangerous materials. The Turin journals mention the departure of

bodies of young men from different places to Genoa* wbfose intention is said to be to set out for Palermo. What their ultimate employment is, is not hinted at, but there is little doubt that their purposes are inconsistent with the intentions of the Government. The design of these hot-headed persons receives, perhaps, some explanation from a paragraph in the Patrie of last night. In that journal, it is asserted that Garibaldi, with 6000 men, is about to land on the Roman coast, and six French war vessels have received ciders, in consequence, to cruise between Civita Yecchia and Terracing. The Count de Montebello is also reported to have despatched troops to protect the Roman frontier. This important news, however, seems to rest entirely on the authority of the Patrie, which is notorious for its sensation telegrams and paragraphs; but it is beyond all doubt that the movements of Garibaldi are watched just at present with intense anxiety from various quarters. RUSSIA. The ‘ Morning Star’ has positive information that the life of the Emperor of Russia has been attempted by an assasin. His Majesty was walking in the Palace Gardens when he was fired at, fortunately without effect. The ‘Star’ also positively asserts the truth of another piece of informatiou, which is almost beyond belief. It is to the effect, that a Queen’s messenger was stopped on the Russian frontier. His despatch box was taken from him, broken open, and searched, on the pretence that this mode of communication had been at the service of the enemies of the Russia* Government. The Grand-Duke Constantine has performed an act which cannot fail to win him the approbation of a number of Poles. He has remitted the sentence on nineteen women who were banished for making hostile deraonstatious, and has allowed them to return to Warsaw. Some important advances appear to have been made toward the recognition of the Polish nationality.' It is said that the Polish administration under the Grand-Duke Constantine will be perfectly independent of that of Russia. A District Custom-house line will be drawn between them, and their affairs will be as separate as the affairs of two kingdoms so closely connected can be. It is also reported that the Grand Duke will take from the Czar the title of King of Poland: Another important step, which is generally expected at Warsaw, is the declaration cf general amnesty. The Czar in a manifesto, considers the birth of the son of the Grand-Duke Constantine as a new mark of blessing and consolation that God has given us, and he gives the title of Imperial Highness to his well beloved nephew. Revolutionary manifestations are said to be still rife in the Russian Provinces, and letters from Moscow appear to show that assassination is now becoming a vice of the Russian revolutionists. The murders are perpetrated in the streets, but with the same secrecy as has wrapped up the names of the late incendiaries. Acccording to letters from Warsaw the Grand Duke Constantine felt no further bad effects from his wound, although up to a recent date, he was compelled still to wear his arm in a silng.

DENMARK. The King of Sweden is at present on a visit to the King of Denmark. A grand festival in honour of the occasion was given in Copenhagen on Saturday. The guilds, the students, and the various associations of the tOAvn marched in procession in the evening to the castle, and on their arrival the two Scandinavian Kings made their appearance, hand in hand, on the balcony, amidst immense demonstrations of popular enthusiasm. SPAIN. The Correspondencia Autographia says that it is not impossible that, under certain conditions, and at a time not yet fixed, Spain might recognise the kingdom of Italy. The Epoca , Avhich replies in a semi-official character, carefully qualifies the recognition which Spain will give to Italy. In re-estab-lishing relations Avith Italy, says the Epoca , Spain would reserve to herself the right to defend the dynasties united to her by the ties of kindred and the rights of the Papacy. It has been rumoured in Paris, however, that the ties of kindred have not been strong enough to prevent the Avitbdrawal of the Spanish representative fromthe pseudo-court of the ex-King of Naples. CHINA. July 30. The rebels are quiet about Shanghai; the pressure upon Nankin having called for all the rebel forces drat could be spared, and the feeling is strong against them; they however permit foreigners to pass unmolested through the country in their possession. There has been another attack on the British Embassy in Japan, and two marines were killed. Reparation has been demanded, and Avar is probable. The American steamer Union Star, while on her trial trip at Shanghai, Avas bloAvn up, and four lives only saved.

GENERAL SUMMARY. [From the “ Home Newi,” July 26.] The rapid and extraordinary changes that have taken place in the fortunes of war in America warn us of the folly of speculating upon the issue. A few weeks ago the North seemed to have the South helplessly at its mercy. New Orleans had fallen, Memphis had fallen, Charleston was falling, and Richmond was expected to be abandoned every hour, Beauregard had fled from Corinth, no man knew whither ; Jackson had run away from Fremont; M‘Dowell was on the eve of joining M‘Clellan; and McClellan was completing his deadly lines round the capital of the South, by which the last stronghold of the rebels was to be blown into the air. Presently the colours, action, and entire tableaux of the phantasmagoria undergo a total transformation. Charleston is reinforced, and defies he? besiegers, who find it as much-as they can do to keep their ground. Beauregard, although he is ‘‘nowhere,” has for the present rendered Charleston invulnerable. Jackson, instead of flying before Fremont, slddenly appears at Richmond. The expectation of a junction between M‘Dowell and M‘CMlan is

clearly at an end. All hope of anything like a Federal combination is over for the present.

The next exploit of tho Confederates at Richmond was a regular raid, by which they turned tho right flank of M'Clcllan’s army, and got nearly twenty miles in their rear,, without being checked or even discovered. This daring and clover movement appears to have been executed by six regiments of infantry and two cavalry, who succeeded in getting between tho Chickaaominy and Pamunkey rivers, on tho latter of which they burned two schooners laden with store, and and then penetrated to a station on the Richmond and We .-point Railway, where they destroyed a waggon train consisting of fifty vehicle.*. The officers who hold high rank in M’Clella i’s army were said to bo indignant at tho n~jli ;orce and want of foresight which permitted such an occurrence to take place; but worse diasters lay before them. Immediately after this surprise, M’Clellan advanced his pickets into the swamp, and great c. edit w r as given to him for efiecting so closo an approach to tho walls of the town. But his real situation, even at this moment, was betrayed by the frequency and urgency of his appeals to Washington for reinforcements. Now came another turn of the wheel —another surprise—and another victory for tho Confederates; the most vast in its extent, and important in its consequences, that has occurred since tho beginning of hostilities, It appears that tho Confederates, reinforced by “ Stonewall” Jackson, attacked tho right

wing of M‘Clcllau’s army, and after a sanguinary conflict drove them across the Chicxahominy, and compelled them to fall hack behind their left wing on the James River, where they found shelter under cover of their gunboats. General M‘Clellan has endeavoured to make capital out of his calamities, by declaring that, oven if lie had not been forced to retire from his lines, ho would have done so for military reasons; thus trying to convert an absolute defeat into a strategic movement. But that this view of tho situation is got up for the nonce is obvious from the fact that in his previous despatch, received only a few days before, he had taken credit for having advanced into the swamp within so short a distance of Richmond as to render the capture of tho place a mere question of time. If it was good generalship to take up that position, it could not be also good generalship to abandon it in tho lace of the enemy. Tho fighting is stated to have been carried on without cessation for seven days, during which time M'Clellan must have been executing a Parthian manoeuvre, for he covered no less than seventeen miles on his retreat. The beaten general at first [announced that his forces were not worsted in any conflict, that they could not be driven from the field, that tho rebels, on the contrary, were repulsed with heavy slaughter, and that his own loss was only one gun and one waggon. But there is now little doubt that ho lost 25,000

men, and that the Confederates whose loss could hardly have been less, captured 12,000 prisoners, the whole ofM‘Clellan’s seige guns, and supplies sufficient to last the whole army for three mouths. Nor has the humiliation of the army of the Potomac ended here. The Confederates were not content with their seven days’ victories, but have since captured a town near Nashville, aud taken a Federal regiment. In other directions, their arms have been equally successful. At Charleston they have won a battle, which cost heavy losses on both sides, and they have captured Baton Rouge, near New Orleans, and taken 1500 prisoners. The setting in of the hot weather will, probably, for a time suspend further operations, at least on a great scale; but it is evident that up to the point a which they leave off, the Confederates ha~e obtained considerable advantages. Pres'dent Lincoln has invited M’Clellan in his new quarters, and spoken cheerfi ’ly to the troops; but reinforcements would % be more to the purpose, and th~y come slowly, if* indeed, they c. me at all. A large bounty has been

offered to recruits; but there is little disposition to embrace it, and there are significant symptoms abroad of the possibility of the war languishing for lack of muscles. In the face of this serious difficulty at home, Congress has been taking a gigantic step towards widening the gulf between the Northern States and Europe. A new prohibitory tariff has been passed. By this wonderful code, the American market is absolutely closed upon the commerce of Europe, and especially upon the commerce of England. Indeed, that seems to have been the express object with which it was compiled. “ Its effect will be,” exclaims the leading New York paper in a tone of exultation, “to deprive Europe of the American market, a result more disastrous to England and France than a thousand blockades of cotton ports.” The marvellous thing is that these people do not see that in bringing about this result, which is to operate so disastrously upon Europe, they are ruining themselves. Trade will be stopped to ell intents and purposes as between America and the rest of the world. What then? The West will sever its connection with a government which legislates for its destruction, and the great Powers of Europe, as a matter of necessity, will recognise the Independence of the South. Who will suffer most by this ? The most interesting piece of European news is an alliance, or understanding, which has been entered into between France and

xvussia tor tue settlement oi certain questions that have of late given much trouble to the world. The state of the Christians in the East is one of these questions; the affairs of Italy supply anpther; and the dispute between Denmark and the German Powers is a third. That France and Russia, differing essentially as they have done hitherto upon some of these points, should now be able to come to a satisfactory agreement about them would bo very gratifying if it were not calculated to excite uneasy speculations. When Sovereigns put their crowned heads together, “ peoples” naturally feel a little alarm. A meeting between the Czar, the Emperor of the I reach, and the King of Prussia, is to take place some time in September, at Toplitz, Baden, or Cologne. Some say that the Emperor of the French has initiated this scheme, with a view to a more widely extended development of the principles of free trade; while others maintain that n-.i-fWm.mi

designs are at the bottom of it, and that it will bring about changes which cannot lie expounded without the help of a new map of Europe. It would bo idle to add to these speculations. Wo have no means of estimating their value; and have no suggestion to offer, one way or the other, beyond that which will present itself to every one’s mind, Suit the leagues of Sovereigns in this age are .not quite such formidable combinations as i'-iey used to be. j

The movement towards German unity may bo regarded as a step in the other direction, and, by a remarkable coincidence, comes to a head about the same time as the proposed gathering of rulers, the great German National i Assembly having also settled upon Septem- j ber as the time of their meeting at Frankfort, ■ Austria prepared herself for this convention! by proposing to adopt the tariffs and the organization of the Zollverein—a measure the importance of which to Germany in general, and to Austria in particular, cannot bo overrated; but Prussia, on the part of the Zollverein, has rejected the offer. The reverse which the French army has suffered in Mexico carries a sound moral. So long as the people were let alone, they would probably continue to fight amongst themselves, which is no doubt a very bad thing; but the moment a stranger interferes, especially if he come for the purpose of setting up a new form of government over them, with a foreigner at its head, they will join to expel him. This is very much the situation to which the French in Mexico are reduced. They have been deceived in the promises of support, upon the validity of which they undertook the enterprise. At Puebla, where they expected to lind a population ready to receive thetn with open arms, they were astonished by the zeal with which they were opposed—and beaten. At all points, indeed, the French have been disappointed, and, in spite of their bravery, which is attested by their opponents, discomfited. General Freay has been sent out, charged with special instructions to disavow the proceedings of General Almonte, and to take such other stops towards the conciliation of the Mexicans as the exigency of the situation may require* The state of Russia is becoming every day more alarming, and more likely to lead to serious consequences, the nature or scope of which it is impossible to foresee. The spirit of disorder and anarchy is making rapid and desperate strides throughout the empire. The formidable way in which it manifests itself renders detection difficult, and spreads dismay on all sides. The destruction of life and property, by a succession of conflagrations, is so indiscriminate, and at the same time so certain in its operation, making its approaches by moans against which its unsuspecting victims cannot offer any defence, that the orderly population, who desire only to be secure, are plunged in despair. Nor is it in St. Petersburg alone that this terrible incendiarism has broken out. The provinces are in flames as well as the capital. The ancient Novogorod burns as freely as the city of the Czars, and there is scarcely a town of importance to which the torch of the conspirator has not been applied. That these fires are the work of a deeply-seated and craftily-contrived design hardly admits of doubt. The fact of their being simultaneous, of the uniformity of their action, and of their steady increase, in spite of the penal measures put in motion by the authorities, all tend to prove that there is a conspiracy at the bottom of them. Many arrests have been made, but nothing has yet been discovered. To increase the public alarm the life of the Empeior has been attempted while his majesty was walking in the garden of the Palace. The attemp failed, but the intended assassin appears to have escaped.

Russia and Prussia have both acknowledged the kingdom of Italy. New internal troubles, however, appear to menace the repose of Victor Emmanuel and his government. It is currently reported that Garibaldi is about to make a descent at the head of 6000 volunteers upon the Roman coast, and French vessels bf war have been ordered out to intercept him. The report may not be strictly correct; but that there is some such movement in contemplation appears to be generally believed in the political circles. Thr distress deepens in the North ; and Ministers have found it necessary to bring in a hill to enable the boards oi’ guardians to meet extraordinary demands for relief. If the fine weather which has at last smiled upon us should continue for the next month or six weeks, good hopes arc entertained of the harvest, notwithstanding the mischief that has already been done by the late heavy and continuous rains. In any event, subscriptions are being entered into in all parts of the country for the aid of the operatives, now working half-tides or thrown out of employment altogether. Their patient endurance throughout this trying crisis has won for them universal sympathy and respect.

The culminating glory of the International Exhibition was accomplished upon the occasion of the Distribution of Prizes. The day was a special day, full of sun without being oppressed by heat, light cool winds and no rain. The interior of the Horticultural Gardens presented a scene of enchantment, upon grounds laid out in the choicest Italian taste, such as Boccaccio would have delighted in ; the interior of the Exhibition building was embellished with the flags of all nations, and looked a hundred times gayer than ever : bauds were dropped about so thickly, French, German, Swiss, Egyptian, English, that wherever you went you literally stepped in music ; and to complete the charm there was the Viceroy of Egypt, surrounded by his gorgeous staff several European princes, an endless roll of foreign and domestic ministers, and persons of rank and eminence from all parts of the world, and the most remarkable display of beauty that has been collected in England at any time within the recollection of that celebrated individual, the oldest inhabitant.