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Southland Times, Issue 1556, 26 March 1872, Page 2

The mail news to hand by the Alhambra places the peaceful solution of the Alabama question in a more hopeful light than the telegraphic summary via Ban Francisco led us to anticipate. It does Dot appear, aa was at one time supposed, that that intelligence was

materially exaggerated, at the same time chere is nothing in the present aspect of affairs to indicate that the matter will become a casus belli. Still, negotiations as they stood at the date of our advices, showed no signs of mutual adjustment. On the part of America, the demand for full compensation for direct, as well as indirect loss, continued to be insisted upon, while on the part of Great Britain the latter was as emphatically repudiated. The terms of the original agreement between the two countries are reported to be silent as to the admission or otherwise of these claims, so that having regard to a peaceful settlement it is not improbable that the question whether or not these fresh claims are tenable will be submitted for separate arbitration. Apart, however, from the probabilities of that step being resorted to, England appears in the meantime firm in the stand she has taken. At the opening of Parliament, the Queen expressed a hope that negotiations would continue on a basis acceptable to the Government of the country, and it is reported that despatches have been sent to Washington threatening to withdraw from the proceedings if these indirect claims are insisted upon. The whole bearing of the question, however, goes to show that war can only be regarded as a remote contingency, and to that extent at least the intelligence becomes reassuring.