LONDON.

t»ROM THE DAILY TIMES CORRESPONDENT.) 25th June, 1866.

The intelligence conveyed by tnis mail is of the utmost importance. European ■war, which last month was only imminent. is now a deplorable fact. The ominous " declarations" were mutually exchanged on the 18th instant, by Prussia, Au'tria and Italy, and precious blood has flowed already ; but, before giving your readers the preliminaries, I will treat on Antipodean matters.

Your mails arrived 10th and 16th inst., confirming the impression that your own long trial of war and bloodshed, misrule ■and division, approaches its end ; and that henceforth we may discuss New Zealand affairs in joyous tone. All hail to your bold Volunteers : and, considering what it "has done for England, we proclaim such an institution as of the highest import to any British Colony. Let us then congratulate the Otago champions — Corporals Christie and Taylor — in the hope that their fame will he emulated by their numerous gallant -comrades, and the ranks be swelled by the rising generation. The pcale of postal charges by the new Panama route is issued. The mail leaves London on the 2nd, and Panama on the 24th of every month ; letters, under £-oz. Is ; under loz, 2s ; under 2oz, 4s ; and 2s for every additional ounce ; newspapers, under 4oz, 4d ; under Boz, 8d ; book, or pattern packets, under 4oz, 6d, and for every additional 4oz, 6d. The report cf the P.N.Z.and A.R.M. Co. was presented 15th instant; it showed an available total of L 9025, and recommended a dividend of 5 per cent, per annum on the entire paid-up capital, leaving L4OO to be carried forward. The report was adopted , but it was not deemed expedient to pay any dividend for the present, and the directors were authorised to borrow an additional L 100.000 on debentures. The Bank of New Zealand give notice that they will pay the halfyear's interest to 30th in3tant on the L 1,000,000 New Zealand Government Treasury Bills; L 25,000 Auckland Harbor Bonds ; L 92,300, Canterbury Bonds ; and L 575,000, Otogo Bonds. We hear nothing further of the Monarch, which put into Rio 11th April, under such unfavorable circumstances, and can only hone that Captain Macey has successfully navigated his Bhip to your shores. Miss Rye has arrived, and, at a public meeting iv London, she expatiated most glowiugly on the advantages which in New Zealand await our emigrants of each sex.

The political news from Melbourne is •very serious, and surely such things will not be tolerated much longer. The Hon. J. H. T. M. Sntton did not leave England last month to supersede Sir C. D-irling. as •was expected ; but he has just been presented at Court on his appointment, and will probably start for Victoria with this mail. John M Douall Stuart died at Notting hill, London, on sth inst., aged 48 ; and our papers are loud not only in p- aise of the grtat Scotchman departed, but al-o in denouncing the British Government for neglecting to reward such a genuine hero. To have been a worthy companion of Charles Sturt was something, but to outdo that gallant Captain and actually cross an unknown continent was to surpass the grand achievements of all Australian explorers who have ventured their lives in such perilous undertakings. On the same day, in Half Moon street, Piccadilly, aged 59, died Henry St. Hill, Esq.. formerly Magistrate and Sheriff at Wellington, N.Z. The death of John Dell, in Tasmania, aged 103, once a soldier in the 102 nd Foist, is told us by your paper, and is not without its interest at home.

The following ships have anived : — The "Water N^ mph, Endrate, Perch, Chili, Stringer, Wild Duck, Mermaid, Strathallan, Walter Hood, Sussex, Red Jacket, Bed Rover, Russel Milford, Verulum, Colonial Empire, Lucibelle, Dunorland, Swiftsure, Caranjah, Surrey, Strathnaver, Nourmahal, Fugitive, Electro, Centurion, Golden Sea. The following are spoken . — The Andreas, Rob Roy, B. L. Hariirnan, Lord Clyde, Queen of Sheba, Siam, Cambula, Resolute, Alexandra, Murray, Rowell, Adelaide Baker, Talbot, Neva, Pegasus, Earl of Dalhousie, Shalimar, Nineveh, Beatrice, Glencairn, Vicar of Bray, Rimac, Tasmania, West bury, Iron Duke, Percy Douglas, Despatch, Anna Star of India, Young Australian, Great Victoria, Liberty, Lightning, Thnmes, British Lion, Harmon, Wemmess, Caractacus, Hippolyta, Star of Peace, Toftcombs, Grtenock, Danger, Suffolk. The Ballarat leached Plymouth on 9th inst., with head quarters of the 68th Regiment. The Orwell arrived at Gravtst-nd on the 16th, with detachments of Royal Artillery and first battalion 12th Regiment. The Win terthur sailed yesterday with a large party for New Zealand ; 1o be followed next month by the Ida Zeigler. The Wiuterthur takes out some officers belonging to the 18th Royal Irish, consequently, that gallant regiment will not leave jou 3 eta bit. The ChalleDger, 22, steam corvette, Capt. Maguire, sailed for the Australian station on 30 th May.

The cutter yacht Alert, 38 tons, from" Sydney, arrived at Portsmouth on May 29th, having made the voyage in 115 days sea time. The Sarah Gvice left London for Melbourne on Bth inst., and when off Dover, received such injuries from collision with another ship as to render it nectssary to put back for repairs. Our May mail left us on the verge of war. Three chief belligerents and two millions «f armed men w»re ready, hesitating, nevertheless, to advance in the perilous pas de trois. We were shortly told the puns were loaded and the matches lit, but none dared strike the hasty blow. It was agreed to attend the Paris Conference, which, although a mere succes (Tc&time was prognosticated as its fate, would at all events afford some respite. The day ot meeting was fixed, nearly every Diplomat arrived, and then Austria refused to attend, except on such conditions as would make any Conference nugatory ; thereupon England, France and Russia retired from the scene, the Congress broke up, the last words had been spoken which separated peace from war, and upon Austria was cast the responsibility. The reign of terror f-et in afresh, telegrams came fast and furious, and false intelligence was signed in the names of accredited correspondents by ra=cally forgers, expressly to affect money and shares ; but we were not kept long in suspense; doubt and hesitation were thrown aside ; defiance came from lip and pen ; and our worst fears were speedily realised.

Austria havine rejected the Conference, Prussia demanded the immediate assembling of a German Parliament to reform the Constitution of the Bund. Austria then convoked the estates of Holstein, and placed the entire question of the Duchies before the Frankfort Diet. Prussia declared this a breach of the Gastein treaty, turned Austria ont of Holstein, arrested the Estates Commissioner, and took forcible possession of both Duchies. Austria appealed to Frankfort against this aggression, the Diet assembled, and Austria proposed that Duke Augustenburg, or some other sovereign, should be cho-en for the Duchiee, and that the Federal forces should be mobilised to assert the authority of theGormanic Confederation. Bismarck then threatened that any State voting for Austria's proposition would be considered Prussia's enemy, and treated according to military rule, which, although it frightened some of the parties into neutrality, had no effect on the result. The Diet voted for Austria's motion by a majority o f 9 to 5. Bismarck pronounced the entire proceedings illegal, declared the Federal pact at an end, and that Prussia seceded from the Bund. The Frankfort Diet thereupon re-assembled, and voted that Prussia could not secede from the Union, nor could the Bund be dissolved by any one of its members. The Federal forces were then ordered to be mobilised I and joined with Austria, for til? purpope of issuing execution against rebellious Prussia.

One after another did these transactions follow in rapid succession. Some few of the States, in dread of coming events, would not vote at a!!, and declared themselves neutral ; whilst those crowned heads who voted against Prussia speedily ran away from Bismarck's wrath, secreted their valuable?, and marohed their soldiers to the Hapsburg s'andards. And they were scarcely expeditious enough, for B's marck went in for a fight a Voutrance, and his audacity was never more conspicuous. Hanover, Saxony, Nassau, and the Hesses, and even the neutral Free City of Hamburg, were over run ere any formal declara'ion of war had issued from Berlin. On the 13th inst., ambassadors demauded their passports ; and on the 18tb, war against Austria was declared by Piussia and Italy ; but Bismarck had previously stolen a march on his adversaries. Within a lew days from the first movement of Prussian troops, they were in possession of the greater portion of Northern Germany. Ihe sword was drawn; German blood was shed by brother German ; the victorious Prussians established their headquarters at Dresden ; the Austrians pitched their tent in the Prussian province of Silesia, and both armies prepared fo their first grand battle. Were Itaiy out of the question, the largest battalions are with Austria, as is also the sympathy of Germany ; but any attempt to define the strategetical military positions of the various armies would be merely conjectural. We only know lor certain that King and Kaiser, crowned dukes, princes, and prime ministers, are all off to the camp ; tuat troops under valiant commanders are echeloned along the frontiers, and that mighty battles are imminent. The German Confederation exists no longer ; it is broken up into two factions on the question of its own Constitution. Fatherland prepares to slaughter its own kin, and to encounter the miseries of war in defence of the rival claims for supremacy oi the two leading -powers, whilst the world has to contemplate a butchery needless as it is wicked. A war which is likely to be one of the most calamitous that ever desolated

Europe is now before us, raging from tin Adriatic to the Baltic. Cholera, likewise, is there to add horror to the scene ; and the bideoua panorama may be widely ex tended by this day month.

We know pretty well the •value of treaties— those of 1815 are a precious sample. They are solemnly entered into and duly ratified by powerful potentates to answer the purposes of the time, and bequeathed as treacherous legacies to posterity. They are broken, and scattered to the winds by subsequent rulers, totally regardless of justice; and there is now scarcely a nation in Europe which can legitimately argue its own point on the faith of treaties. They must, forsooth, be taken for what they are worth; and whether or not the present disputes be settled by the sword, the end of all must wait for diplomacy, and consequently the map of Europe will be re- arranged by "treaties" to be riotously upset on some piltry pretext of capricious royalty. Treaties and boundaries go for little now-a-days, and yet without them it is difficult to jog along at all. Our main hope lies in the march of intellect, and that the time may come when the peoples will ignore the notion that they are to be marshalled

against each other, like so many poor birds, in a cock-pit, to foster the greed, ambition, or miserable pretences of unscrupulous master-minds. How long the " blood red blossom of war" will be allowed to expand over European fiJds is far beyond the gift of prophecy; but as the fearful struggle has commenced, and as none can yet arrest its action, we pray that it may be sharp, short, and decisive.

Both Francis Joseph and King William court sympathy, and endeavor to shift responsibility on to each other's shoulders. The most specious manifestoes are promulgated, and some questionable " homage to virtue" is paid by either ; but the fratricidal contest is the work of their own hands, the result of their felonious dealings with Denmark, and it will not be easy to justify themselves before Europe for the misery and ruin which their joint misdeeds inflict on Germany and other nationalities, as assuredly they will discover on the final settling day. When Germany grows weary of fighting at the dictation of the two disputants, the Federal pact will probably disappear altogether, and the country be divided into North and South by Prussia and Austria ; or it may be that the victor in the coming fight may parcel out his conquests at his pleasure. And if they settle it thus amongst themselves, the lookers- on will care very little ; but should foreign Powers be ultimately called to ttie j aid of either party, it will go hard indeed with Fatherland, and the Continental map i will be fresh study for us all. At present the Federal forces are opposed to the Prussians between the Elbe and the Weser, and the news of a battle is hourly expected ; also, in Silesia, the hostile armies of Prussia and Austria are in sufh close proximity that the frightful clash cannot be long delayed. In Italy the fighting area is more circumscribed, and we can see at a glance where the death struggle will be maintained. Verily these are trying times and to some lattr telegrams I must commend your readers for further intelligence.

The attitude of Italy surprises no one. I: has for many years been her one daytiream to turn the hated Tedeschi out of Venetia, and now to the voice of reason or remonstrance she is deaf as a post. The German disputes are eagerly seized on, and alliance with Prussia is the opportunity so impatiently waited for. King Victor knows he can only strike once, and must then succeed or be for ever fallen. Befort him is a double-headed giant, while papacy and reaction form a dreadful gulph behind. A disproportionately large army, and the unsettled state of the new kingdom, have brought him to the door of bankruptcy, and his statesmen prove unequal to the official burthen. Whea, then, a proposition came from the wily Bismarck, it acted electrically in Florence, and the King had to choose from three points — Venetia, War, or Revolution. War is selected, the two other items depending on the chapter of accident"!. Italian writers bid us contemplate a King, a people, and a hero in arms tor a just cause, and all prepared to do or die ; they are sensible, nevertheless, of the formic able task ; rivers must be crossed, and the dreaded Quadrilateral stormed ; such is the work cut out for King and people. As for the hero, his part is that of the Guerilla Chief; lake, lagune, and mountain warfare is consigned to the willing red shirts, whilst the Italian navy operates before Venice. The Mincio, the Adige, the Po, the Adriatic, and the Alps, are to stream with blood, and no expostulations now can change the lurid prospect, v Death or Venetia" is the only welcome sound in Italy — there is no other alternative. On the 23rd instant, the Italian army, 300,000 strong, with their King in the front, marched forth to meet the ioe ; La Marmora, Cialdini, and other well -trie'} chieftains with them, and another 300,000 is ready if wanted. The Quadrilateral stares them in the face, and those renowjued fortresses, Peschiera, Verona, Mantua, and

Legnago, will test their manhood to the utmost, and now or never they must succeed. That they are ably led ia admitted, and if unity and concord can brins: success it is theirs ; for, except a hopeless faction, the nation as one man, ia with them. Garibaldi has an independent command, with some 60,000 volunteers.

France looks on with folded arms, closely watching events. Whether Bonaparte can be fairly accused of contributing in any way to the present situation is not argued. He stands forth as a peaceful arbiter. His proposed mediation has failed, and he declares neutrality ; but he reserves unto himself what he terms " full liberty of action," the true meaning of which shall be known by and bye. That he will long play the part of a calm spectator of the fight no one believes, for it is Bcarcely within reason that such a war as this can terminate without French and Russian intervention; and although the two Emperors are pledged as neutrals, both hold their reservations, and will draw the sword in. particular eventualities, it depending of course on the " uncertainchance of war," which cause will be espoused by either of them.

Prince Charles of Hobenzollern, it is "uggestid, was sent by Bismarck to theDanubian Principalities, in order to disquiet Austria on her eastern frontier ; he is also said to be a pet of the Tuileries ;. any wa}', his alacrity is most commendable; he promptly answered the first call of the people, secured unto himself "the divinity that doth hedge a king," and ai> nounced his installation to foreign courts. As yet he remains without recognition, but he and his new subjects are well agreed - r his civil li.-t is voted; he regularly enters on his regal functious, and places himself at the head of his army, all which is most obnoxious to Turkey, and propositions are entertained to disturb the new Hospodar'sserenity ; but the Sultan is not allowed to act rasrily just now, and he is recommended by France to ke*p quiet awhile and let Rournania develop itself. llu.->£>i:i plays a very mysterious and rather suspicious character in the opening drama ; she held back from trie proposed Conference long after England and France had decided that nothing else could stay hostilities, and only joined in the pacificmood just to save appearances ; she also intrigues with Austria even now; her fleets buzzing about the Baltic,' whilst large armies haug on the Pruth and the Dniester, avowedly to enter the Principalities should Turkey interfere, but evidently in readiness for co-operation in Germany. The Turkish fleet is also in motion as well as her scimitar'd warriors. Portugal and Spain unite for common defence in anticipation of approaching danger. Greece is in such perplexing disorder, that King George has summoned the ministers of protecting powers to his presence, in order to make known bis critical position, and obtain their advice and assistance. In other exposed territories the trembling sovereigns are quiet as mice, anxiously scanning the atmosphere, but very careful not to speak or move till thej' see which way the wind blow 3. I mu3t now introduce your readers to some affiairs in England. Lord Clarendon has successfully steered clear of Continental troubles ; he cordially assented to Napoleon's Conference, and when that fell through, we were out of the affdir altogether. Certainly the Admiral of the Mediterranean fleet will keep his eyes open and make a note of things, but with our present Ministry wefeel that we are free from strife ; it is r however, with Gladstone and Co. I have now to deal. On the 18th inst. they were defeated on the L 7 rental franchise, the most essential feature in that Bill by which the Government was pledged to stand or fall. Lord Dunkellin moved as an amendment that the word "rateable" be substituted for '" rental," which was carried by a majority of 11 votes, the numbers being 304 for Government and 315 against. The decision settles Reform for this session, it not also for some long time to come ; but that is not the worst of it. A Ministerial communication was immediately forwarded to the Queen at Balmoral ; the Plouse was adjourned for a week, and we expect to know this night whether Ministers resign or appeal to the country — in either case a deplorable event with such gloomy clouda ahead. A bill is before Parliament to unite British Columbia and Vancouver's Inland into one Colony, to be known as "British Columbia," with New Westminster for its chief city. Capital punishment is likewise being argued in the Upper House, but their Lordships cannot agree on the recommendations of the recent Royal Commission. They decidedly object to the classification of murder into two degrees of crime, as embodied in the report ; but they are almost unanimous on the abolition of public, executions. The Bill will presently pass, and will materially alter our criminal code. Literary poachers are being hunted up, although the chase has failed for the present. A Copyright Bill was introduced by Lord Lyttelton and thrown out, but it is to be followed up with another. It proposes that every work

<$ fiction- be exclusively the author's property, and not dramatised without consent. As in any other case of bargain and sale, the idea is clearly founded on justice to the original owner of the goods, and it is fairly argued that a dramatist is no more justified in appropriating to his own use the produce of another man's brains, than is an ordinary thief in helping himself to the chattels of his neighbor. John S'uarr Mill is champion now for the women of the British Isles ; "female franchise" in other hands would scarcely be listened to ; but any subject broachod by our popular M.P. claims the politest attention ; &nd ou this he is most energetic All negotiations for a new extradition treaty between Eigland and France proving fruitless, a fu> thrr six months' lease of trie old treaty is agreed on to keep in check the conspicuous scoundrelism of both countries.

The baneful influences of the money panic have been experienced throughout the month ; but although the Bank rate holds at 10 per cent, confidence seems gradually returning. Amidst our distress, •we receive five or six millions sterling from America and the Antipodes, a great portion of which djopa into our ca^-h box, and we shall doubtless soon he rich again. The Consolidated Bank composed of the old firms Han key and Co., and Ileywood, Kennard and Co, of London and Manchester; the Agra aid Masterman's Bank ; the St. Cohimb and Falraou^h Ba<.k ; and the Universal Banking Corponiti n have all suspended payment. The Ha-t Indi-t Bank, the Bank of India, and the Cn dit Fonder, wind up under voluntary liquidation. The other large failures are Me-srs J. and J. Wehb; H. J. Etithoven and S«as; Moore, M'Queen and Co; Wm Kattray and Co ; George Furness, tht contractor ; and W. K. Cornborouuh and Co., of Liverpool. In many cases, time alcne is wanted to indemnify the creditors Messrs Peto and Betts are san^uin? of paying 20s in the pound, with interest; and other instances occur where those w ho can afford to wait, will be eventually re> couped. The imm-.nse number of cLrks thrown out of employment by the monet«r, crisis is truly distressing, and" various modeof relief are ?uggested. The Jarr.au a R-port is published It tellsus that the disturbances unqnestionab j originated in a planned resistance to lawful authority; that Governor E) re was <qual to the emergency, end by his skill, pron;ptitude and vigor, brought tne insurrec'io;' to a speedy end, and averted the h no * of a servile warfare; that the military an' 1 naval operations were judicious. It gravely censures the lons continuance c) martial law, and tlie excessive pntiis'imentunder it — tbe ex.cuti'n of 439 i:e.*<oe-, and the flogging of 600 more lnchs.-nmi nately of ccx, and the burni: \> of 1000 houses, are denounced in terms of criul v, recklessi e^s, wantonness and barbarity. It says that G- W. Gordon wa- p r oper'y arrested, but should have been reserved for the ordin Ty tribunals ; eons/qutnil) his trial by a military cotirt and nas'y death are condemnatory. Tne Governor i: also blamed fcr allow.ng his subordinates too much discretion in a service so novel and so difficult; but he iindividually at quitted of everything .>pproaching to rnaiice or to crime, and is admitted to have bt-Cja actuated h) the very best intention?. Mr Carduell end.ws .-^ this report, nnd white aceoidiiiu th due meed of praise for the Governor's g i eal conduct in the trying hour, with an exiited black race in the proportion of 'en to oro r against the vhitrs, consii'ers tl.at 'o reinstate him in Jamaica tnight snbj ct him to the exa erbation of feeling lesul ing fj<m past events, and there-lore t-endu a ne* Governor under a new Constitution Thus Mr Eyre is recalled, hur we, do not exp. ct he will be even temporarily dis^ractd oi excluded irom future prcft."n»e"t; t!--conduct, however, of the loc.il au;'> oi It? is matter for further in\e&ttiratii.n Bu whether M 1 Eyre and otlitrs be a[ plauoet; or condtmned by public opit.'oi: is of secondary consequence to the upholding (f our national honor, find on t'uat tccire «•( are safe, for the Comtmssiontis' in partial and extended enqui'j' cKaily proves th:it the outbreak originated in iio mere loral riot, but was based on the destruction ol law, and on dri\in>_' the white man in'o tbo sea. And now ue have vvA\ to inangura'e an efficient btaff of admirnVrai rs, fret from colonial pujudces, io render the fruitful island of J maica one oi our most prosperous dt pendencies. Several ljaints are started for tt c post, but it is n"\\ generally btlievcd that the new GoV'rtor of Jamaica will be Sir John Pctei Gras-t, X.C.8., au E tsr Itidi&n civil officer of repute, aged 58, and \*ho was LieutenantGovernor ot B^al du.iiig the mutiny Canada was m\adtd lstinst; a Fenian force, un!er Colonel O Ne:Jl, crusud Niagara Kiver, to. k Fort Eve, tlnte mil s from Buffalo, and t-tood a fi^ln wuh British troops, and paid dearl} besides, as evi-ry man was In led or captured. LieutenantGeneral Uly-sc- Gr.-s.nt urivid witu G'..ueral MeadeaLßufiilo, and btationed mi itary pickets along theirouiier, v.hilbt Am»ri;-a-. steamers patiolltd the waters. Otru-r vagabonds, Lowever, crossed our buuudauea

at Highgate, Vermont, on the 7th, under General Spear, routed a small British force, and captured a flag or two ; but our colonists were after them, and brought their raiding propensities to a dismal close. President Johnson issued a proclamation against tbe Filibusters and all their proceedings. American iorces on eea and land are ordered to intercept the bucaniering expeditions, and arrest the leaders. Sweeney, Roberts, and other patriots, are already in custody or on bail for trial ; and we shall soon hear of the comp ete collapse of Fenianism on the other side the Atlantic. Head Centre Stephens was keen enough to scent the ('anger cloud hanging over his proceedings in the Empire city, and ere it burst he packed up his traps and toos refuge in Washington. Lord Monck has considered it expedient to suspend the habeas corpus, and ha« constituted military courts for the trial of tbe marauders. The Canadian Parliament was opened Bth inst., for the first time, in Ottawa. New Brunswick votes for Confederation by a large majority. At the Cape the en'i of the Basuto war ia matter of great rejoicing in the Orange Free State ; unexpected good terms are obtained, and the Boers are colonising the territory surrendered by Moshesh. The reported gold discov.ries on the Crocodile river are confirmed. British Kaffraria is now an integral portion of Cape Colony. Trade was somewhat improving, confidence reviving, and the prospects of the country undergoing a favorable change. The ('olenso question was yet uppermost ; the Doctor standing on his rights guaranteed by Royal sign manual ; the Bishop of Cape Town disputing the Crown's supremacy in the Colonial Church ; and as Mr Cardwell's proposed legislation goes to support Dr Gray's theory, Colenso will probably be cast adrift with his metropolitan's awful excommunicotion suspended like another Damoclean sword o'er his devoted he^d. He cannot even get his salary 0f"L662 10s from the Colonial Bishops' fund, and he sues the trustees in the Rolls Court here; but tbe Attorney- General argues that plaintiff cannot recover ; that he ia not the Bi-hop of Natal; that when the Crown granted letters patent it had no ri^ht to sub-divide the diocess of Cape Town, of which Dr Gray was the Bishop This argument is a curiosity, as according to our common sense view, Dr ColetiSOought to bj prid for services rendered under the Queen's authority. In connection with these matters, I may mention that 1 years a^o Miss Burdett Coutts con-tr-buted L60,000t0 >yards founding Colonial Bishoprics. The purposes for which she s ive this large sum are frustrated ; and the B'shop of London presents a petition horn the lady praying parliamentary enq liry and legislation. Recent Privy Council decisions have severed colonial esrahlishraents from the Church of England «o far as concerns the Royal supremacy, and they now only exist as voluntarily assoI ciated with the mother church at Home. The

-. a^aries of Drs Gray and Colenso induce a fear that Colonial Bishops incline to run riot ; and if there be no controlling power a danger may arise of the Gourch of England being ultimately banished from the Colonies. Let then some good come of f-nqutry into these serious matters; for although we hear from the highest legal authorities that insurmountable difficulties exist, we well know there's much to do and to undo; and it .is hard to believe in a long continuance of hopeless chaos, or that the entire ecclesiastical fabric will be allowed to crumble iuto the du;-t.

Consul Cameron and the other Abyssinian prisoners (18 in number) are again reported "on their way to the coast." Mr llassam tells us that on the 9th April they v.ere atKorata all well ; hut we want to know that they are actually out of King Theodore's clutches— a knowledge \exatiously long in being imparted. A communication from Massoib, dated May 28ih, aays, "No further news Irom Mr Rasiam."

India sends bad accounts of the Bombay money and cotton markets; of a damaging 'anclslip at Port Canning ; of a terrible famine in all the Presidencies, accompanied by disease and crime ; of disastrous high winds amongst the Calcutta shipping; of the non- arrival of the Glasgow vessels Edith Kidd and Commodore Hayes, not heard of for thrf c months ; of war in Afghan and Central Asia ; and of tbe steady advance of Russian troops on Bokhara. A cew coli ny is starting into existence : the S:ra;ts settlement, i.e., Singapore, Prince of Wales' Islrind,and Malacca, iviil cease to f orm part of India, and be created a Crown colony. From China we hear of nothing hut Imperial successes over the rebels, and soon will the Celestial Commissioners, who have been scouring Europe in quest of knowledge, and who are now ransacking every nook of Old England, return to tell of their wondrous travel ; they can also tell how the "outer barbarian" just at this unhappy time emulates their own mighty M andarins in the thirst for human blood. From Japan comes nothing worse than that the arrangements now being

made are most favorable to commerce and are progressing rapidly. In America we see the same Radical opposition and Presidential patience, and can only wish the Destructives would listen to the crying wants of their country. Jeff. Davis has the freedom of Fortress Monroe on parole, with other indulgences. He expects to be tried in October, and soon to be out on bail. General Beaure- | gard is now in Liverpool on private commercial matters, and shows equal shrewd- j ness in peaceable barter as in hurling thunderbolts from Charleston Harbor. Lieut. -General Winfield Scott, the great warrior, has died, aged 81. Financing appears equally hazardous work of late with America as with us ; simultaneously with our panic there was an unwelcome run on the American establishments. The Merchants' National Bank at Washington went down in the storm with Ll 37,000 of Government money in its lockers. Gold, 143-?-

Spain has condescended *o raise the blockade of the South American ports, to order home her very " Pacific" fleet, and to declare officially at Madrid that " the campaign is terminated." Whether the Royal lady was afß ; cted with any compunctious visitings of nature, or whether the thrashing she received at Callao induced this marvellous generosity, signifies little ; but certainly Castiliaa chivalry had cause to resret their second attempt at vandalism in May, whilst the effectual defence which the Peruvians offered to aggression should act as a caution to all countries to prepare for similar contingencies. The same dispatch which gave us the bombardment of Callao and the injuries suffered by Nunez and his squadron, also told us that Guatemala, Salvador and Costa Rica, refused to join the other republics in hostilities against Spain ; and that Chili, Peru, Bolivia and Ecuador, were forming an alliance with Venezuela for the invasion of Cuba ; but with the retirement of the vain-glorious Don, we may hope the war is ended, and that we shall hear no more of Spanish indulgence in such wanton pastime. •

Brazil and Paraguay, after much desperate fighting, seem to be near the end of it. We hear of severe naval engagements well fought on both side?, of considerable slaughter and destruction of property, that the allies had crossed the Parana and defeated the Paraguayans in several pitched battles, and that Lopez had burnt his camp and fled precipitately, no doubt being entertained of the complete success of Brazil and a speedy termination of the war.

News comes from the Island of Hawaii of a huge volcanic eruption, surpassing any on record; for 23 days a fire jet of 100 feet diameter, reaching the height of 300 yards, was discernible 200 miles distant at sea, accompanied by detonations audible at 40 miles, the rivers of flame extending 35 miles, and altogether presenting a scene of such awful grandeur as few mortals ever witnessed. # From Honduras, we have a report that eighty peaceable wood-cutters were recently murdered or taken prisoners by tbe Indians. Of this outrage, some stern notice will ba taken, for it will never do to allow British subjects to be captured wholesale, and detained in such barbarous custody. Princess Mary ' Adelaide of Cambridge was married to Prince Teck of Wurtetnburg, 12th instant, at Kew, in the presence of the Queen. Parliament grants an additional L2OOO a-year, which makes her income LSOOO. Bushey Park is to be her home. The Princess Helena's marriage with Christian of Holstein is fixed for July sth. We have no longer a Prince Alfred, he has taken his seat in the House of Lords as Duke of Edinburgh, and amongst the new Duke's earliest performances were city visits to take up his vaiious degrees as Brother Grocer, Brother Salter, and Merchant Tailor ; and he was still further ennobled, at a Guildhall banquet, with the dignity of a citizen of London ; next, in full Highland costume, he presided at the 57th anniversary of the Royal Caledonian Asylum ; and then voyaged to Liverpool, opened the new Birkenhead dock, and distributed nautical prizes. He is Commodore of the Royal Albert Yacht Club, and altogether starts in life as if he really meant business. The Royal family are well. The Queen has had to come express from Balmoral to meet the Ministerial crisis. Dr. Thomas Watson, the Queen's

physician, is created a Baronet. The '• Royal Buck's Horn Oak," the monarch of the extensive forest of Alice Holt, Woolmer, supposed to be a thousand years old, was uprooted in a recent gale. " Olivia Ryves v. Attorney -General," has been decided this month. The aged plaintiff sought to establish her title as Princess of Cumberland, and also to prove the illegitimacy of our Queen, as regards the possession of the Biitish Crown — signal failures both. The documentary evidence is pronounced sheer forgery, and impounded by the Court, and Mr Attorney- General gains the verdict. Her Majesty Victoria still sits firmly on the

throne, and it is not by a scandal of this kind that she will be easily removed.

" M'lntosh v. Great Western RailwayC 0.," which has withstood the perils of 2O years' litigation, is concluded ; the case invoved a Jarge contractor's very large bill* for work and labor done and bestowed, and divers moneys paid, laid out and expended. The original plaintiff died under the agonies of long continued arbitrations and re-heariDgs; and his representatives now compromise for L 120,678 163 8d; and to judge from weighty piles at musty briefs to Counsel, there is but little mar— gin left for the benefit of exhausted litigants. The Lincoln's Inn Benchers have admitted J. P. Benjamin, Es-q., late secretary to the Confederate States, without obliging him to eat his Terms. Our liberal lawyers receive this gentleman in exchange for Edwin James, Esq., who was similarly inducted by the New York Bar; and Mr Benjamin is at liberty to accept this explanati -h as a compliment or otherwise. Ireland is intent on stamping out the cattle plague, which is confined entirely to the County Down, and is no way alarming. There are but few further attempts at Fenian practices, except barbarous murders of obnoxious innocents — abominable crimes, which it is hoped will soon cease \. for the recent news from Canada must surely relieve our Emerald brethren of their cherished absurdities ; and by theses, infamous atrocities they are forfeiting the sympathies of humanity. It has, unfortunately, been found necessary to appointCourts Martial in Dublin, for the trial of soldiers accused of complicity with the plot, and several convictions are recordedf. Baron Wodehouse, the Lord-Lieutenant, is created Earl of Kimberley. Dr Culleiy the Irish Roman Catholic Archbishop, is elevated by the Pope to the dignity of a Cardinal, consequently Archbishop Maaning, ot Westminster, must wait a little longer for the hat so red and so glorious. North of the Tweed there is heated controversy on Free Kirk and Church of Scotland, and the fiaest intellects exhibit dismal specimens of clerical squabbling, hair-splitting and intolerance. A petition is organised tor presentation to the General Assembly in defence of the WestminsteF Confession and against innovations, a petition which the Duke of Argyll refuses to sign. He cannot see that any doubt is cast on confession ; the changes in th" forms of public worship introduced by Dr Robert Lee exceed not the liberty which ought tobe allowed ; the standards of orthodoxy should not be interpreted in their literal sense. Thus he argues; and allowing him to be a very pillar of the church, his honest sentiments should have due weight in. bringing the leaders oi the old school into harmony with the spirit of the age. James Robertson, of the Glasgoio Herald, is excommunicated for Sunday working at the press, and on an appeal to the Free Church Assembly, at Edinhurgh. ther sentence is confirmed. Many grave questions are started without much prospect of a satisfactory solution :— ls the Church of Scotland to be considered liturgical? shall extemporaneous prayer be exclusive ? shalL books and music be sternly prohibited?' how are the innovators to be punished? All these things start up. Presbyteries decide one way; Synods another; Assemblies another; appeals go the round of the Courts ; discipline is almost a. nonentity iv the E-tablnhed Church; ritualism and latuudinarianism stalk broadcast; whilst Stite Church and Free Kirk seem struggling for existence. Doleful dittie?, iv discordant toues, are sung in Caledonia, and we should rejoice ia livelier prospects. The lock-out, unfortunately, still continues on the Clyde. Masters aud men. seem equally resolute. Trade is departing from the river, and nearly 20,000 artisans are unemployed ; but people cannot long; live solely upon air, even though it be on the salubrious Clyde ; and any return tothe status quo ante is repudiated. Emigration on an extensive 6cale is under argument. The " blue jackets" likewise are on strike in all the ports, and the necessities of shipowners are so urgent that sailors easily obtain the higher wage demanded. Tney insist on 70s a month, for long voyages, and also on better accommodation in the forecastle — in fact, * sailor is becoming a reasoning creature. Peaceable meetings are held ; tolerable spokesmen rise to the sur'a2e; and able seamen fairly shew that, in common with. others of the working class, they are entitled to sufficient pay for families. Unhappity, strikes are general, and occaI sion much distress. Indeed, the dangeroustendencies of trades unions is causing seriousr reflection, and Parliamentary enquiry is appointed for next week. The Scotch: iron-masters have just resolved on reducing the men's wages Is a day, owing to the low price of iron. The cattle plague returns warrant the assumption that the disease is declining, and Government wisely determine to keep in force the stringent measures which bring such good resulta. Bat our Michaelmas goose is in sad danger this year ; the prevalent easterly winds brought ia a disorder

ibHherto unknown to the breeders, and fatal havoc is made among the young birds ; stupor affects them, they crouch down lielples?, and die in a few hours ; the early hatched goslings are said to be nearly all destroyed. That we are now quite free from cholera is established beyond question, and yet our shipping is the mark of vexatious quarantine regulations at all the Spanish ports, and, as a natural consequence, at Gibraltar also. TV® re collect how Spain endured the horrid visitation last year, and can account for her present fears; but with clean bills of health, our trade ought not to be subjected to Spanish fetters.

An awful colliery explosion occurred 14th inst. at Victoria pit, Dukinfield, Ash-ton-under-Lyne, the property of Mr Astley. 73 workmen were below at the time, aud 37 lives were lost. It is as usual attributed to carelessness in using the Davy lamp. In Manchester some clever thieves did an extraordinary burglary at the Stamp Office, and carried aw3y nearly LIO,OOO ■worth of Government impressions ; and then came the downfall of the Consolidated Bank, which affected Manchester equally with London.

A terrible fire in the picturesque little town of Ottery St. Mary, Devon, where, aa a rule, the houses were thatched, broke oat on 25th May. It raged for 15 hours, destroyed 111 dwellings, and deprived nearly 500 persons of shelter. This naturally awakens a generous sympathy, and we are comforting the afflicted as "beat we may. No lives were lost. A " Cash Payment Association " is established in London; noblemen and gentlemen having arranged with about 300 leading tradssmen that all members of the society shall be provided with goods for ready money at 15 or 20 per cent. 4>elow the credit price ; and thus, for an annual subscription of 10s, any man, be he rich or poor, may not only keep out of debt and danger, but be well served and effect a large saving to his domestic exchequer.

The fourth grand prix de Piiris, 27th ~v.lt, was won by the Duke of Beaufort's Ceylon, Primate 2nd, Mazeppa 3rd. Our Royal Ascot ball opened 29th ult. The Prince and Princess of Wales were there : the weather was delicious ; the company select in its double sense, and more numerous than ever ; and yet amidst that gay and glittering throng, the sign of the times was uppermost — War 'won the Ascot stakes, and Lucifer was 2nd. Rustic won the Prince of Wales's stakes. Lord Lyon 2nd, Robin Hood 3rd. For H.M. Gold Vase— Elland Ist, The Duke 2nd, Corsair 3rd. For the Ascot Derby — Staghound Ist, Robin Hood 2nd; Ceylon 3rd. For the Royal Hunt Cvp — Attache Ist, Historian 2nd, I-lolly Carew, 3rd. Gladiateur won the coveted Gold Gup, Regalia 2nd, Breadalbane nowhere. We then had the first series of Windsor races ; and next came the plebeian sports at rural Hampton, where the past glories of Greenwich and "Bartlemy" fairs are annually revived ; somewhat vulgar and •uproarious certainly, but a real Cockney's holiday ; and as the weather was fine, the Donkey and Go-cart professors behaved accordingly, and all folks were happy together. At Liverpool, the Summer Cup ■was won, 20th instant, by Terror, Pintail 2nd, Vespasian 3rd. Mr William Robinson has sold off his stud, preparatory to his return to New Zealand. Oi one of his liorees, The Maori Chief, in^h is expected. The wild young Duke of Hamilton, half Frenchman, half Briton, is a determined turfite, and owns any quantity of racers in both countries. Little Tommy Lye, the "wonderful jockey of olden times, has died, aged 71.

Theatrical affairs continue " stale, flat, and unprofitable," and with few exceptions things are carried on at a loss. The Italian stars are still in the ascendant, and amongst their artistes is a certain Signor Mongini, a wondrous tenor, in whose presence the renowned Sinis Reeves himself sings very small. The Keans have concluded their engagement here; they are now under extensive provincial contracts, "which will occupy them, until the summer of 1868, when they propose returning to London to take farewell of the stage. Englishmen are rejoicing in the probable return of national taste for national music. The present season witnesses an unusual display of our matchless ballads, our glees and madrigals ; and it is suggested that if we can once get a fair itart in the old line of business, we shall 1 c able to hold our own against the foreigner— a consummation devoutly to be wished! for verily has native talent had a long bad time of it. Mdlie Edi (Mrs John Haines) of H.M. Theatre, formerly Miss Cotteiel, died suddenly, 2nd inst., aged 25. As an actress and siDger, she was rapidly mounting the ladder of fame, and gave promise of first • xate qualities.

A Volunteer review was held in Hyde Park on Saturday, under the direction of the Duke of Cambridge, Sir Hope Grant, and a large staff ot celebrities. Above 15,000 men assembled, many of them coming hundreds of miles for the honor of

being inspected by tip-top commanders in the British army. It was an admirable performance, and the men were highly com plimented on their efficiency. A Volunteer review in London is a novelty. There have only been four within the memory of man, and on this occasion our famous park was not large enough for the multitude. Ruffianism, with no more notion of Reform than of refinement, took advantage of political dissensions to misbehave itself; and the good Lord Elcho was specially selected for a "mobbing," but, beyond some unsavory observations, he fortunately escaped ill-treatment. Rowland Hill's cheap postal scheme brings astounding wealth; the revenue L increases so rapidly that it bids fair to eclipse the income tax, and then comes the question what to do with it. Five milliona annually is very properly termed a good round sum. with which many things may be accomplished ; - but ere it reaches that magnificent figure, it is thought lower rates should obtain — the Post-office never being intended as a source of revenue at all. Mr Gladstone is loth enough to part with the treasure, and, as it is too late to meddle with it this year, there's time for study. The General Post Office is admitted to be one of the best-conducted institutions of the country; and when the subject comes fairly under discussion, the numerous over- worked servants, who contribute so much to bring about the grand sum total, should not be forgotten. The Great Eastern is preparing for another ocean trip with the mysterious Atlantic cable, and will leave Sheerness 30th instant, with every appliance. The directors are more sanguine than ever. There's money galore ; improved cable and superior machinery to work it ; more skilled hands are employed, and with better supervision. Every department contains men whose whole souls are in the cause, with dear-bought experience, and a perfect \ horror of failure ; and should the laws of nature be not dead against them, they must succeed. The big ship will coal next week i in Bantry Bay ; she will be convoyed by H.M.S. Terrible, and expects to sail about July 15th from Valentia on her wonderful errand. 1

H.M.s. Niobe, 4, was recently launched ; her sister ship, the Nymph, being daily expected to follow suit. The triumph of Captain Coles is now recorded ; turret ships can carry guns of any calibre, and are established'asthebe all and the end-all of future naval warfare. There was a serious trial off Spithead last week, when the Royal Sovereign's turret took kindly such a battering from sundry 250 pounders at 200 yards as to convert at once our Admiralty Lords into staunch disciples of this new engine of destruction ; and now, to make up for lost time, our best efforts are devoted to the grand idea of the muchneglected Cowper Coles. Captain A. Moncrieff, of the Edinburgh Artillery Militia, has invented a system of defence by gun pits and protected barbette carriages of vast importance when working heavy ordnance in siege and garrison duty, and well calculated to economise labor, material, aud life.

Captain Maury, the scientific American j mariner, the founder of the meteorological departments, the author of those ocean charts which so wonderfully facilitate navigation, by shorteniug distances, and saving both life and property, has been entertained at a public banquet in London, when a purse of 3000 guineas, contributed by grateful nations, was presented to him. The meeting was attended by representatives from lorelgn climes ; and all testified to the great benefits conferred upon mankind by the philosophical researches ol Captain Maury, who has, in the words of Humboldt, literally discovered the physical geography of the sea. Obituary. — Prince Paul E3terhazy, the splendid Austrian Ambassador, aged 80 ; John Francis, Earl of M&r, premier Earl of Scotland, and a Waterloo man, 71 ; Earl of Rosslyn, 64 ; Earl Bathurst, 76 ; Lord Vernon, 63; Earl of Chesterfield, 61; Earl of Gainsborough, 84 ; Sir John Stuart Forbes, Bart., 62; Sir T. Kokewode Gage, Bait., 56 : Sir E. D. Burrowes, Bart., 67 ; Sir Bellingham Graham, Bart., 64 ; Sir W. M. T. Farquhar, Bart.. 57 ; General Sir J. M. Tyldtn, 80 ; General S. Swinhoe, 79; General T. H. Paul, 82; Colonel Seobell, Royal Marines, " who fought with Nelson at the Nile," 88; Admiral G. G. Lennock, 91 ; ilearAdmiral Clark, 71 ; Commander G. C. Greenway, 70; Commander A. R. Owen, 45 ; Captain M'Clintock Bunbury, R.N., 66 ; Mr Kenyon S. Parker, QC, 78 ; Professor Rev. Dr. Lindsay, of Glasgow, 63; Rev. F. Mahony, better known in literature as " Father Prout," 62. John G. Gilbert, artist, 72; John Hughes, herald painter, 81 ; Dr Grreville, botanist, 66 ; Dr Alexander Ure, F.R.C.S., 49 : Dr Hy. Blenkinsop, F.R.C.S., 53 ; Mr Matthew Clark, head of one of the oldest firms in the London wine trade, 80; the well known literateur Joseph Mery, died in Paris last week, aged 68 ; one of the lights of the age, he was like our own Tom Moore and many other brilliants, regardless of the common maxima of life, and

died poor as a church mouse instead of a } millionaire. (

Our sick Bishops are all getting bettef, and the good Dr Tait has recommenced his active career. Some time ago he originated "the Bishop of London's fund," having for its object an addition to the clergy and the provision of permanent stipends to meet the religious wants of London's suburbs. One million sterl.ng was considered the requisite sum for such purposes, and the subscription opened very promisingly ; but a million is not easily collected, and now after his lone illness he redoubles his efforts, not only to benefit the cloth but for the common weal. 26th June.

10 per cent, has been the Bank minimum throughout the month. Consols have naturally been very unsteady. This day's quotations are 86^ for money, and 87 for

the acconnt.

The City Banking House of Sir Chas. Price, Bart, suspended payment yesterday ; asalso Snead and Co, the Chepstow Old Bank.

The Queen not arriving from Balmoral prevented the promised explanation last night. We could only learn that Ministers had tendered their resignation, which her Majesty would not accept without a personal interview. She will arrive in England to-day ; Ministers go to Windsor at 1 o'clcck, and at 6 this evening we shall know whether there's to be a change of Ministry or another general election, or whether the alarming state of Europe wili be considered and a compromise effected between Whiga and Tories, on the understanding that Reform is to be shelved for the present.

Spain is again in the throes of revolution. On 22ad inst. several regiments revolted, and great loss of life is reported. The latest telegram reports " rebeb are subdued, and all is quiet." On the 23rd v the Italians crossed the Mineio 80,000 or 90,000 strong; and a sanguinary battle, lasting two days, took place in front of Verona ; it is called the battle of Custozza. The Italians were defeated, and re-crossed the Liincio.

The Prussians are everywhere victorious in Northern Germany ; the Elector of Hesse Cassel is taken prisoner and dethroned; the King of Hanover, the Crown Prince and the army, are eaid to be surrounded if not already prisoners in the hands of Prussia; the Austriaas under Benedek are in Bohemia, where it is supposed the first great battle will be presently fought. From New York, June 16, we hear the Fenians had nearly all left the Canadian borders, and that the Atneiiean authorities were determined to prevent any more invasions. Gold, 158 J.

Jt is expected industry will be shortly resumed on the Clyde.