GERMANY.

Press, Volume II, Issue 51, 3 May 1862, Page 4

GERMANY.

German politicians are much occupied with a contest now going on between Prussia, Austria, and the smaller powers, as to the improvement of the Federal bond. The details of the negotiations are very obscure, but the principles at stake seem to be briefly theße. All the German States are agreed that some change must be made, —that Germany, for example, must have better means of defence, and a more definite foreign policy. Austria lays down as her principle that any change must include all the States, and has suggested plans, such as an alternate leadership between herself and Prussia, or herself, Prussia, and the smaller States. She will, however, consent to almost any arrangement if collective Germany will guarantee her non-German territories. The Catholic States generally agree to this view. Prussia, on the other hand, argues that the bond is too close already, and cannot be drawn any clnser, because smne of the Powers have their basis of strength outside the federation—these are Austria, Denmark, aud Holland—and prefers to form within the federation an interior league, to be effected by certain States yielding to her the control of their "armies and of their foreign relations. This irritates Austria, which, in a note dated the 14th of February, protests against Prussian tendencies. The Prussian note, in reply, contains a frank confession that between Prussia and the members of the Austrian coalition there is scarcely the possibility of an agreement on the points at issue. "From the whole tone and tenor of the correspondence between the two grout German Powers we should be almost tempted." Bays the * Morning Post' "to anticipate at no distant period the formation of a Federal and Confederate Germany, just as surely and certainly as any impartial observer might a year ago have done with reference to the States of the North American Republic" The Prussian cabinet has signified to the Diet that it cannot permit the troops of any other Power to cuter Hesse. Consequently the Elector and his subjects must settle matters between them without the Au e trian intervention, which in 1848 crushed ihe Hessians. The empire of Austria has been visited with severe inundation*. The Danube has overflowed its banks, and from Vienna to Hungary whole districts are under water, often so deep us to reach the lower brandies of the trees. Whole villages have been ruined, the communication is interrupted, and subscriptions* are collectinsr in Vienna for tlie ruined peasantry. The Moaldiiu. Elbe, Eger, and smaller rivers have also risen, and on the Bth February if became necessary to take precautions for the safety of the capital.