The Press.
London, England, 1857-05-09 00:00:00

AMERICA.

A telegraphic despatch from Washington, received
at Boston, states that instructions had been sent by
the George Law for the United States' squadron at
the Isthmus to I►old itself in readiness for any
emergency that might arise. It was understood that
the United States' steamers in the West ln.lies would
also proceed at once to join the squadron at the
Isthmus. It was said Government would make one
more effort to arrange the pending difficulties by
negotiation, but, failing this, the United States would
proceed to take possession of both sides of the Isth-
mus. Diplomatic relations had been sus; ended with
the Granadian Government. The British and foreign
Ministers at Washington I►ed been informed of the
intended actizn of the American Government.
The New York Courier writes :

As the invaders of Nicaragua are by this time expelled
or exterminated, that country must soon come under the
operation of the Dallas and Clarendoi treaty. It will be

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the first duty of the British and American Governments to
unite with those of the other Central Ainerican States to
regulate the affairs of this region in such a manner as will
repair, so far as possible, the evils caused by the late war.
It will probably be for the interests of all the States to
abandon the plan of partitioning Nicaragu i, and leave her
to the protection of the treaties between the powerful
nations who have now assumed the relation of advisers
and protectors. There. is no other possible mode of
settling the affairs of the country than by a system of
active and enlightened intervention. The first duty of the
United States is to offer an adequate compensation in
money for the outrages of our citizens, who have devas•
tated and ruined Nicaragua in the vain attempt to conquer
it. It should then restore to the Transit Company
its property and business, and adopt the necessary measures
to protect this channel of communication from future
interruptions.
The New York State Legislature had passed a
bill declhring in effect that no slaves shall be bought
within the boundaries of the State, thus ntillifyin4,
as far as possible, the recent decision of the Supreme
Court in the Dretl Scott case.

A despatch from Mobile says that Havannah news
to the 13th ult. had arrived there, from which it
hppeared that the assassination of W. Sidney Smith,
Britisb Consul at Havannah, had been attempted, on
account of his expo,ures of slave transactions.
A correspondent at Havannah, writing on the 10th
ult., states that the prevailing opinion was that there
would not be a war between Spain and ➢iexico.

THE AUSTRALIAN MAILS.
SAFETY OF THE "

The usual overland despatches from Alexandria of
the 23rd ult. announce the arrival of the European
at Suez on the 19th, with the Oneida's passengers
and 50,000/. worth of gA. Her dints are Sydney,
March 11 ; Melbourne, 13 ; King George Sound, 21 ;
Ceylon, April 5.
The Oneida put hack to King George Sound.
She broke sole plate and crank pin 400 miles north
of Cape Erwin ; the damages were temporarily
repaired, and she left the Sound for Sydney, March
22nd.

The Australian Ministry at Victoria had be'n
defeated by a majority of 29 to 23 on a resolution
brought forward by O'Shanassy, and has resigned.
The new Ministry is thus comprised :—O'Shanassy,
Chief Secretary ; J. H. Chapman, Attorney-General ;
J. V. F. Forster, Colonial Treasurer; C. G. Duffy,
Commissioner of Public Works; J. J. A. Greeves,
Commissioner of Crown and Land Survey ; J. D.
Wood, Solicitor-General. The Assembly adjourned
for one month, to give time for the elections and
arrangements.

NeW's from Sydney wag unimportant. The Donald-
son Ministry was not very secure.

THE UNITED STATES AND NEW GRANADA.
THE state of affairs between New Granada and the
American Government attracts the attention of
Western diplomatists. We subjoin an article from
the New York Herald:—

Mr. Morse, the special commissioner sent by the Pierce
Administration to Bogota charged with the settlement of
the difficulties arising out of the Panama massacre of the
15th of April, lyiti, and out of the new laws of that republic
in reference to tonnage duties and increased impost on
mail matter passing through the isthmus, has been corn-
pletely unsuccessful in his mission. The New Grenadian
Cabinet disclaims all responsibility for the loss of life and
the pillage occasioned by the Panama riot, and distinctly
avers that that unfortunate event arose out of the improper
conduct and violence of Americans As to the other
matters, the Cabinet declined to discuss them, probably on
the ground that it could not interfere with the legislation
of Congress. Mr. Morse and our resident Minister there,
Mr. Bowlin, then submit'ed an ultimatum that the New
Grenadian Government pay art indemnification of 400,000
dollars for the affair of Panama, and grant certain conces-
sions as to the right of intervention by the United States
in the police government of the isthmus. What the con•
cessions were had not transpired in Bogota at the time of
the departure of the mails. The ultimatum, however, was
peremptorily rejected. Thereupon Mr. Morse broke off
the negr.tiation, and announced that Mr. Bowlin would also
withdraw. The former was on his return to the United
States. The question now comes direct home to the Ad-
ministration of Mr. Bnchanan, what course shall be taken
to exact reparation and indemnity from New Granada for
the wholesale assassination and pillage of American citizens
at Panama, and to afford protection to our citizens crossing
the isthmus against a recurrence of such scenes? The
course recommended by Mr. Corwine, the commissioner
who was sent to investigate the circumstances, would seem
to be the simplest and most effectual for the accomplish-
ment of both these objects ; that is, that our Government
should seize and hold military occupation of the isthmus
until reparation be made for the past and security ;liven
for the future. The New Granadians evidently expect the
adoption of that course. Their journals clearly intimate
as much, and appeal to the patriotism of the people to
prepare to resist the expected aggression. They appear to
think that it is the only course left to our Government,
unless, indeed, we back down from our demands, and
acknowledge that we were wrong and New Granada right.
It would appear, too, as if the Administration took the
same view of its duty and policy, for the war steamer
Wabash has been ordered to Aspinwall, and other national
vesssela are to follow the Wabash. 'f his looks like action.
It does pot appear that in the negotiations which took

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place any proposition was made on either side to submit
the meter to arbitration. One of the Fanama journals,
however, properly suggests that, as an escape from the dif-
ficulty. In view of the relative strength and weakness of
the two nations, and of the amicable relations that have
hitherto subsisted b..tween them, Mr. !Weinman nifty still
deem it an act of mingled generosity and policy to propose
the submission of the matter to arbitration. The course of
our Administration in this delicate matter becomes a most
important question.

The rupture between the two Governments is cer•
tainly complete.