The Sun.
London, England, 1834-09-02 00:00:00

MADRID, Atm: 25.

(From the Spanish- Papers.)
The news from the theatre of war which has this day
been received by the Government is not very satisfactory.
kodil begins to despair of success, or at least he regards the
termination of the contest as still very remote. What
'Melly renders the situation of the Government critical is
the penury of ,the .Treasury, in,curisequenee of which it is
impossible toinsiutain and payfrorn 15,000 to 20,060 men
in Navarre. ThirGovernment, in this state of embarrass-
ment, seeks everywhere for capitalists willing,to open their
purses, but it must be confessed that the plan of Count
Toren') is not well calculated •to facilitate the discovery.
The Finance Committee met to-day, and is expected to
have another meeting to-morrow. All its sittings have,
however, as yet had no decisive result. The reporter is
not yet "chosen, but nevertheless it is alleged that a plan has
Seen determined on almost unanimously. It appears that
the committee will recognize no loans contracted since 1823,
except those of Cortes. The report will therefore be op-
posed to Toreno's plan. Rayneval has made representa-
tions on this subject to the Government, but has as yet re-
ceived no explicit answer. The Ministers merely say that
they must leave it to the Cortes to decide en the financial
plan. There is still a report of an approaching modifica-
tion of the Ministry, and some even go so .far as to say
there will be a complete change. On Wednesday or
Thursday the' Finance Committee may be expected to
present its 'final decision on Toreno's plan. The committee
appointed by the Proceres will make its report on the suc-
cession on Wednesday next.
Yesterday evening 11 prisoners, nearly all of superior
rapic, who had been treskjed to an hospital on account of
sickness, escaped, alpng witOiliesericeant on duty, and
some soldiers who gxf 4-thavicksaviong these fugitives
in
are see persons co Biliiisek ilt:Thaialfair of Estefani, and
come officers of distinalid implicated in the 'conspiNcy,
against the Government. It is reported that the fugitives
hive been -retaken i ha' this is a report which much re,
quires confirmation. " The trial of Estefani is not yet ter-
zninated.

The Queen still resides at La Granja, and it is said that
the cholerA has appeared there.. This scourge has .com-
mitted great ravages in the provinces, particularly at Val-
ladolid, where 150 'persons die daily. Several physicians
have been carried off by the disease.
El Observador, a journal in the interest of Count Tore-
no, contains the following reflections on an article in the
Journal des Debate of the 14th instant, relative to the plan
for liquidating the Spanish debt

.‘ Let the Journal des Debats discontinue its complaints
and its regrets for the situation of the French creditors in
the sense which it attaches to its lamentations. It is truly
strange that the Journal des Debats never before now per-
ceived that we required to be enlightened. It is still more
strange that it did not make this discovery in 1823, when
it was the journal of M. de Villele ; but now makes it, be-
cause the Paris Exchange is closed against a Government
which cannot fulfil its obligations. The Journal des Debats
knows very well that much evil and scandal and even rob-
bery might have beeasvoided,if, under such circumstances,
the Exchange had hdiftt shut against other negotiations.
" As to what concerns the holders of the paper for whom
the Journal des Debats shows so lively a compassion, and
whose fate appears to cause so much distress, they would be
much, less to be pitied than the holders of the Cortes bonds,
though the latter were to be more favoured than they.
" The Journal des Debats states that the French Govern-
ment has already made energetic representations against a
measure which is so disastrous. We shall only reply, that
the affair is one on which the Cortes will decide. Never-
theless, we see with surprise the patriotic feeling which the
Cabinet of the Tuileries displays in protecting the interests
of the French creditors—that Cabinet which has hitherto
always regarded with so different an eye the complaints
concerning the other loans of 1823. To make an affair of
state for one, and to hard abandoned the others to their
fate, appears to us an enigma. Who shall supply us with
its solution•P''

( From the Madrid Gazette of August 24.)
ROYAL DECREE.

." Considering that the safety and the tranquillity of the
kingdom require that the most rigorous measures should be
taken with regard to the party spirit and the sordid inte-
rests which cause the continuance of civil war in some of
the provinces ;
" Wishing, on another hand, that all attempts to land
any arms or warlike stores in the northern ports for the
use of the Spanish rebels should be prevented, and that
thereby the evils which might result from the landing of
such objecis should be prevented, I have ordained as fol-
lews,-in. the name of my beloved daughter, Isabella 11., and
with the advice of my Ministers in Council assembled
" Art. 1.. Besides the laws and rules in vigour relative to
the general prohibition of arms, ammunition, and other war-
like stores, by-means of importation, others more especial
,and vigorous shall be created, which shall include the whole
line of coast from Cape Finisterre to' the mouth of- the
.11idassoa.
" 2. The vessels belonging to the Royal navy, the boats
and coast-guards, and other Spanish craft, shall oppose by
. force, in concert with fortified places, forts, and land bat-
teries, the landing of all the abovementioned stores, seeing
that they are only sent for the purpose of keeping up civil
war in this kingdom.
" 3. Every vessel found within six leagues of the above
described coat, loaded with warlike stores, and about to
:land any provisions, shall be considered as suspected of
-entertaining hostile intentions. Consequently its cargo
• shall be seized, and the arms and warlike stores found on
board shall be detained, as well as the vessel itself, until
final decision, which decision shall be regulated according to
• • the gravity of the case, and the circumstances attending it.
"4. My Secretary of State-despatches shall immediately
communicate the present decree to all the Ambassadors,
Ministers, Diplomatic Agents, and Consuls of Foreign
Powers, accredited to -my beloved daughter, so that the
necessary publicity be given to the measures adopted, and
that those who may be disposed to act otherwise may not
be ignorant of them.
5. The other Secretaries of State-despatches, each as
he may be concerned, shall communicate my orders re-
spectively, and shall take note of contraventions, so that
ray Royal decree may have full and entire effect.
" You shall hold it as understood, and see to the execu-
tion hereof.

(Signed by the Royal Hand.)
" St. Ildefonso, Aug. 21.
" By the Queen,
" A. D. F. MARTINEZ DE LA ROSA,
President of the Council of Ministers."

BAYONNE, AUG' 26.—After all the turnings and wind-
ings of the faction of Navarre, they are at length fairly
beaten back upon our frontier, pursued by about 15,000
or 16,000 of the Queen's troops. Will they be able to
escape from these troops ? It seems unlikely ; though,
after having so frequently beheld the Carlists surrounded,
and yet eluding their pursuers, favoured by the mountains
and defiles which cover the face of the country, we shall
await the result. It is also certain that Don Carlos him-
self, escorted by the sth battalion, is hotly pursued by
Jauregui, who is' marching with all expedition on Tugui,
where the Pratend'er *as staying on the 24th. Rodil,
, with the principal. portion of the force, is in pursuit of
Zumalacs.rregn ,tl?n7naa tlaitr -himself upon Roneesvalles
and Espinal. , If thq rebels do not fall upon some expedient
to extricate themsolyoifroM the position they aro now in,
a decisive action cannot he far off.
Rodil has caused many persons to be arrested on the dif-
ferent points he has traversed.
The Carlists of Biscay, who had taken refuge in Le-
queitio, in order that they might defend themselves to more
advantage, had mounted in battery two four-pounders.
Nevertheless, the place was carried by Espartero, the
Queen's General.

Copy of the contract between the Spanish Government
and the house of M. Ardoin.
" The undersigned Don Jose Maria Quespo de Llano,
Conde de Toreno, of the Council of State and Secretary of
State for the Department of Finance, authorized by the
Royal orders of her Majesty the Queen Regent, in confor-
mity with the opinion of the Council of Regency and
Council of Ministers.
" And M.A. Ardoin, banker in Paris, in his own name
and in that of his copartners, have agreed on the following
conditions.
Art. 1. M. Ardoin obliges himself to advance to the
Royal Treasury of her Majesty the Queen 12,000,000 reals
monthly, beginning with the present month, until the
Government has been authorized definitively to negotiate a
loan. Nevertheless, this anticipation is not to extend
'beyond four months, beginning with the current month of
auly, and is therefore not to exceed 48,000,000 reals.
"'2. Betides the monthly anticipations specified in the
first article, M. Ardoin obliges himself to reimburse the
:Messrs. Rothschild,"brothers, of Paris, the sum of 60,000,000
reale advanced by that house to the Spanish Government,
for the payment of the six Months' dividends due. in Paris
on the Ist inst., together with the interest and commission
connected with that transaction. It is nevertheless agreed,
that if the loan to be contracted by the Cortes and the
Government shall be effected with any company not repre-
sented by M. Ardoin, the repayment of the above-mentioned
60,000,000 reals shall no longer be at the charge of the
said M. Ardoin.

" 3. These two species of anticipation shall be effected
in exchange for bonds of the Royal Treasury, at six and
nine months' date, at 5 per cent. interest. These bonds
shallbe gi ipaisteti in pounds sterling, with capital and inte-
rest. They are to he received in payment of the first loan
contracted by the SfAnish Government.
" 4. The payment' of these bonds, both capital and in-
terest, or their adiniesion in the next loan, is secured to the

holders of them in Cortes bonds, of which the house of Ar-
doin will render an account to the Spanish Government.
and will, in the hands of those gentlemen, be specially ap-
plied to the present guarantee. This determination is not
in any way to injure these bonds, nor to affect whatever
the Cortes may resolve in relation thereto.

"5. The payment of 12,000,000 reels monthly, stipu-
lated in the first article, shall be made in bills of exchange
of Madrid on London, or in draughts frOm London on
Madrid, or in remittances of ingots of gold or bars of silver,
which shall be received under the conditions stipulated in
the old agreements, deducting 2 per cent. for charges of
negotiation, carriage, and other expenses.
" 6. Her Majesty's Government oblige themselves to
recommend to the ensuing Cortes the interest' of the holders
of the bonds of the old Spanish loans which were issued in
foreign countries in the years 1820, 1821, and 1822.
" Done in triplicate at Madrid, on the Bth ofJuly, 1834.
" El Conde de TORENO.
" ARDOIN."