The Sun.
London, England, 1866-08-13 00:00:00

" good chance." When he reached that of Madame
Hattenfeld he found nobody but herself and her
grandson. He asked her for money, and on her
refusal, in the presence of her child, he stabbed her
to the heart with a knife which he always carried
about with him. While he was searching the house
the child escaped and gave information to the
police before the assassin had left. He attempted
to stab the policemen. The escape of the child was
providential, as the wretch said he intended to kill
her also to prevent her from giving information of
the murder of her grandmother.
Garibaldi has written a letter to the editor of the
Gazette de Milan, in which he denies that he had
expressed his satisfaction to the President of the
Italian Cabinet at the conclusion of an armistice,
which he says is " little honourable for Italy."
A mighty pretty mystification is in progress be-
tween some of the Paris papers. M. Paulin
Limayrac, the editor of the Constitutionnel, said he
would give 100,000 f. " to the poor" if any one
proved that the Constitutionnel had ever been dis-
avowed by the Government. Various proofs of dis-
avowals have been given. The Frenchman, it is
said, is born malin, and some of the papers have
announced that M. Limayrac had sent the 100,000 f.
in performance of his promise. M. Henri de
Riancey, editor of the Union, is prominent in his
satire, and gives his opinion that M. Limayrac
would feel more pleasure in receiving the 100,000 f.
than in paying them, although he says he knows
nothing of his circumstances. To-day the Siecle
publishes a letter from M. Limayrac denying that
he has sent the money, and " maintains his own opi-
nion still" that he was right in his assertion.
The Moniteur alludes to the various unfounded
surmises occasioned by the return of the Emperor
to St. Cloud from Vichy, and states that his medi-
cal attendants interrupted the treatment he was
undergoing .at the latter town. My information
proves correct, and one of the reasons for the return
is the Emperor's desire to be in Paris during his
fete. There is no political motive whatever in this
unexpected return. The Moniteur adds that his
Majesty is much better since his return to St. Cloud.
Two Cabinet Councils have been held since the
Emperor's return.
The Empress of Mexico (the daughter of the late
King of the Belgians, and sister-in-law of the pre-
sent Emperor of Austria) has arrived in Paris.
Her Majesty landed at St. Nazaire in the Impera-
trice Eugenie, which left Vera Cruz on the 13th of
July.

II is officially stated that the suspension of arms
between Austria and Italy was prolonged 24 hours,
in consequence of an understanding between General
de la Marmora and the Archduke Albert, who is at
Verona. At the expiration of that time the treaty
was signed upon the basis of the frontier of the
Lombardo-Venetian Kingdom. The desire for
peace, says the Moniteur, is universal in Italy.
There will be two distinct divisions at the Grand
Exhibition—the Park and the Palace. In the
Palace will be the products of all countries, and by
the plan which will be published visitors can easily
visit anything which may interest them. The
Palace will be traversed by 17 avenues converging
upon the central garden. The extent of the two
divisions may be judged of from the calculation that
a person walking at the rate of about three miles
an hour, for 10 hours a day, would employ a week
in traversing both divisions. There will be from
25 to 30 circular alleys under the 10 or 12 naves.
It is now settled that the agricultural exhibition will
be included. There was a report to the contrary.
Should any of your readers desire to be in commu-
nication with the Imperial Commission for regulat-
ing the affairs of the Exhibition, they should write
to that body at the Palais de l'lndustrie (No. 4),
Champs Elysees.
The correspondent of the Siecle at Berlin gives
some particulars of great interest relative to the
communications between France and Prussia, and
is much more explanatory than the Moniteur. He
has derived his information from no less a personage
than M. Bismarck. The Ambassador of France has
had two interviews with M. Bismarck, during
which some arrangement relative to a change on
the frontiers of the Rhine was discussed. Such a
change was plainly stated to be necessary in conse-
quence of the great aggrandisement of Prussia. On
leaving M. Bismarck, the writer of the letter said,
"Do I take news of peace or war to Paris ?" M.
Bismarck replied, " Friendship, the most durable
friendship, with France. I have the firm hope that
Erance and Prrssia will form the twin (dualisme) of
intelligence and progress. I expect to go shortly
to Biarritz, which is my fountain of Jouvence."
In another interview with the correspondent, M.
Bismarck, speaking of Italy, said—" Italy deserved
a better fate. I cannot conceive why, after the
battle of Custozza, the Italians recrossed the Mincio,
or why that battle is spoken of as a defeat. All
the accounts I have received of that battle, not from
the Italians, but from Prussian agents, prove that
the Italian army did not lose that battle, because
they did not lose their position, and they did not
experience losses equivalent to a defeat. AI. de la
Mamora might have announced a victory, and if,
instead of recrossing the Alincio, the army had
marched the next day in advance and pursued their
military operations, the face of things could have
been entirely changed." The correspondent de-
scribes AI. Bismarck "as most affable and mild in
his manners, a good husband, and a good father."
The fresh difficulty between Austria and Italy is
this. Austria wishes to limit herself purely and
simply to the cession of Venetia. Italy claims the
whole of the Italian territory, comprising the Italian
Tyrol and Istria. I have before briefly explained
this, and the explanation is now officially confirmed.

THE SUSPECTED PRIVATEER.--Tlie Tornado, after
lying in the Roads for 14 days, has cleared out at the Cus-
tom-house for South America. She took on board a quan-
tityof pig-iron, coals, machinery, and general stores, such
as are usually supplied to merchant ships bound for foreign
ports ; but she had no cargo. Her former crew having
claimed their discharge were paid off, and a new crew,
numbering nearly 60 hands, engaged in their place. The
Tornado sails under the command of Captain Collier, but
Mr. Isaacs, the gentleman who was on board of her at the
Faroe Islands, and whose right leg was fractured there
through a fall, does not accompany her this time. The
Tornado being ready for sea, she got up steam yesterday
morning, and at 4 o'clock weighed her anchor and steamed
down the Firth. The frigate Dauntless, 31 guns, steamed
up the Firth on Thursday afternoon, and cast anchor near
the Tornado. It was thought by some that she would
keep the Tornado company so long as she remained in
British waters ; but she did not do so, for the Dauntless
remained at her anchorage in the Roads till the afternoon,
when she left ; but whether to watch the doing of the sup-
posed privateer or not, has -been kept secret. The owner
of the Tornado, or those representing him, deny their in-
tention of takinghostile action against the ships or Govern-
ment of any nation, but they admit their intention of dis-
posing of the vessel to the highest bidder, whether Spa-
niards or Chilians, to be used by the purchasers either for
warlike purposes or for the peaceable pursuits of com-
merce. They (those representing the owner, who is said
to be a Mr. M'Gregor, of Glasgow) state that the Govern-
ment of Spain made an offer for the vessel, but as it was
not accepted, on the ground of being too low, they sus-
pected the ship would be offered to the Chilians, and hence
the reason of that Government endeavouring to make it
appear that she was being fitted out as a privateer. Where
the Tornado may go to is of course not known, but it is
supposed that she will not go far on her voyage before
another attempt will be made to provide her with guns,
&c., so as to make her all the more attractive in the eyes
of belligerents. The new crew are engaged to serve on
the outward passage and home to port in Great Britain,
unless the vessel be sold, in which case it is agreed that
they shall be discharged, and their
passage paid to Eng-
land.—Seotsman.

THE HIGHLAND MOORS.—Sportsmen are now
arriving daily in great numbers at Inverness, on their way
to shooting quarters, and where deer-stalking or salmon-
fishing can be enjoyed they are already established. A be-
ginning has been made in several forest, and the deer are
found to be in good condition, the heads in many cases
being nearly free of velvet. Mr. Horatio Russ writes in
high spirits from his new forest, near Eva.nton, in Ross-
shire. He says —" I went out on Friday for the first time,
and was very much pleased. I saw in different lots on it
122 stags, besides a good many hinds—many very fine,
clean, with such head's as I have not seen for many seasons
now. I did not, however, fire at the very largo deer, as
their heads were not hard, but contented myself with one
13-stone stag, which I found in very goad condition.
Grouse are literally swarming
season, in my recollection, has, and very well grown. No
opened in Ross-shire with
fairer prospects for sportsmen." We continuo to receive
very favourable reports of the moors from all parts of the
north. The late rains may have proved fatal to the very
young birds, but almost everywhere grouse aro so forward
as to be out of danger for drowning. Almost every moor
in the Highlands has
been taken this season.—lnverness
Courier,

LATEST INTELLIGENOF.

(REUTER'S TELEGRAMS.)

FRANCE.
PARIS, August 13.

The Constitutionnel of this morning publishes an
article upon the rumours respecting the demand for
compensation addressed by France to the Prussian
Government.

The article says :—" It is important not to allow
public opinion to be led astray on so serious a pro-
posal. Without doubt it is possible that France
has a right to compensation ; but to believe that a
programme has already been drawn up and already
rejected would be to misunderstand the ordinary
character of diplomatic negociationz, and not to
take into consideration the very friendly relations
between the two Powers. Moreover, it would be
forgetting that the true interest of France is not to
obtain any insignificant territorial aggrandisement,
but to aid Germany to constitute herself in a more
favourable manner for her own interests and those of
Europe."

AMERICA.
(By Atlantic Telegraph).
NEW YORK, Aug. 9, Evening.

Gold, 148 i; Exchange on London, 159 f ; Illinois,
122 ; Erie, 68f ; 5-20 Bonds, 1091; middling Up-
land, 34.

NEW YORK, Aug. 10, Evening.

Gold, 1481; Exchange on London, 159 i; Illinois,
122 ; Erie, 691; 5-20 Bonds, 1091; middling Up-
land, 34.

PARIS, August 11.—Two o'clock.----The market
opened under the impression of rumours of political
difficulties having arisen to interfere with the con-
clusion of peace, which have again had the effect
of restricting business within very narrow limits.
French Threes were done at 68f. 90c., or 2f c.
lower ; Italian Fives at 52f., or an improvement of
10c. ; Credit Mobilier 640 f., or a fall of 3f. 75c. ;
Credit Foncier at 1,300 f., or sf. lower. Comptoir
d'Escompte are unchanged at 867 f. 50c. The Rail-
way Market is rather firmer.
Three o'clock.—The market closed without any

variation of consequence
41 per Cents 9B
Do. and month —
3 per Cents.
Do. end month 6B 90
Credit Mobilier 615
Do. end month 641 25
Credit Foncier 1295
Do. end month 1300 -
RAIL'

Orleans

Bank Shares 3550
Italian Loan 52 20
Do. end month 5l 90
Mexican Loan 29 50
Do. Bonds 173 75
Spanish Threes
Home Debt
Deferred
'AYS.

For Account.
870

Northern 1133 75
Lyons and Mediterranean B7l 25
Southern 530
Western
Eastern
Sardinian
Austrian

Lombard
North of Spain
Saragossa
Ditto to Barcelona
Roman

536 25

380 -
103 75

THE ATLANTIC TELEGRAPH.

The following telegram has been received by
Reuter's Telegram Company (Limited), at 2.24 a.m.
August 12, from Mr. R. A. Glass :
" VALENTIA, Aug. 12.
" NEWFOUNDLAND, Aug. 12. —Expecting news by
Gulf Cable every moment.
" The sudden stiff breeze of yesterday is now
moderating.
" All going on well."

The following telegram was received by Reuter's
Telegram Company (Limited) at 2.7 August
13, from Mr. R. A. Glass :
" VALENTIA, Aug. 13.
"The following has been received from the clerk
in charge at Newfoundland :
" Gulf St. Lawrence cable repaired, and work-
ing well. The wind and sea here are calm.—
Aug. 13.' "

Naval and Military Inteligence.

---~+- --

The Darra sailing Indiaman arrived at Spit-
head on Saturday evening from India with military
invalids and time-expired men under contract with
the Council of India. She sailed from Madras on
the 17th of April, and from St. Helena on the :26th
of March. The troops from both the Merchantman
and the Darra will be disembarked this morning
under the superintendence of the Quartermaster-
General's Department at Portsmouth, and the two
ships will afterwards sail from Spithead for the
Thames to deliver their cargo of Indian produce.
A draught, consisting of three officers and 125
non-commissioned officers and privates of the depot
100th Regiment, ;has received orders to be held in
readiness to leave Colchester to join the service
companies of the regiment in Malta on receipt of a
route from the Horse Guards. Capt. Woodall, of the
57th Regiment, is ordered to join the depot at Col-
chester. Captain Bayliff, of the 100th Foot, is
under orders to proceed from the depot to the ser-
vice companies.

The proceedings at the camp at Aldershott during
the past Week have included an inspection of the
Cavalry Brigade and a divisional field-day. The
cavalry inspection was made by Major-Gen. Lord
George Paget, C. 8., Inspector-General of Cavalry,
on Tuesday and Wednesday. The regiments in-
spected were the 3d, Bth, and 15th Hussars, and the
17th Lancers, commanded by Colonels Vyse, Mac-
naghten, Fitz-Wigram, and Lowe respectively. The
men were exercised in all movements peculiar
to the cavalry, and both on the field and in
the riding-schools acquitted themselves to the entire
satisfaction of the Inspector-General. A " divi-
sional field-day" was held on Thursday, when the
troops stationed at the camp, with the exception of
the Royal Engineers and the Royal Engineer and
and Military Trains, formed up on Bricksbury-plain
in line of contiguous columns, and a sham fight,
lasting about three hours, took place. The close of
the most active periods of the military season at
Aldershot willl be'marked during the,next few days
by various exchanges of station and removals affect-
ing the troops at the camp. The Major-General
commanding the Cavalry Brigade is ordered to
hold the Bth Hussars in readiness to proceed as fol-
lows :—Head-quarters and two troops to Birming-
ham, three troops to Coventry, and three troops to
Weedon. The officer commanding the Royal Artil-
lery is ordered to hold the undermentioned batteries
of Royal Artillery, and the head-quarters B brigade
Royal Horse Artillery in readiness to move a fol-
lows :—Head-quarters B brigade Royal Horse
Artillery to Woolwich ; B battery B brigade Royal
Horse Artillery to Brighton ; D battery B brigade
Royal Horse Artillery to Dorchester ; E and G
batteries 9th brigade Royal Artillery to Hilsea. B
and D batteries B brigade will be relieved by A
and B batteries C brigade Royal Horse Artillery
from Woolwich.

The screw steam frigate, Galatea, 26, was placed
on Saturday alongside the sheer-hulk in Hamoaze
to receive her masts in order that she may be pre-
pared for commission.

The iron paddlewheel steamvessel Antelope, 3,
Commander Bruce, left Plymouth on Friday for
the West Coast of Africa.

The screw steam gunvessel Dapper, tendered to
the Britannia, arrived at Plymouth on Friday, and
having shipped stores returned on Saturday to
Dartmouth.

The iron screw steam sloop Agincourt, having
received some slight necessary repairs, was removed
on Friday from the basin in Keyhain steam yard,
and placed at moorings in the llamoaze, in the first
division of the Steam Reserve.

The following appointments have been made at
the Admiralty :—Herbert R. Simons, midshipman,
to the Ocean ; John Coogan, surgeon, to the
Aboukir ; and Henry D. Stanistreet, assistant
surgeon, to the Revenge.

We have reason to believe that the Garter vacant
by the death of tholate Marquis of Lansdowne will be con-
ferred upon the Duke of Richmond. Lord Boyne is also
to be advanced to the peerage of Great )3ritain.

The State of the Money Market.

(From the Economist.)
It is not likely that the deputation of the joint-
stock bankers to Mr. Disraeli will have much prac-
tical effect. They hare proposed that the 10 per
cent. clause contained in Mr. Gladstone's letter of
licence shall be cancelled, and another written with-
out that clause. On former occasions we have given
reasons for believing that the insertion of the clause
has, upon the whole, been injurious. The proper
object of a restriction upon the breach of Peel's Act
is to be found in the object of that breach. Owing
to sudden and calamitous events domestic credit
was impaired, the " auxiliary currency" of checks
and similar expedients was less effective than usual,
and more banknotes were needed. What was ne-
cessary was to make sure that the extra issue of
banknotes should not derange the foreign exchanges.
And in previous panics the requirements of a high
rate of interest has been the best means of so pro-
viding. But on this occasion we think that (six
weeks or two months since) a lower rate of interest
would have better regulated the foreign exchanges.
We had then much foreign money in London, And
the higher interest we offered for its retention the
more its owners were anxious to take it away. The
operation of the 10 per cent. clause was, therefore,
at that time injurious. Though, according to the
better opinion, the whole discretion is still in the
Bank, yet the position is anomalous and dubious.
The semi-suspension of an Act is puzzling ; the
steady contemplation of permitted illegality is
peculiar. To what extent the policy of the Bank
was determined by the " 10 per cent." cannot
be known without examining the past thoughts
and past feelings of each director. But, doubt-
less, it was so determined to some extent, and,
as we hold, determined wrong. Now, how-
ever, the foreign discredit has been created the
foreign money is gone, and the Bank directors are
left to struggle with the results. A withdrawal of
the 10 per cent. clause might, in theory, be more
desirable, as vesting the sole responsibility more ex-
clusively in a single hand ; but hardly any director
would now think or vote very differently whether
the restriction be retained or removed.

Another suggestion has been made, that the Bank
of England should accept the offer of the French
Government, and take a loan from the Bank of
France. But no step could be more fatal. The
evil from which we are suffering is a deficiency of
foreign credit, and such a loan would at once
diminish our foreign credit. It would be a frank
confession to Europe that we wanted French aid.
If anything could cause a new " run upon England"
it would be a loan so unadvised.

We fear that 10 per cent. must now be endured
for some time longer. We retain our belief that
the Bank of England missed its opportunity;
we believe that by a timely reduction of its rate it
might have confirmed foreign confidence and allayed
foreign discredit. But the period for such a step is
over. As we have said, the foreign money is gone,
our funds for the discount of bills are diminished,
the means of Lombard-street are impaired, while its
demand is still ample, and while this fact remains
we cannot expect a reduction in the value of money.
There are two ways in which a high rate of inte-
rest tends to bring ease in Lombard-street. First,
it attracts foreign capital here. But on the present
occasion we cannot, after late events, have much
confidence in its magnetism. We doubt its draw-
ing much, and we fear it will deter some. Secondly,
a high rate operates in a more natural way, by
diminishing transactions, lowering imports, increas-
ing exports, and so righting the balance of trade
and bringing bullion hither. And this process is
now going forward. It is true that the figures of
the Board of Trade do not yet show such to be the
case, but a reference to previous similar periods will
show that there is another disturbing agency. At
a time of crisis we call in our debts from foreign
countries, and the first consequence is an increase of
imports. We explained this in 1858, just after and
in reference to the crisis of 1857, in terms which we
quote, because their principle is as true now as it
was then :

" When we arrive at a period of crisis, the coun-
try is more influenced by its past transactions than
those of the moment or those which follow. When
a crisis occurs, it is generally preceded by what is
termed over-trading; and this usually, if not
always, takes the form of very extended exports, ac-
companied by a relative increase of imports of raw
ivaGcri &l auil usher produue. Ad a rule, however,
this country gives somewhat lengthened credit upon
its exports, while its imports are drawn for at the
moment of shipment from abroad, and are paid for
in cash shortly after their arrival. England gives
credit to the whole world, and takes little or none.
Then it must be borne in mind that an adverse ex-
change is caused by a balance of payments falling
due at any one period, and not by the exports and
imports of the moment. We may be exporting as
largely, or more so, than we are importing ; but if,
in the one case, we are giving a long credit, and in
the other case we are paying ready money, the
balance of payments may be against us, while the
balance of transactions is in our favour. That such
was the case at the commencement of the late crisis,
and that such is usually the case at similar periods,
there can be no doubt. We had extended our credits
beyond our means. Our capital was absorbed to an
inconvenient extent by foreign shipments. What, un-
der those circumsances, was the natural remedy ?
Not that we should resort to means to increase our
exports, but that we should rather circumscribe our
transactions, reduce our foreign credits, and wait
the arrival of remittances as they fall due for ship-

ments already made. At such times the commerce
of the country is placed in a condition of partial
liquidation. But it will be observed that that liqui-
dation can be, and practically is, effected as much
by commodities as by gold. The same motives which
induce to large shipments of Gold to England at
such times lead also to:shipments of commodities,
both being equally applicable to the liquidation of
debts from foreign countries."
In time we must expect our imports to fall off
under the influence of diminished transactions. But
such is not the first effect of a crisis. The goods
sent in payment of old debts confuse the accounts,
and make us look as if we were transacting an aug-
mented business.
How long the 10 per cent. rate will continue it is
not easy to say. The exchanges are better a 3 we
write, and there is more ease than for a day or two
past. Still we must not be too sanguine of an im-
mediate or signal change.

THE GREENWICH UNION.—In this workhouse,
containing upwards of 900 inmates, there has not been a
death from any cause since the 2d inst., although the ave-
rage deaths are five weekly.

A GOOD SUGGESTION.—The tranquillity of India
is considered assured by the presence in the country of not
fewer than 80,000 British troops, required less to keep the
peoples in subjection than to restrain native auxiliaries
from possible mutiny. Suppose Lord Oranborne were to
arm our own men there with breech-loading rifles? The
new weapon is so efficient that then our Indian army might
safely be reduced by an eighth at least; and au eighth is
10,000 men.—Pall-mall Gazette.

FATAL COLLISION ON THE LONDON AND BRIGHTON
RAILWAY.—On Saturday night, at about half-past
nine o'clock, a collision occurred between two trains on
the Mid-Sussex portion of the London and Brighton lino,
at a place known as the Itchingfield Junction, about three
miles on the Shoreham side of Horsham. One man lost his
life, and several passengers were severely injured. The
7.40 train from London-bridge to Littlehampton and Ports-
mouth was 15 or 20 minutes behind at starting, and was
late at all the stations down the line. At Itchingfield
Junction it ran into the 7.15 train from Brighton and
Shoreham. The fireman of this train was killed, but the
drivers of both trains escaped comparatively unhurt. The
guard of the Brighton train also escaped, though his brake
was shivered to atoms. The up train happened to be an
unusually light one, whilst the down train was more than
ordinarily heavy. Had the up train contained more
passengers, or had it run into the other near its centre,
the casualties must have been alarming. As it was, the
majority of those who suffered were passengers by the
down train, several of whom have sustained fractures of
the legs or other limbs ; but no other fatal cases have
occurred. By dint of great exertions the line was cleared
and the injured passengers attended to. Some who were
able to walk made their way to Horsham. Others who
were more hurt wore convoyed there by train ; and others
who were en route to the Channel Islands were taken by
train to Littlehampton and placed on board the Honfleur,
which was to have been despatched at l 2 o'clock on Satur-
day night, but which, owing to the accident, delayed her
sailing until noon yesterday, The accident is attributed to
a disregard of signals.