The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-06-22


pealipg to the people. But az government loans
are being conducted now this will be all
changed. The masses Of the people becomiog
participants n the loan, their voices will natu-
rally govern the policy of their respective
countries.
This system has prevailed In this country,
though not made quite 60 manifest In the recent
bids for Treasury notes at Washington although
the people nre not Individually represented
among the lenders, we yet find in the forty &c
cepted bidders no less than eight savings banks
Thus the masses Of our people are to great ex-
tent lenders to government, because every one
who has money in these institutions loans it for
public purposes through the trustees. la this
way our bumblest citizen, the street sweeper the
bod carrier even the poor sewing girl, become
interested IN the government loan. This Ger
taiply is very marked innovation on the old
system, and we cannot help thinking that it is
very wise and judicious one.
II is o little curious, too, to observe that the
influence Of the millionaire bankers of Europe
who we're built up by the great loans created BY
the wars Of the first Napoleon, ia being demol
isbed by the innovations Of his successor.
Another Victory for the Aliies-The AustIians
Retiring 10 the Aaas.
The Persia, which arrived at this port last
night, brings news of another victory for the
Allies, at the village of Melegnano, on the road
to Loci The affair at Magenta appears to have
been greater disaster 70 the Ausrians than the
first meager accounts led us to suppose. After
the defeat Of the Austrians at that point by Gen.
Mcmahon they tell back on Abbiate Grasso and
thence retired to Beigiojoso, leaving force OF
10000 men unsupported at the village o.
Melegnapo. Louis Napoleon despatched Bara
quay d'Hilliers with division to that point,
who defeated the enemy, killing 1,5OO add
making 1900 prisoners A battalion OF Croa.s
and HuDearians attempted to surprise the vii.
lage, but were repulsed by the French.
The Austrians, meantime, abandoned Pavia
leaving Piacenza uncovered, and crossing the
AIDA, took up their position at Cavatigozz, a
village close to Cremona. The Allies occupied
Milan, where the King of Sardinia and the
French Emperor had been received with great
enthusiasm.
The Austrian corps darmfe which fought at
Magenta was commanded by General Gyulai in
person, and comprised the divisions of Clam Gal
las Zobel, Schwartzenburg and Lchtenstein.
The official bulletin in the Noniteur sums up the
account OF the actions at Turbigo, Baffalora and
Magenta, in these Words
Thus, five days sitter their departure from Aessandra
the Aiiied army hao given three comoaIs waned battle
"A
OF Milan Since the combat of Montebeho Austrian
army has lost go men in killed and wounded TO- 900
prisoners, and u guns.
There can be little doubt that the Austrians
win at once retire upon their fortified quadran-
gle near the Adige, though it is possible that an
other engagement may take place before they
reach that point as the latest accounts state that
both armies were preparing for another combat
on the AIDA.
While these rapid events were occurring in the
south, the forces of Garibaldi were attaining
fresh successes in northern Lombardy. General
Urban's army had been driven from Varese, and
.;Npersed. while $50 of the Aus
trian troops had fled from Laveno acroso I4..,-
Naggiore, and took shelter on board vessels in
The neutral waters of Switzerland, from whence
they had been sent into the interior to Belinzona
by the Swiss authorities. 1t must be remarked,
however, that Vienna despatch says that Urban
had made good his retreat.
A remarkable incident occurred at the battle
Of Magenta, which goes far to prove that the in
fuence of the Hungarian leaders in producing
dissatisfaction in the Austrian ranks has work
ed to some purpose, and that Louis Napoleon did
not miscalculate when he supposed that the TIA
liam cause would have the sympathies Of the
Austrian troops belonging to the Hungarian and
Italian Dationalities. Ofthe 1000 prisoners ia
ken in the battle large number were Hunga-
mans and Italians, many of whom were captured
in whole regiments who had laid down their
arms without any apparent necessity; 80 that,
says the London Times, it may perhaps be doubt
ed whether the bulk Of the Austrian soldiers
now in the hands Of the allies should be more
correctly characterized as prisoners Or de-
serters.
The news by the Persia would indicate that
the theatre of war is being rapidly removed to
the stronghold Of the Austrians in the direction
of Verona, where they will doubtless make
great stand, and where the conflict will assured
ly be bloody and terrible.
Neutral Rights and Goods Contrahend OF
War.
The time is ripe, in the midst of war in Eu
rope, for some distinct understanding upon the
question of the rights Of neutrals, the right OF
search, and of what goods are contraband of war
and what are not. 1t has been stated that the
British Minister at Washington, Lord Lyons, has
had repeated interviews with Mr.. Cass on the
subject, and the Secretary Of State is at this time
engaged in preparing letter to be sent to Mr.
Dallas and Our other Ministers at European
Courts, which will define the American doctrine
upon all those points 1t is pretty evident that
England is still in doub. as to what course she