The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-05-15

Europe-A New and More Warlike Phase
OF the German Question-A Financial
Panic.
The European continental news by the steam
ship City of Paris wears warlike complexion.
There are no appearances of definite under
standing between Prussia and Austria, but the
active and menacing preparations for war be-
tween Austria and Italy will justify the infer
ences that Napoleon In his dexterous game with
Bismark to detach Prussia from the common
cause of all the German States has failed; that
instead of war between Prussia and Austria,
the latter Power, II necessary, will be backed
by the whole German oonfederacy in the main
tenance of her foothold in venetia, and that the
imbroglio concerning the Danish duchies will
be quietly adjusted.
War between Austria and Italy appeared to
be regarded in Paris and in London as newt
able and imminent The panic which prevailed
in those great financial and political centres
arose from this apprehension. On the Paris
Bomse on the S0th April rentes closed at
65 Is, fall of one and a quarter per cent, and
Italian and Austrian bonds were greatly de-
pressed. Two days before "the Bourse was in
a perfectly awful state. Not even in the worst
days Of the Crimea was there SO bad feeling"
On the LIST of May the contagion had extended
to London, for there, on that day, "a state of
panic greater than any experienced at any time
during the past nine years prevailed In all the
markets." The Paris correspondent of the
London Telegraph, April 20, says:-"Perhaps
may console some of your readers if l tell
them that the greatest person in this realm
Gouis Napoleon) has said, We'll, if there is a
war it will only be very brief one, and will not
interfere with our Exhibition" QS67) How
is the war to be short one? By the neutrali-
ty Of France; for, according to the Paris Consti-
t,tion,e, France will be in no way response
BILE for it. She has remained neutral, and will
reserve to herself complete liberty of action"
This signifies that when Austria and Italy come
into collision France has only to interpose in
order to secure q speedy peace. But Louis
Napoleon may be mistaken in this estimate of
the case.
Meantime Italy is arming and preparing for
venetia by land and sea, and Austria, antici-
pating deadly struggle, would, it was report
ed, have in Venetia one hundred and sixty
thousand effective troops by the first of May.
The short war predicted by Napoleon may en-
brace some such settlement as this:-The sur
render of venetia to Italy, the left bank of the
Rhine to France, the Danish Duchies to Prus-
sia, money compensation to Austria, and the
island of Sardinia to France as an equiva-
lent for Venetia. This would be a nice
arrangem ent, especially for France; but
as it is possible that Prussia, by some other
bargain, may secure those duchies without sac
rifcing the left bank Of the Rhine, Napoleon in
the sequel may discover that he has been over
reached by Bismark Moreover, though the
France of to-day is an empire, as the France Of
tomorrow may be republic, Napoleon is com.
PEELED to the policy of short wars in order 10
avoid the internal dangers of long Ones Hence
bis peace at Villafranca, when the last wal
with Austria began to assume the threatening
aspect of an embodiment of all the German
| States.
! As the European situation is now presented
Italy, relying upon the reserved forces ofFrance
| is resolved upon war with Austria for Vene'
tia. France declares her neutrality; but We
know the prompter behind the scenes. At The
same time, as all apprehensions of a rupture
between Austria and Prussia appear 10 have
died away, and as Austria is vigorously prcpar-
ing for the defence of Venetia, the considcra-
tions which resulted in the treaty of Villa
franca may operate against the armed inter
vention of France. In word, in moving a
little too soon, and in thus giving the alarm 10
Austria, Victor Emanuel, IT may be, has spoiled
the whole European game of Napoleon.