The New York herald., 1870-08-23

The Situation In Europc-Pence Close at
Hand.
Our view Of the scene and the condition Of
the war, as expressed yesterday morning, is
fully sustained. The main body of the French
Army of the Mosele under General Bazaine is
thrown back upon Metz, and its communica-
The camp at Chalons is reported to be broken
up and the Gardes Mobiles recently assembled
there are said to be in full retreat on Paris
without sufficient arms or provisions. Indeed,
one despatch briefly announces battle in
the immediate vicinity of Chalons and another
great victory by the Prussian Crown Prince.
OF this, however, we have no distinct con-
firmation. Meanwhile there can be no doubt
that the Prince has communicated with the
German armies of the north and centre, now
jointly under the command of King William,
and that he feels strong enough to continue his
advance on Paris. His vanguard already
hovers in sight of Sezanne, indicating march
direct upon the French capital by the line of
La Ferte Gaucher, Coulommiers and Couilly,
since the route by the valley of the Aube
would be further to the south, and on the arc
instead of the line Of the semi-circle, and,
consequently, longer, more tedious and far
more perilous than the other. We are in
clined to think that if any of his troops have
been seen in that direction they are mere
scouting parties
1t is impossible to reconcile with this move
ment the declaration that MacMahons head
quarters are at ST. Dizier, which is much to
the eastward of vitry-le- Francois, where the
Germans under the Crown Prince were seen
on Saturday, unless the French Marshal has
also been surrounded and cut off, In fine,
this statement looks like an error. Paris is
making strenuous exertion to complete her
preparations for defence. Major General
Trochu is acting with equal irmness and
lberality. All classes and parties are
appealed to for the common defence of the
country; the radical journals lately suspended
are allowed to reappear, and the Orleans
princes, in spite ofthe Emperor's recent REFUSAL
are permitted to come back to France. Napo-
leon seems to be utterly ignored and is
even stated to be in flight from France, after
having been treated with indignity by the
troops at Chalons. The Empress Eugene has
appealed to the mediation of Queen Victoria
of England, who is said to have written to
King William. Meanwhile, French iron-clads
have appeared off Dantzig, occasioning much
alarm. On the southeast, the city of Stras-
bourg is reported in flames and on the eve OF
capitulation.
Like bright band of light in midnight
sky the assured certainty of speedy armis-
tice and peace is at this juncture seen across
the darkened horizon of France. The Supreme
Pontiff has uttered his appeal, and King Will
liam has magnanimously spoken. Russia,
Austria, Italy (where the Prince Napoleon is
diligently at work) and England are quietly but
strenuously striving for this great purpose. We
feel certain that the result will be heard
within two or three days. ChristendOm is
shocked and horrified at the slaughter. Prus-
sia herself appeals to the great Powers ''to
save France from anarchy" and all good
influences aid the petition. At the same time
q very striking symptom is revealed in our
markets here. Gold struggles and declines
because our bonds go up abroad as the cause
of peace advances; and already men ask
themselves is there any good reason why gold
should sell In Broad street at premium
higher than what should barely pay the differ
ence Of exchange between Europe and this
country9 Exchange on the Old World
is now at about 1Ol per cent. Our
five-twenty bonds are selling at pre-
MUM Of from 10 to IA per cent here,
and the discount for the same in London Is
from 10 to 124 per cent, and at Frankfort
II to 10. The premium here being from to
per cent higher than the discount on the
same bonds in Europe, why should not gold sell
to-day in Wall and Broad streets for 1O4 to IL,
in view Of the early end of the war2 We see
it taking that direction, and hence infer that
the acute business mind of New York sees that
the inevitable collapse Of the empire has come,
that peace is imminent, and that the best
interests of both Europe and America are
about to emerge from tremendous perils.