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It was supposed last week that Marshal Serrano was on

his way- to the North with a large army, and that the Carlists were in straits, an idea confirmed by a letter from the Bishop of Urgel abandoning the Carlist cause, but the Marshal has not gone. He has remaiued in Madrid raising money, while General Loma has marched from St. Sebastian upon Oyarzun, and has been defeated and forced to retire. The reports of a coming Alfonsist move- ment have been rife all the week, but Serrano seems not to be in the plot, and it can hardly be announced until the Carlista have been beaten in some battle. There is talk of a " transaction " to be effected by bribing Carlist Generals, but there has been talk of that for months, and the end seems to be as far off as ever.

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