25 JULY 1835, Page 2

A smart action took place on the 16th instant, at

Estella, between the Carlists and the Queen of Spain's troops; which ended in the defeat of the former. Three Carlist battalions are said to have deserted to the Queen.

There are rumours that MORENO has been killed by his own troops; and that SAARSEFIELD has succeeded VALDEZ in the command of the Royal army, VALDEZ having been exiled to Valen t ia in disgrace.