26 FEBRUARY 1876, Page 2

Estella has been occupied by the Alfonsists, and Don Carlos

is trying, it is believed, to enter France. He has still, it is reported, 24,000 men, and may try another battle ; but that is not probable, as his Generals have fled, and his followers are disheartened. It is more probable that he will agree to a convenio, and retire quietly. The most careful observers believe the war is over, but it is noted with apprehension that the General who has finished it is Martinez Campos, a devoted partisan of Queen Isabella, and that the Queen is to return at once to Madrid in state. It is believed that she will be a centre of intrigue, and it is even possible that an Isabellino movement may occur, as the Southern peasantry are attached to the Queen, and Alfonso very weary of his royalty. However that may be, it may be taken as certain that the extinction of Carlism will at once induce the whole Clerical party to rally round the Court, and the Republicans to recommence agitation. They have scarcely any representatives in the Cortes, except Castelar, but they are strong in the cities, and French example is always powerfully felt in Spain.