28 NOVEMBER 1874, Page 3

It is stated that Serrano's Government had a military reason

for recalling General Loma and his army from the pursuit of the Carlists. They feared that Don Carlos might destroy or break through the force upon the Ebro, which had been reduced by Loma's expedition to 25,000 men. It is probable that this is correct, Serrano's Government being influenced at once by fear, and by a desire not to interrupt a negotiation still going on with the governing juntas of Navarre, Guipuzcoa, and Biscay. These pro- vinces are almost exhausted by the war, and would abandon it if they could only be guaranteed possession of their fueros. The guarantee they demand, a local army, cannot of course be granted, but if any compromise can be discovered, the Carlist army will, it is said, retire quietly to its homes. Pending that discovery, the North is being exhausted by bombardments, requisitions, and excessive taxation.