29 SEPTEMBER 1866, Page 1

The revolt in Palermo has been suppressed. It is attributed

by the Clericals to the Reds, by the Liberals to the Clericals, and by the Italian correspondent of the Times to'Austrian intrigue, which, however, must have worked through local agents. Considerable numbers of Austrian officers are said to be in the island, and the 5,000 men who took possession of Palermo were strongly organized and resisted the Royal troops like soldiers. There is no doubt con- siderable discontent in Sicily, where the monks are strong, where property is in few "hands, and where the Government has been. guilty of some neglect. Police order is very bad, and there is considerable distress, for want at once of land and occupation.