2 MAY 1874, Page 1

Marshal Serrano, after a tedious delay, has apparently decided to

attack the Carlist communications. According to the latest intelligence, Marshal Concha on 29th April carried the heights of Las Munecas, and the Carlists retired along the whole line, 'Serrano occupying all the positions he desired. The attack was resumed in the morning, and is again reported from Madrid as -successful. No conclusion has, however, yet been reached. It is, perhaps, more important for the welfare of Spain that Castelar has written a letter finally abandoning the Federal principle, which, he says, ends in Cantonal anarchy, and has declared for a Republic, Unionist and Conservative.