3 JANUARY 1874, Page 10

The Virginius, the unhappy subject of dispute between Spain, Cuba,

and the United States, has somewhat conveniently "foundered,"—thereto inclined, no doubt, by artificial inlets of sea-water, —on her way to New York. She was towed by the steam-tug ' Ossipee,' and went down off Cape Fear on Boxing- Day, the survivors of the crew having been conveyed in the ' Ossipee ' to New York, interrogated by the authorities there, and then released. Spain will hardly remonstrate, as a convention settled what was to be done in case the papers of the Virginius ' were found to be illegal, and in that case there was no mention made- of restitution. But according to the rules of that convention, the survivors ought to have been prosecuted for their share in the matter, which appears not to have been done. Perhaps that will be a set-off against the negligence or indisposition of the Spanish Government to punish the authorities of the Santiago Court-martial by whom so many American and British subjects lost their life. To our minds, this punishment should be stead- fastly insisted on, unless the Cubans can show that all their- victims were parties to a hostile expedition against the Govern- ment of the island.