7 MARCH 1874, Page 2

The Carlists in Spain have gained a somewhat serious victory..

General Moriones, with 20,000 men, has made a desperate attempt to break the Carlist lines round Bilbao, and announces (February 25) that he has been defeated. He is said to have lost 3,000 men, and he himself asks to be superseded by a General,. with heavy reinforcements. Marshal Serrano on receipt of this intelligence immediately declared himself head of the Executive for , two years, entrusted the Presidency of the Council to General Zabala, and himself set off for Santander with 2,000men, leaving- orders to strip the provinces if necessary, but to send him suffi- cient troops. He is already at Santander, and as his name will inspirit the soldiery, ought to be able to relieve Bilbao, which is not yet taken. The people of the centre and south, who detest Don Carlos, are in some excitement, and are furnishing volun- teers, but nothing remains now.but a great battle, which Don Carlos may win. If he does, he will probably proclaim himself King of Spain, and try to induce his mountaineers to descend into the plain ; but if he is defeated he loses all, as he has not the money to equip a second army. No explanation is offered of Moriones' defeat, but it was probably followed by symptoms of mutiny, as he asked for his successor.