_foreign anb ITALT. — The Pope's " proprio-motu " for the institution

of a Council of State was promulgated on the 15th instant. The Council is to consist of a Cardinal-President, a Prelate Vice-President, and twenty-four Councillors to be appointed by the provinces, with fixed salaries. Each province will name a Councillor, Bologna two, Rome four. The Council will consist of four sections. It does not appear that the Council will have any actual power of a legislative kind; but it will advise the Pontiff on a great variety of reforms, legislative, financial, and administrative.

So far from having evacuated Ferrara, the Austrian troops seem to have resumed more than their former insolence. On the 14th instant, there was a serious disturbance in the city— "A young man having passed before an Austrian sentinel with a cigar in his month, the soldier gave him a blow with his bayonet. A struggle then took place between the young man and the sentinel, and the soldiers of the poet fell on the young man and struck him with their swords. A priest having taken his de- fence, was also ill-treated. The people of the city became irritated, and assem- bled round the guard-house; whereupon the Austrians seized their arms and fired OR them. A cry was raised to sound the tocsin; but Cardinal Ciacchi calmed thelieople, and at the same time caused the young man, who bad been arrested, and who was grievously wounded, to be given up to the Pontifical authorities. Numerous patrols of Austrians, on foot and horseback, again traversed the city."

According to the Turin correspondent of the Commerce, King Charles Albert has frankly adopted a Liberal policy. He has given conclusive proof of this in the appointment of Signor Villamarina. the late Minister of War, to be Governor of Turin. It is alleged that Villamarina only ac- septed the duties on condition that the persons arrested during the recent manifestations should be immediately liberated; that liberty of the press be granted, and reforms introduced into the administration. King Charles Albert had adhered to those conditions. On the other hand, the Noughts& of Marseilles asserts the entire supremacy of the retrograde party.

The Grand Duke and Grand Dutchess of Tuscany accompained by the Hereditary Prince, made their solemn entry into Lucca on the 14th instant. The inhabitants of the little province of Lunigiana, 'which, under the treaty of Vienna, is to be separated from Tuscany and annexed to Mo- dena, are very averse from the change. They had sent a deputation to the Grand Duke with a moving appeal, praying that he would negotiate for their retention under his government. The people appear resolved to op- pose all attempts at possession by the troops of Modena and Parma; and have already destroyed the bridges, and parts of the roads, to prevent the arrival of artillery. The people of Leghorn have energetically petitioned in behalf of Lunigiana. The intelligence from Naples is most unsatisfactory. The King was stall double-dealing, and the discontent of his subjects was becoming greater every day.

Sam—Accounts from Madrid are full of gossip, none of it very creditable to the rulers and leaders of the state. According to appear- ances, Queen Christina has recovered all her influence over her daughter; and to her is ascribed the dismissal of General Dominguez, uncle of Ser- rano, from his post as second in command of the Ilalberdiers; the Queen- Mother's protage, Pinion Rostro, being appointed in his stead. The com- mand of the Guard has been given to Castafios Duque de Baylen, a vete- ran now in his ninetieth year, who has managed to keep well with all parties.

A sensation was created in Madrid on the night of the 19th by the sud- den arrest of Senor Mirall, a bass-singer at the Circus: he was seized at ten o'clock, in his lodging, and sent off to Valencia, in custody of two Civic Guards. The cause of arrest is not knowa; nut it is hinted that the basso had been viewed with too much favour, an I that the Queen's friends feared lest he should become a successor to Serrano. It was reported that Narvaez had written a very friendly letter to Es- partero, offering him the embassy in London; the rough but astute soldier ?Emitter wishing to disarm as many antagonist influences as possible.

A very serious charge had been brought against the late Minister of Finance; a manoeuvre, the nature and application of which is not very clearly explained, though its dishonesty is clear. A long arrear of pay was due to the members of the Household, and, according to the phrase - used in some accounts, Salamanca had " capitalized " those arrears: just before his retirement, he surreptitiously issued bonds representing a Three per Cent Stock, to the amount of 160,000,000 reels; one-third of that amount he used to pay off the above arrears; the other two-thirds remained to be accounted for. The disclosure that some strange manceuvre had taken place, caused inquiry ; and the story was partly confirmed by defensive statement from the Intendant, Don Jose de la Pena y Aguayo, to the effect " that only 50,000,000 of Three per Cent Stock has entered the coffers of the Rayal Household; that Government still owes the re- • mainder; and that 50,000,000 is now lying untouched in the said coffers." It is also said, that the noise made about this " conversion " of the arrears had caused the restitution of bonds to the amount of 40,000,000 of reals.

PoarticiaL.—By accounts received from Lisbon to the 22d instant, it appears that the municipal elections had taken place on the 15th, and that the Cartistas of Costa Cabral's party had then carried them by an immense majority. A protest had been presented to the Government against ille- galities committed to secure the formation of the present list of voters.

There were rumours of a modification in the Ministry. So crippled was the Government for means, that it had contracted a loan to be repaid in a month through the Customhouse, at 15 per cent for the thus.

The Duke of Palmella's arrival, on his way with his family to Madeira, had caused much speculation and watchfulness among the Cartistas.

FaxxcE.—The Paris papers have been barren of domestic news. The principal point is the seizure of the National by the Police on Thursday sennight. In a subsequent number, the National politely requests that it " may be informed of the cause of its seizure, which it professes to be quite ' unable to detect.

The frequent "Reform dinners" in the provinces continue to make an imposing show in the numbers and quality of the guests. At Chartres, on the 24th instant, 500 guests sat down to table; divers Deputies, lawyers, and editors, were present. "Tie King" was not toasted; but the Chairman proposed " The national sovereignty and the constitutional institutions of France." M. Rey, a venerable patriot of ninety-two, proposed "The Italian ' National Guard.' One of the speakers elicited immense applause when he declared that the object of thew Reform meetings was " recummencer os que fon a manqué en Juillet 1830." A Royal ordinance appeared on Friday to admit free of duty into French ' harbours all fish caught on the coast of Algeria, and cured with French or ' Algerian salt. Three or four hundred boats are engaged in the fishery.

SWITZERLAND.—On the 20th instant, the Diet adopted a proclamation- - addressed to the Cantons of the Separate League; pointing out the illegal- ity of that imperium in imperio, and calling on the Cantons to dissolve it; the whole being couched in language of studied mildness. For example the proclamation says- " We cannot and will not yet admit that you, faithful and dear confederates should persist in a position irreconcilable with your Federal duties, after we have frankly exposed to you the veritable intentions of our resolution of the 20th of July, as that should be between confederates and brothers. "Want of confidence, and ferns devoid of foundation, alone could have led yet into the path which you have hitherto followed. "You fear a danger for the charters and liberties which you inherit from your fathers, for your future position in the Federal alliance, for your tatith, your re- ligion. "But we give you the solemn assurance that every intention of militating against these most precious benefits is far removed from us. They ought to re- main inviolate as being your sanctuary. How could the Federal authority recon- cile the design of doing an injustice to the confederates, an injustice to the co- estates, which for the greater part belong to the most ancient members of our alliance?

The document concludes with this mildest of warnings-

" The consequences that a perseverance in such a position may draw upon you and the whole country are incalculable. It depends yet upon you to avoid them. Take resolutions such as your Federal duties and the peace and honour of the Confederation, as well as of your own Cantons, require of you. West we wish is obedience to the law, the maintenance of .the interior security of the Confede- ration, and order. "Faithful and dear confederates, give us fraternally your hands to attain this end, which is prescribed to us by the duties which we have sworn to fulfil. "May God preserve and protect our dear country!"

Fourteen Commissioners were appointed, two to visit each of the Leagued Cantons, and to back the proclamation by their own efforts at persuasion; but, by advices of the 23d instant, it seems to be placed beyond doubt that the mission would prove a total failure. The Council of Lucerne has re- solved that the Commissioners shall be'courteously received, but told that the Government of the Canton can only treat with the Government of the Confederation through the deputies duly appointed to the Diet. Mean- while, the proclamation is interdicted in the Canton; those who aid in its distribution being threatened with imprisonment.

An unpleasant dispute had arisen between the British Chargé d'Affaires and some impertinent subordinates. Mr. Peel was returniug to the city of Berne, on the evening of the 21st instant, from a party at the house of Count Reinhart, First Secretary to the French Embassy: at the gate, he was stopped by a sentinel, who rudely questioned him in German. Mr. Peel desired the man to speak in French; on which the sentinel said that he understood French, but that he must have the answer in German. Mr. Peel then showed his card, with his name and his office stated in German; but the man, still keeping a rough and insolent demeanour, lodged Mr. Peel in the guardhouse; where he was detained for souse hours. Eventu- ally, he was seen by a person who knew him as a visitor at the house of M. Ochsenbein; and Mr. Peel was released. He laid the matter before the authorities; but they endeavoured to put him off with an excuse that such accidents would occur in a country so disturbed as Switzerland. Mr. Peel persisted in demanding an apology; and the slow reluctant steps by which it reached him are amusingly told in a letter written at Berne on the 23d instant- " Mr. Peel vainly waited during the evening of the 21st for the reparation which he had demanded. On the 22d, M. Funck waited on him, in plain clothes, to offer reparation; but as he only presented himself in the name and as the representative of the Canton of Berne, Mr. Peel refused to receive him in that quality. He afterwards told him personally, that he could not accept the ex- cuses which he expected unless they were made by the President or the Vice- President of the Vorort, or at least by two of its members. A little while after, a letter of apology was remitted to him in the name of the Vo.ort; but Mr. Peel declared that it was not sufficient, though he kept it. At length, al. Funck, Vice-President of the Vorort, presented -himself in official costume, and was ad- mitted to Mr. Peel, followed by his Huissier. Mr. Peel received him in uniform, having the Secretary of the Legation at his side. M. Funck told him that he de- plored the accident of which he had to complain, and that he begged of him to accept the excuses of the Vorort."

RtvaarA.—According to letters from Munich, serious consequences are to be feared fivei the influence which Lola Monte; the Countess of Lands- feld, exercises over the King. It is expected that the Chambers now sit- ting will make an energetic demand that the Crown Prince should be made Co-Regent with his father. The immediate scandal arises out of the sus- picion that the Countess has induced the King to recall Prince Oettingen Wallerstein from his post as Ambassador at the French Court.

In the Chamber of Deputies, on the 19th instant, a motion for the total abolition of lotteries was made, and unanimously adopted. The Minister of Justice announced that the new code of laws for Bavaria was so far ad- vanced that it might be presented during the session of 1848, or at latest in that of 1849. It will establish the oral examination of witnesses and publicity of trials in the courts of law.

UNITED STATES AND MEXICO.—Two vessels have arrived since our last &deices; the Henry Clay, with intelligence three days later; the Hi-

bernia, which left Boston on the 16th instant, and reached Liverpool on Thursday. The Henry Clay did not bring the 200,000 sovereigns which had been announced; but the steam-ship brings the smaller sum of 50,0001. in gold. By neither is the intelligence very conclusive or important: a few points are made clearer, and some rumours are given as an appendix to the authentic news.

The papers communicate the terms mutually put forward as the basis of peace between Mexico and the United States. The latter demanded the cession of all the Northern part of Mexico from the 32d to the 42d degree of latitude, with Lower California, including the whole of California and Santa Fe. For this they would pay a sum of money to be agreed upon. The Mexicans rejected these terms, but offered all the territory between the 37th and 42d degree—in fact, half of the United States demand; Mexico retaining Santa Fe and Lower California, as well as Monterey, but ceding the district of San Francisco. The Mexicans object to part with the country between the Rio Bravo and the Nueces; which was the principal cause of the war.

A Mexican letter mentions, that after the battle of Churubusco, "Riley and his Legion of St. Patrick," numbering seventy men, were ordered by court-martial to be hanged, for desertion. The sentence was approved by General Scott; and the whole Legion were hanged in presence of the army and of the enemy.

The rumours to which we have referred are, that the populace of Mexico had risen upon the invading troops, and forced them to evacuate the city; that Puebla had fallen into the hands of the Mexican General Rea; and that, in consequence, it was bombarded from the neighbouring heights by the American garrison, who had retired thither with their ar tillery. Reinforcements on their way to General Scott had encountered serious resistance from Guerillas; and yellow fever had thinned their pinks. General Taylor's force was also much weakened from similar causes.

Meanwhile, the utmost anxiety and activity prevailed at Washington. No despatches from General Scott had yet been received, and it was con- jectured that they had been intercepted by the Guerillas. Cabinet meet- ings had been held three times a week; and the Government is said fully to have resolved upon three things- " I. To prosecute the war with increased vigour, by levying on Mexico for the support of the army, &c., until the Mexicans sue for peace. " 2. To withdraw Mr. Trist, [the Envoy in Mexico, now accused of ineffici- ency]; and the United States to proffer no further terms of peace for the present. " 3. To send on reinforcements as rapidly as possible, to occupy all the towns and passes between Vera Cruz and Mexico, and to reopen the road and commu- nications with General Scott."

An Envoy Extraordinary had arrived at Washington from Yucatan, with full powers to treat with the United States. One of the objects of this mis- sion, it is said, is to procure the assistance of the United States in quelling the Indian insurrection which is desolating that state. British agents are accused of supplying the Indians with fire-arms, and inciting them to mas- sacre the Spaniards and Mexicans.

Mr. Webster has made another speech in Massachusetts against the war, as being unconstitutional and unjust. Congress, he says, was sur- prised into the act of May 1846; and "unless the President of the United States shall make out a ease which shall show to Congress that the war is prosecuted for no purpose of acquisition of dominion—for no purpose not connected directly with the safety of this Union—then they ought not 40 grant any further supplies." Commercial affairs remained without material change. Although the reports of the corn crop represented it as more abundant than ever, the rise of prices in England had imparted activity to the flour-market. Ex- ;lenges were falling; standing at 9 to 9 premium in London. The potato Crop is said to be marked with disease throughout the United States, as well as in Canada.

NEW 7eitawn.—tettera from Wellington describe the renewal of troubles with the Natives. Early in June, a swarm of them made a de- scent on Wanganui in broad daylight, plundering the unfortified houses in the town. A steady fire was kept up from the gun-boat and stockade, and 4,000 shots were interchanged during the day. At length, while en- gaged in disputing over some booty in Mr. Churton's house, the two lead- ers of the raid, chiefs Maketu and Tntua, were shot at the same instant The Maories then retired.

Governor Grey was quickly on the spot, in the Inflexible, and landed a reinforcement of 180 men. Additional parties were sent from Wellington, in the Calliope. With this force, Governor Grey proceeded up the river in pursuit of the marauders. He had brought with him the great chief Te Whero-Whero, Tomato Wake, and John Hobbs. The Native force num- bered about 700; ours being nearly as large. On the 17th June, no im- pression had been made on the enemy; and although 10,000 rounds of cartridges were fired, not more than 30 Maories had been hit. The troops returned to Wanganui every evening, followed each time by the Natives. The impunity of the Maories is ascribed to their great dexterity: no sooner does one see the flash than he throws himself upon the ground, and thus eludes the ball. They are not so successful in hitting, from the habit they have of using over-charges of powder. Altogether, the operations appear to have had an air of weakness.

Governor Grey had consented to release Rauperaha, under certain con- ditions of restraint—.

" Tomate Waka and Te Whero-Whero are to become bail for him. He is to be taken to Auckland with Charley, one of his chiefs. Te Whero-Whero is to de- tain him at Waikato until the country is quiet, and on receiving an order from the Governor will release him. There are various opinions upon this measure: individually, I consider it a very bold stroke of policy in Captain Grey; and if it succeed (as from minute inquiry I believe it will) it will do more to quiet the country than five battles."