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Iran 1' I.—The newspapers afford little French news this week. The most striking fact is the continued prostration of trade and industry. The Times correspondent says-

" We have only to examine the official returns published by the Govern- ment last week of the receipts of the customs and excise from the 1st of January to the 1st of May to perceive that the commercial condition of the country continues very unsatisfactory. These returns exhibit a deficiency in that portion of the public revenue of 4,800,000 francs for the first four months of the present year as compared with the corresponding period of the year 1857. This is a demonstration, in figures, of a commercial crisis. The financial condition is not better. The highest authorities in the commercial world attribute the stagnation to an excess of speculation both in financial and commercial enterprises. They allege that France, having purchased too much foreign produce and overstocked the market with such manufactures, must now wait quietly until the consumption shall have reduced the stock on hand to its proper level. These authorities disapprove the measures adopted by the Government for giving an artificial value to public securities at the Bourse, such as the circular of the Minister of the Interior to the Pre- fects recommending the administrators of charitable establishments through- out France to sell the landed property of those institutions, valued at 500,000,000 francs, and vest the produce in Government securities. The same men are further of opinion that an improvement in trade will produce a corresponding improvement in financial enterprises, while the inter- ference of the Government must be attended with consequences more dis- astrous than useful."

A funeral service for the repose of the souls of the Orleans family, was performed in Paris on Thursday. [It was really intended for the Duchess of Orleans.1 The principal political leaders under the Monarchy of July were present.

f 11! gr 11.—The Montenegrin question does not look well. The Constantinople journals insist upon the Turkish right of suzerainty over Montenegro. The Russian journals say the Turks must be taught that they have no rights whatever in Montenegro, and that "any attack on that independent country is a violation of international law. Even if the Paris Conference should not take the matter in hand, Austria will never be able to deprive Montenegro of the independence which it has enjoyed from time immemorial." The presence of a French squadron in the Adriatic caused "great astonishment" in Stamboul. It is stated that the French line of battle ships had left the coast, and that Lord Lyons had been recalled from the Adriatic, but that an English gunboat and two Austrian frigates have anchored in the roadstead of Ragusa.

The Frenchman Delarue has, by order of Prince Daniel, sent to the hfoniteur an elaborate account of the conflicts near Grabovo ; from which it is quite clear that when attacked, the Turks were under the impression that an armistice had been arranged. The Turks were inferior in num- ber to their enemy, and they were assailed suddenly when marching as they thought, under a kind of safe conduct from Prince Daniel. The despatch in the ifoniteur, however, is chiefly remarkable for its closing sentence. It is as follows-

" I had placed my hopes in the Government of the Emperor who deigns to give me the greatest marks of his favour ; after what he has done for me and for my country it is my duty to conform to his desires and to follow his counsels."

It is stated that the Porte has ordered large reinforcements—one ac- count says 20,000 men—to the Montenegrin frontier.

&h r.—According to a telegraphic despatch from Naples, published by Le Nord, "Austria having proposed to the King of Naples the medi- ation or arbitration of a second-rate Power in the affair of the Cagliari, King Ferdinand declined the proposal of a mediation, but accepted that of arbitration on the condition that such arbitration should be referred to a great Power." M. Iiisseleff, the Russian Minister at Rome, has gone to Naples, it is supposed, on an appeal for help from the King.

r II55/11.—A letter from Coblentz, states that, on the 28th May, the Prince Consort, " accompanied by his illustrious relative the Princess of Prussia, who had gone as far as Remagen to meet him, arrived here on board the steamer Hermann. The Prince only remained long enough to receive the city authorities, and half an honr afterwards continued his journey, being accompanied by the Princess of Prussia as far as Stol- zenfels."

V MI S.—Herat it appears has been abandoned by the English. The &sidling learns "from unquestionable authority that the British Mission at Herat has been recalled by the Honourable Mr. Murray, and were to have left Teheran by the 1st of March, returning to India by Bushire. They may be expected in Bombay by July. It appears the home go- vernment have decided upon giving up Herat to Persia, and waiving the fulfilment of the terms of the treaty." This was the work of the late Government. The mission were at Teheran on the 3d April. Our rela- tions with Persia are declared to be very unsatisfactory.

1 Shia.—The Bombay mail, with advices to the 9th May, reached London on Thursday evening. The intelligence it brings is much fuller than usual.

The united forces of Sir Colin Campbell and Brigadier Walpole en- tered Shahjehanpore on the 30th April. Sir Colin Campbell with the siege-train had proceeded up the Doab from Cawnpore to Futteyghur. General Walpole had moved with a complete, but small, army from Lucknow through Oude to effect his junction with the Commander-in- chief. On his way, contrary, it is said, to orders, he attacked the fort of Roer or Rhodamow. This operation appears to have been mis- managed. According to the accounts General Walpole, without re- connoitring the position of the enemy, or using his heavy guns, sent the infantry against what proved to be the strongest part of the works. The troops, shot down by an unseen enemy, hid reached the wall and were clambering up, when the retreat was sounded. The soldiers reluc- tantly and angrily turned back, and it was in rallying them for the retreat that Brigadier Hope was shot down. Three other able officers were killed, Brumley and Douglas of the 42d, and Harrington of the Ar- tillery. The total loss was 110 killed and wounded. The rebels fled from the fort in the night, and Walpole blew it up. Moving onwards the enemy were encountered in the open field, and speedily put to flight with great loss by the cavalry and horse artillery. Walpole was now in communication with Sir Colin Campbell. The siege-train was sent across, and the two divisions forming a junction, marched to Shahjehan- pore. In the meantime Brigadier Jones coming from Rorkee had pene- trated as far as Mooradabad on the 25th April, driving the enemy before him. Brigadier Penny's column, which had been in waiting between Futteyghur and Meerut, crossed into Rohilcund on the 28th, also de- feating a body of rebels. There were, therefore, three columns moving upon Bareilly, where Nana Sahib held sway. When Walpole marched from Lucknow by the left bank of the Goomtee, Sir Hope Grant went up the right towards Beetapore. At his approach the rebels- under the Begum and the Moulvie, separated, one flying into Rohilcund, the other doubling back towards the East. Sir Hope Grant, therefore, returned to Lucknow after attempting another fruitless pursuit of the Begum. At Nawabgunge he found the last of the Ghoorka force under march for the mountains. A British force was to be stationed there to control Fyzabad.

The force under Sir Edward Lugard had been led in pursuit of Koer Singh from Azimghur to the Ganges. When Koer Singh fled, Brigadier Douglas was sent in pursuit, and Colonel Cumberlege was despatched to the left to cut him off. Koer Singh was overtaken and defeated near Bulleah, but he managed to evade the cavalry and crossed the Ganges to his home at Jugdespore. A small force under Captain Le Grand sallied out from Arrah to meet him, but Le Grand involved his force in a deep jungle occupied by the enemy. Instead of fighting, he sounded a retreat, a panic seized the force, and they ran. No fewer than 130 were killed out of some 250, and two guns were abandoned. Le Grand himself was shot. Sir Edward Lugard's division was to cross the Ganges and lay siege to Koer Singh. That misguided but gallant chief, it is said, has died of his wounds, and Ummer Singh, his brother, commanded at Jug- despore.

In Bundelcund, Sir Hugh Rose had moved up to Koonch, where he defeated the enemy. General Whitlock had beaten the Nawab of Banda and taken his town. He was to form a junction with Sir Hugh Rose before Calpee was attacked. In order to cut off the rebels from the Doab Brigadier Pennefather had moved down the Doab and taken post near Calpee on the left bank of the Jumna. The communications of Rose and Whitlock were secured by the despatch of a brigade from Kotah. The most melancholy news brought by the mail is the death of Sir William Peel at Cawnpore on the 27th April. Ho was one of the most distinguished officers in the navy, and his name will be long remembered for his share in the Russian and Indian wars. He was the third son of the late Sir Robert Peel.

altaffs.—The Vanderbilt arrived at Southampton on Wed- „ay, with letters from New York to the 22d May. The President had forwarded to Congress the information asked for respecting the " outrages " committed by British cruisers upon Ameri- can vessels. These outrages are of two kinds. American vessels are " watched and interfered with " at Havana and generally in Cuban waters. The interference consists in bringing vessels to by tiring a shot or shots across their bows, boarding them, and looking at their papers. The offending British cruisers are gun-boats which have been stationed round Cuba to intercept slavers approaching the island from Africa, and of course to stop any illicit traffic in slaves that may be going on be- tween Cuba and the United States. No fewer than twenty-one cases are mentioned by the newspapers ; but Mr. Sec, etary Cass appears only to refer to eleven. But the outrages are not confined to the sea. It is complained that British marines landed at Segue in Grande in Cuba to search for slaves. This act of aggression had roused the indignation of the Captain-General, and he had ordered the Spanish officer who did not resist the " Britishers" to be brought to Havana in irons. So reports the American Consul. The American Government have ordered the Wabash, Savanah, and Dolphin to the Gulf of Mexico. There are al- ready three war-ships there. These ships are to give " prompt protec- tion to all American vessels that may need it." In the papers sent to Congress are two letters from Mr. Cass to Mr. Dallas, dated the 13th and 18th May. In his first letter Mr. Cass says-

" I am persuaded that if the occurrences took place, as are thus stated, the • conduct of the British officers will be disavowed and condemned. I beg you would communicate to Lord Malmesbury the earnest desire of the President . that this practice, which seems to become more prevalent, of detaining and searching American vessels, should be discontinued, and that the most per- emptory orders for that purpose should be given and enforced. Such a measure is called for by important considerations, which will readily occur to you. Whilst this Government is determined to use all proper exertions for the suppression of the slave-trade, it is not less desirous that the just immunities of vessels of the United States upon the ocean should be preserved." In the letter of May 18 he says-

" When all the facts have been ascertained, proper representa- tions will be made without delay to the Government of her Catholic Majesty against this search of American vessels by the naval forces of another Power, within the territorial jurisdiction of Spain. The Government of the United States is satisfied that the Government of that country will adopt the most efficient measures to protect their vessels resorting to Spanish ports from lawless violence. . Such protection they are entitled to, and if it is not secured elsewhere it must be found in the power of our own country." Secretary Cass says he is not informed whether any injury was sustained in consequence of the proceed- ings against those vessels. If there were, it is expected it will be made good by the Spanish Government, or by means of its interposition with the Government of Great Britain. These flagrant violations of the right of the United States, he adds, " have excited deep feeling through the country, and have attracted the attention of both houses of Congress. Their continuance cannot fail to produce the most serious effect upon the relations of the two countries. The President confidently believes that the British_ naval officers, in the adoption of these high-handed measures, have acted without the authority, and have mistaken the views of their Governinent. But it is not less due to the United States that their conduct shalt be disavowed, and peremptory orders issued to pre- vent the recurrence of similar proceedings. You will communicate to Earl Malmesbury the reasonable expectation of the President that this subject shall receive the immediate attention of her Britannic Majesty's Govern- ment, and that the officers who have been guilty of these outrages shall be held properly responsible for their conduct, and that where pecuniary losses have been sustained the interested parties shall receive just compensation. You will invite the particular attention of Lord Malmesbury to the occur- rence. at Segue La Grande, and to the just expectation of the United States that the measure of redress adopted by the British Government upon this case will be such as to mark with its displeasure the conduct of the officer whose proceedings have given serious cause of offence to a friendly Power, and to prevent similar interference hereafter."

The American journals express great indignation at the proceedings of our officers. In the Senate, Mr. Seward had brought forward a resolu- tion instructing the Committee on Foreign Relations to inquire whether " any legislation is necessary to enable the President of the United States to protect American vessels against British aggression in the Gulf of Mexico or elsewhere, and to report by bill or otherwise." The resolu- tion, in consequence of an objection by Mr. Mason, was temporarily postponed.

t natal Inurit 4.—The Governments of Costa Rica and Nicaragua have conceded to a Paris firm, Millaud and Co., the right to form a com- pany " on the broadest basis and without distinction of nations," but with a direction exclusively French, for the purpose of cutting an inter- oceanic canal across the isthmus by the Lake of Nicaragua. The follow- ing are among the stipulations of this convention.

" Art. 23. The contractors engage reciprocally to immediately take the necessary steps with the Governments of France, Great Britain, and the United States, that the neutrality of the canal shall be guaranteed by those three Powers, on the basis established in the Clayton-Bulwer treaty. " Art. 24. As long as this guarantee shall not have been officially de- clared by the publication of the treaty to be concluded for that purpose, the entrance to the canal shall be rigorously closed to all ships of war, and the States on its banks may adopt, in conceit with the company, such measures as they may consider necessary to cause such interdiction to be respected. • "Art. 25. As soon as the neutrality of the canal shall be solemnly guaranteed by an act emanating from one of the Governments of France, Great Britain, or the United States, the entrance may be permitted to ships of war by an unanimous declaration of these three Powers, provided the Governments of Nicaragua and Costa Rica put no opposition to it, and saving a previous regulation with the company enjoying the concession. " Art. 26. As an exceptional measure, and in order to protect the inte- rests and responsibility of a company whose direction is entirely French, the French Government will have a right to keep two ships of war stationed in the waters of the canal or in the Lake of Nicaragua for the entire dura- tion of the works. " Art. 27. Every civil difference relative to the execution of this conven- lion shall be sovereignly judged by a permanent commission composed of two arbitrators chosen by the company, of a magistrate appointed by each of the two States on the banks of the canal, and of the oldest French Consu- lar Agent accredited in these two States. " Art. 28. Every political difference relative to the execution of this con- vention shall be laid before a tribunal of arbitration composed of two repre- sentatives of the company and of a representative of each of the five States

interested as guarantees—France, Great Britain, the United States, Nica- ragua, and Coate Rica, who shall pronounce judgment according to a rela- tive majority."

Appended to this Convention is a declaration signed by the Presidents of Costa Rica and Nicaragua. Pointing out that both countries are liable to invasions of filibusters secretly patronized by the United States ; that the American Minister in Central America boasts that they will get the country by treaty or by force, the two Presidents place the Isthmus under the guarantee of England, France, and Sardinia, and supplicate those powers to protect them, and secure neutrality for this highway of commerce.