It appears to be understood that Germany, Austria, England, France,
and Italy will recognise the Regency of Marshal Serrano. Great joy has been expressed in Madrid at the news, which is considered a proof that Don Carlos has nothing more to expect from abroad. There has been no reason for months why the Regent should not be recognised, but it has still to be proved that recognition will greatly benefit his cattee. It will probably gain more from the victory which General Moriones is stated to have gained at Oteiza over eighteen battalions of Carnets, aril from the suspension of quarrels within the Cabinet itself. The appointment of General Moriones to an important command means, of course, the temporary triumph of the Republicans, as does also S. Castelar's semi-official mission to Paris. The Treasury seems to be in extreme straits for money, and the troops are irritated by the incessant muddles in the Commissariat depart- ment,—muddles due, we are told, though we can scarcely believe it, to actual want of cash. Want of audacity and brain at head- quarters would be much more like the truth.
