There is a report in circulation to the effect that
the American question may now be regarded as virtually settled, "in a manner satisfactory to all parties concerned." The Bay Islands are to be given up to Hondu- ras ; which claims them as a portion of the state of Honduras, and pledges itself, not to give them over to any other power nor to allow any other power to interfere in their affairs. There is to be a tripartite treaty to secure this arrangement, between England, the United States, and Honduras ; and France, if necessary, will add her signature to the in- strument. Such is the story of the morning.
The latest advices respecting the condition of Spain are contained in these passages from the Moniteur of yesterday and today. " Bayonne, July 24.—According to a letter from Saragossa, dated the 20th, General Falcon had just held a review of sixteen thoufand men. A battalion from Tudela deserted as soon as it arrived before the city, and joined the insurgents, as did also the Douaniers. Fifteen thousand militia- men and peasants are on their march from Quince to join the Arragonese. The frontier of Navarre is tranquil." " Bilbao, July 17.—The Juntas have declared, in the midst of the great- est enthusiasm, the Imperial Prince, son of the Emperor of the French, to be a native citizen of Biscay."
There seems no longer any doubt but that a very large force of French troops will be assembled on the Spanish frontier.
A telegraphic despatch from Trieste states that "the Russians have occupied the Isle of Serpents, of which Turkey claims the possession by virtue of the treaty of peace. The Russians have refused to admit the English Commissioners into Kars ; declaring that they would not sur- render the fortress until after the complete evacuation of Turkey by the Allies."
The General of Division, Count Roguet, A.D.C. of the Emperor, has just left Plombieres for Marseilles, as the bearer of a letter from the Em- peror to Marshal Pelissier. The Emperor desired that his congratula- tions might be the first which the Marshal would receive in placing his foot on the soil of France.
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