' The news we receive of the military insurrection at Madrid 
continues to be of a very contradictory and fragmentary character. 
All the Madrid telegraphic dispatches are, of course, government 
statements, and of the same questionable faith as the bulletins 
published in the Gaceta. A review of the scanty materials at hand is 
consequently all I can give you. 

It will be recollected that O’Donnell was one of the generals 
banished by the Queen* in February; that he refused to obey, 
secreted himself in Madrid, and from his hiding place kept up 
secret correspondence with the garrison of Madrid, and particular- 
ly with General Dulce, the Inspector-General of the Cavalry. The 
Government were aware of his sojourn at Madrid, and on the 
27th June, at night, General Blaser, the Minister of War, and 
General Lara, the Captain-General of New Castile, received 
warnings of an intended outbreak under the leadership of General 
Dulce. Nothing, however, was done to prevent or stifle the 
insurrection in its germ. On the 28th, therefore, General Dulce 
found no difficulty in assembling about 2,000 cavalry under 
pretext of a review, and marching with them out of the town, 
accompanied by O’Donnell, with the intention of kidnapping the 
Queen, then staying at the Escurial. The design failed, however, 
and the Queen arrived at Madrid on the 29th, attended by Count 
San Luis, the President of the Council, and held a review, while 
the insurgents took up quarters in the environs of the capital. 

They were joined by Colonel Echague and 400 men of the 
Regiment “Prince,” who brought along the regimental cashbag 
containing 1,000,000 francs. A column composed of seven 
battalions of infantry, one regiment of cavalry, one detachment of 
mounted gendarmerie, and two batteries of artillery left Madrid on 
the evening of the 29th inst., under command of General Lara, in 
order to meet the rebels quartered at the Venta del Espiritu Santo 
and the village of Vicalvaro. A battle took place on the 30th 
between the two armies, of which we have received three 
accounts—the official one addressed by General Lara to the 
Minister of War, published in the Gaceta; the second published by 
the Messager de Bayonne, and the third a report from the Madrid 
correspondent of the Indépendance belge, an eye-witness of the 
affair. The first named report, which may be found in all the 
London papers," is easily disposed of, General Lara stating at one 
time that he attacked the insurgents, and at another that they 
charged him, making prisoners in one place and losing them in 
another, claiming the victory and returning to Madrid— enfin, 
leaving the insurgents masters of the field, but covering it with the 
dead of the “enemy,” while pretending himself to have only thirty 
wounded. 
The following is the version of the Messager de Bayonne: 

“On the 30th June, at 4 A.M., General Quesada left Madrid at the head of two 
brigades, in order to attack the rebel troops. The affair lasted but a short time, 
General Quesada being vigorously repulsed. General Blaser, the Minister of War, 
having assembled the whole garrison of Madrid” 

which, by the way, consists of about 7,000 or 8,000 men 

“made a sortie, in his turn at 7 o’clock in the evening. A combat immediately 
commenced, and lasted almost without interruption until evening. The infantry, 
threatened by the numerous cavalry of the insurgents, formed in squares. Colonel 
Garrig6, at the head of some escadrons, charged one of these squares so vigorously 
as to break through it, but was received by the fire of a masked battery of five 
guns, the grape-shot of which dispersed his escadrons. Colonel Garrigé fell into the 
hands of the Queen’s troops, but General O’Donnell lost not a moment in rallying 
his squadrons, and threw himself so vehemently on the infantry that he shook their 
ranks, delivered Colonel Garrig6, and seized the five pieces of artillery. The 
Queen’s troops having suffered this check, retired to Madrid, where they arrived at 
8 o'clock in the evening. One of their generals, Messina, was slightly wounded. 
There was a great number of dead and wounded on both sides in their murderous 
engagements.” 

We come now to the report of the Indépendance, dated Madrid, 
Ist July, which seems to be the most trustworthy: 

“The Venta del Espiritu Santo and Vicalvaro were the theater of a murderous 
combat, in which the troops of the Queen were repulsed this side the Fonda de la 
Alegria. Three squares successively formed on different points, were spontaneously 
dissolved by order of the Minister of War. A fourth was formed beyond the 
Retiro.” Ten squadrons of insurgents commanded by Generals O’Donnell and 
Dulce in person, attacked it in the center (?) while guerrillas took it in the flank (?).” 

It is difficult to conceive what this correspondent understands 
by center! and flank! attacks on a square. 

“Twice the insurgents came to close fighting with the artillery but were repulsed 
by the grape-shot poured upon them. The insurrectionists evidently intended 
seizing some pieces of artillery placed in each of the corners of the square. Night 
having approached in the meantime, the governmental forces retired in echelons 
on the gate of Alcala, where a squadron of the cavalry that had remained faithful 
was suddenly surprised by a detachment of insurrectionist lancers who had 
concealed themselves behind the Plaza de Toros. In the midst of the confusion 
produced by this unexpected attack, the insurrectionists seized four pieces of 
artillery that had remained behind. The loss was nearly equal on both sides. The 
insurgent cavalry suffered much from the grape-shot, but their lances have almost 
exterminated the regiment de la Reina Gobernadora, and the mounted gendarmerie. 
Latest accounts inform us that the insurrectionists received reenforcements from 
Toledo and Valladolid. There is even a rumor afloat that General Narvaez is 
expected today at Vallecas where he is to be received by Generals Dulce, 
O’Donnell, Ros de Olano and Armero. Trenches have been opened at the gate of 
Atocha. Crowds of curious are thronging the railway station whence the advance 
posts of General O’Donnell may be perceived. All the gates of Madrid are, 
however, rigorously watched.... 

“Three O'Clock P. M. same Day— The insurgents occupy the place of Vallecas, 
three English miles from Madrid, in considerable force. The Government expected 
today the troops from the provinces, especially the battalion del Rey. If we are to 
believe the most recent information, this force had joined the insurgents. 

“Four P. M—At this moment almost the whole garrison leaves Madrid, in the 
direction of Vallecas, in order to meet the insurgents who show the greatest 
confidence. The shops are closed. The Guard of the Retiro and generally of all 
Government offices have been armed in haste. I hear at this moment that some 
companies of the garrison yesterday joined the insurgents. The Madrid garrison is 
commanded by General Campuzano, who was falsely stated to have gone over to 
the insurgents, General Vista Hermosa, and Blaser, the Minister of War. Till now 
no reenforcements have come to the support of the Government; but the 4th 
Regiment of the line and the Ist Cavalry are said to have left Valladolid and to be 
marching in all haste upon Madrid. The same is assured with respect to the 
garrison of Burgos, commanded by General Turon. Lastly, General Rivero has left 
Saragossa with imposing forces. More bloody encounters are, therefore, to be 
expected.” * 

Up to the 6th inst. no papers or letters had arrived from 

* L’Indépendance belge, No. 187, July 6, 1854.— Ed. 

Madrid. The Moniteur alone has the following laconic dispatch, 
dated Madrid, the 4th of July: 

“Tranquillity continues to reign at Madrid and in the provinces.”* 

A private dispatch states that the insurgents are at Aranjuez. If 
the battle anticipated for the Ist inst. by the correspondent of the 
Indépendance had resulted in a victory of the Government, there 
would be wanting neither letters, nor papers, nor bulletins. 
Notwithstanding that the state of siege had been proclaimed at 
Madrid, the Clamor Piublico, the Naci6n, the Diario, the Espana, and 
the Epoca had reappeared without previous notice to the 
Government, whose fiscal informed them of this dismal fact. 
Among the persons arrested at Madrid are named Messrs. 
Antonio Guillermo Moreno and José Manuel Collado, bankers. A 
warrant was issued against Sijora Sevillano, Marquis de Fuentes de 
Duero, a particular friend of Marshal Narvaez. Messrs. Pidal and 
Mon are placed under surveillance. 

It would be premature to form an opinion on the general 
character of this insurrection. I may say, however, that it does not 
seem to proceed from the Progresista party,*'° as General San 
Miguel, their soldier, remains quiet at Madrid. From all the 
reports it seems, on the contrary, that Narvaez is at the bottom of 
it, and that Queen Cristina,” whose influence had of late much 
decreased through the Queen’s favorite Count San Luis, is not 
entirely a stranger to it. 

There is perhaps no country, except Turkey, so little known to, 
and so falsely judged by Europe as Spain. The numberless local 
pronunciamentos and military rebellions have accustomed Europe 
to view it on a level with Imperial Rome at the era of the 
pretorians. This is quite as superficial an error as was committed 
in the case of Turkey, by those who fancied the life of the nation 
extinct because its official history for the last century consisted 
only of palace-revolutions and Janissary émeutes. The secret of this 
fallacy lies in the simple fact that historians, instead of viewing the 
resources and strength of these peoples in their provincial and 
local organization, have drawn at the source of their Court 
almanacs. The movements of what we are used to call the State, 
have so little. affected the Spanish people that they were quite 
content to leave that restricted domain to the alternative passions 

“Le Moniteur universel, No. 187, July 6, 1854.— Ed. 

and petty intrigues of Court minions, soldiers, adventurers, and a 
few so-called statesmen, and they have had little cause to repent 
themselves of their indifference. The character of modern Spanish 
history deserving to receive a very different appreciation than it 
has until now experienced, I will take an opportunity to treat this 
subject in one of my next letters.* This much I may yet remark in 
this place, that little surprise ought to be felt if a general 
movement should now arise in the Peninsula from a mere military 
rebellion, since the late financial decrees of the Government?" 
have converted the tax-gatherer into a most efficient revolutionary 
propagandist. 

Austria holds at this moment the balance of war. If she has not 
yet marched her troops into Wallachia, it 1s only because she 
awaited the reply of the Emperor of Russia. The electric telegraph 
reports that Gorchakoff has now arrived at Vienna, the bearer of 
a disagreeable answer.” For the first time the Austro-Prussian 
summons, dispatched on June 3d, has been published in the 
Kolnische Zeitung. The principal passages in the Austrian summons 
are the following: 

“The Emperor of Russia weighing in his wisdom all these considerations, will 
appreciate the value which the Emperor of Austria must attach to a discontinuance 
of the advance of the Russian army in the Transdanubian countries, and to the 
obtaining from him positive indications as to the epoch, it is to be hoped not very 
distant, when the occupation of the Principalities shall come to an end. The 
Emperor Nicholas, we are far from doubting it, desires peace; he will therefore 
consider the means of bringing to an end a state of things tending every day more 
to become a source of internal trouble to Austria and Germany. We are sure that 
he will not drive the Emperor Francis Joseph to the necessity of considering for 
himself the means of saving his interests, so much compromised by the present 
situation, by prolonging indefinitely this occupation, or by attaching such 
conditions to the evacuation which it would be impossible for us to obtain.” 

The Prussian note‘ destined to support the Austrian “sum- 
mons” terminates as follows: 

“The King hopes that the Emperor will consent to place the question at dispute 
on a ground offering a practical issue, in order to facilitate a satisfactory solution, 
by abridging and circumscribing the general action of both parties. Our august 
master hopes, therefore, that the present step will meet, on the part of the 
Emperor of Russia, with a reception similar in spirit to that which inspired it, and 

No. 188, July 7, 1854.— Ed. 

Werther, June 12, 1854.— Ed. 

that the answer which we and the Cabinet of Vienna expect, with an interest 
corresponding to its importance, will be of a character to allow the King to 
withdraw from the painful necessities which would be imposed upon him by his 
duty and by his engagements.” 

Hess, the generalissimo of the Oriental army, will establish his 
headquarters at Czeraswitz. The Soldatenfreund* of Vienna gives 
the following biography of Gen. Hess: 

“ Feldzeugmeister’ von Hess was born at Vienna in 1788; in 1805 he entered the 
regiment Gyulay as ensign, was lieutenant of the staff at the end of 1815, and 
appointed lieutenant-colonel and military commissary at Turin in 1822. Colonel 
since 1829, he became in 1831 quartermaster of the mobile corps of Upper Italy. 
In 1842 he obtained the rank of lieutenant-marshal, and was chief of the staff of 
Radetzky’s army in 1848. To him must be ascribed the plan of the march upon 
Mantua, Curtatone and Vicenza in 1848, and that of the short campaign of 1849, 
terminating with the battle of Novara.” © 

With regard to the avowed intentions of Austria in the 
occupation of Wallachia, I will quote from Austrian journals. 

The Oberpostamts-Zeitung’ of Frankfort, organ of the Austrian 
embassy at the Bundestag remarks: 

“By its geographical position, Austria is obliged to work in the most effective 
manner at the reestablishment of peace, by actually separating, through the 
occupation of the Principalities, the belligerent parties, and interposing between 
them at the most important place. If the Russians retire behind the Pruth, the 
Turks and their allies cannot then cross the Danube. If we take further into 
account that both parties have gained one experience and lost one illusion—the 
Russians having lost the delusion of their military predominance and the maritime 
powers that of the omnipotence of their fleets—it ts clear that the actual situation 
renders the resumption of peace negotiations almost inevitable.” 

The Lloyd* in its turn, observes: 

“The disputed Territory, viz. the Principalities, would be left to the protection 
of a neutral power. A Turkish army could not take up a position on the banks of 
the Pruth. An armed mediator would stand between the forces of the western 
powers and those of Russia, and would prevent a collision in the Danubian 
Principalities. Thus there would be, in point of fact, an armistice on the most 
important theater of war. If, indeed, the possibility of peace still exists, this 
measure might promote it. There can be no doubt entertained either at St. 
Petersburg or elsewhere, but that the determination of Austria to occupy the 

reprinted in the Journal des Débats, July 6, 1854.— Ed. 
July 6, 1854.— Ed. 

Principalities has been adopted with a view to peace, and that at the same time it is 
the last step which can be taken for the prevention of a general war.” 

The last and most curious article in this line occurs in the 
Spenersche Zeitung* published at Berlin: 

“Tt is confirmed that the embassadors of the four great powers will hold a new 
conference at Vienna, firstly with a view to take cognizance of the convention of 
Austria with the Porte, and to declare it to be in conformance with the anterior 
protocols of the conference; and secondly to come to a mutual understanding as to 
the manner in which the principles established by the Vienna Protocol of 9th April 
may be so modified as to serve for the positive basis of the future preliminaries, 
not of war, but of peace.” 

In the meantime Austria has profited by these contingencies to 
project a new loan, of which the following are the terms of its 
official announcement: 

“|, The amount of the loan is provisionally fixed at from 350 to 500 millions of 
florins. If the subscriptions reach this sum, the payments are to be effected during 
three, four, or five years, according to the amount of the subscription. 

“2. The rate of emission is fixed at 95 in bank paper. 

“3. The interest to be at 5 per cent., paid in real coin. 

“4. The subscription is no forced one, the Imperial Government being about to 
appeal, through the constituted authorities of al] provinces, to the patriotism of the 
subjects of the State. 

“5. The loan will be employed to pay the State debt to the Bank, to the amount 
of 80 millions, with a view of thus restoring the value of the Bank paper. The 
surplus” 

it is very ingenious to call four-fifths of the whole a surplus 
“will be employed as resource for the budgets of coming years.” “ 

The Lloyd, of course, assures that this grand financial operation 
now contemplated (and almost for the first time!) must and will do 
away with the existing depreciation of the Austrian currency. Your 
readers will not have forgotten that it was this pretext which 
introduced almost every Austrian loan in this century.’ There are 
some points, however, in this grand operation which they might 
not hit upon, as they are carefully omitted from the above 
announcement. On this score The Globe of last evening remarks: 

“This loan will be national, i.e. every tax-payer will be called upon to subscribe 
in, proportion of the amount of taxes he pays. For the present some moral 

given according to the Journal des Débats, July 7, 1854.— Ed. 

compulsion will be employed to precede positive compulsion. In point of fact, 
therefore, the measure amounts to the raising of an additional sum of taxes at 
once, with the promise that this particular sum shall be repaid.” 

It is curious what resemblance this grand operation bears in 
point of its pretexts as well as in point of execution, with the late 
Spanish decrees that now prelude to a revolution. 

In my last letter I called your attention to the rights and 
position of the Wallachian people,’ in opposition to the diplomatic 
quarrels pretending to originate in their violation. A report has 
just appeared in the Paris Svécle, of M. Barbu Bibesco, prefect of 
Mehedintzi, in Little Wallachia, addressed to the Foreign Minister 
of the Porte,” in which at length we hear a voice raised for the 
people of the Principalities treated with such shameful indiffer- 
ence by the “defenders of civilization.” It commences with stating 
that 

“the Russians, to avenge themselves of the passive resistance of a completely 
disarmed people, abandoned themselves to the most abominable acts of cruelty and 
dilapidation on their retreat from Little Wallachia. They have carried away the cash 
in the public chests, the seals and the archives of the Administration, and the 
sacred vessels of the churches. When retiring they slaughtered the cattle which the 
numberless requisitions had spared;.and these cattle they took not away, but left to 
rot, merely to make the people feel their cruelty and hatred.” 

M. Bibesco remarks with respect to the then rumored entrance 
of the Austrians into Wallachia, that 

“even a benevolent foreign army is always burdensome for the country it 
occupies.” ° 

He says that Wallachia does not want the Austrians; that it Is 
able to furnish a contingent of 50,000 men, drilled in arms and 
disciplined. In each of the seventeen departments of Wallachia 
there are at this moment 3,000 gendarmerie, wood-keepers, 
game-keepers and ancient soldiers, who require only arms and to 
hear the drums beat, when they would burst upon the Russians. 
He concludes in the following words: 

“It is arms we want; if there be not enough in your arsenals, the many factories 
in France, England and Belgium do not want them, and we are ready to pay for 
them. Arms! and again arms, Excellency, and before three months there will not 
remain one single Russian in the Principalities, and the Sublime Porte will find a 
force of 100,000 Roumans as eager as the Osmanlis to pursue and punish their 
common and implacable enemy.” 

The poor Prefect of Mehedintzi does not understand that it is 
precisely for preventing them to have arms, and along with the 
Osmanlis to pursue and punish the Russians that Austria subjects 
the Wallachians to her occupation. 

Sir Charles Napier, say the cockney papers, is trying to make the 
Czar’s admirals come out from Kronstadt, and leave the protection 
of the granite-walls behind which they “tremble” before the 
Anglo-French fleet. But why don’t the English sailors come out 
from their wooden walls and fight the Russians on their element, 
the land? Be it observed, that in spite of the English bravadoes, 
the Russians came out from Sevastopol, and “damaged” the Fury. 

Baraguay d’Hilliers has been appointed commander of a 
division of troops to be embarked for the Baltic, the departure of 
which is fixed for the 14th inst.; England is to furnish the 
transports for 6,000 men. An equal number of troops with one 
field battery will be embarked on board the French ships. If we 
add to these numbers that of the marine-soldiers commanded by 
Col. Fieron, the effective of the whole Baltic division will amount 
to from 13,000 to 14,000 men, while at the same time the 
embarkation of troops for the Black Sea from Marseilles has not 
yet ceased; the process of disarming France having apparently not 
yet reached the desired point of “safety.” 

Written on July 7, 1854 Reproduced from the New-York