The Illustrated Usk Observer and Raglan Herald

TOWN TALK. r BY OTJB SPECIAL CORRESPONDENT. i Our will understand that we do not hold ourselves respon libit for our able Correspondent's opinions. IT has for the last twenty years been the custom of the Arch geological Institute to hold its annual meeting in some country town in Great Britain or Ireland, but on this, the twenty-first yeair of its existence, the London district has been Eslaeted for its explorations. Several interesting old churches in the City of London have been visited, as well as St. Paul's and the Tower, while, at the same time, "Westminster Abbey and Lambeth Palace have been inspected and lectured, upon. Tiie lecture upon Westminster Abbey by Daan Stanley was singularly interesting. Its importance as the burial-place of the Kings of England was dwelt upon, and the fact was pointed out that there was but one other building in Europe, the Kremlin, at Moscow, in which kings were crowned and buried. In an animated and vivid manner the Dean went over the list of royal personages buried in the Abbey, from Edward the Confessor, its founder, down to the Duke de Montpensier, brother of Louis Philippe, the only one of his house who slept in that royal asylum; concluding by ex- pressing a hope that both the family and the Roman Catholic Church would not grudge the en- tombment of an Orleans Prince in a Protestant church, if only to show that there was a connect- ing litik between two races, creeds, and kingdoms. Equally interesting was Mr. Hepworth Dixon's paper on the Tower of London. Whether regarded as a state prison, as a royal palace, as a fortress, as a mint, as a court of justice, as an arsenal, .as a military museum, or as a strong jewel- box, he showed that it filled th3 mind "with picture, poetry, and drama." From the many interesting incidents mentioned by Mr. Dixon I will select one which is in its way unique. Sir Henry Wyatt, a Lancastrian in politics, was a Etate prisoner in the time of Richard III. He had neither bed to lie on, nor clothes sufficient to warm him, nor meat for his mouth. A cat came one day down into the dungeon unto him, and, as it were, offered herself unto him. He was glad of her, laid her in his bosom to warm him, and by making much of her won her love." So runs the statement in the Wyatt papers, from which the above is a quotation, and which is founded on Sir Henry's own narrative. This extraordinary cat not only warmed him, bat when she could get one," brought him a pigeon, which he persuaded his keeper to get cooked for him. In this way was the prisoner provided with food from time to time by the faithful cat. When released from the Tower, he ever made much of cats," and had the one referred to painted with a pigeon in its paws, offering it through the grated window of his dungeon. This picture is among those histori- cal portraits now on view at South Kensington. This story must be ranked with the other wonder- ful and touching stories of tamed mice, rats, aad ths like, with which readers of life-long imprison- ments in dreary dungeons are familiar. THE Conservative President of the Poor-law Board has announced th",t lie does not intend to apply to the House of Commons for further powers to enable him to remedy the fearful state of things proved to exist in so many of the London work- houses, till he has tried whether the powers he now possesses, and which have hitherto not been put in force, are insufficient for the purpose. Mr. Gathorne Hardy states that he can compel the Boards of Gaardians to provide proper ward accommodation for the sick poor, efficient and sufficient medical superintendence, and competent paid nurses. IE this be so—and we may certainly assume that the new President would not com- mence his official career by making an ass of himself—what a reflection it is on the management of Mr. Vilii^s! All persons with any pretensions to humanity must be glad that the superintend- ence of the poor has passed into other hands; in fact, the only persons who will regret the change will be that portion of the Strand guardians wno last week tried to dismiss their medical officer on account of the independent nature of his evidence at the recent inquiry, and that section of the St. Pancras guardians who have jast refused to vote six shillings a week for a paid nurse to attend upon the sick. TEE shooting at Wimbledon terminated on Saturday last with the usual review, which at- tracted large numbers of visitors to the camp. Before the review came off the Princess of Wales distributed the prizes in her own graceful way. The Scotch carried off the Queen's Prize, the National Association Prize, the Saturday Review Prize, Lord Ducie's Running" Prize, the Wind- mill Prize, the Rifle Oaks, and the International Challenge Shield. At last Flodden is avenged. WHEN her Majesty went to and returned from Scotland recently a new electrical apparatus was tried for the first time, which enabled her to com- municate with the railway guard while the train was in motion. It would take too much space to describe the mechanism of this invention here, out it is sufficient to say that it was perfectly successful throughout the whole of the journey. The Queen telegraphed to the guard, and the guard telegraphed to the driver; and as the expe- riment was thoroughly tested and proved to be a success, there can be no reason why the plan should not be adopted by all the other railways. Ideed, I hear that the South-Eastern is already using the apparatus; and public opinion must ere long force the directors of other lines to do the same. A LONG career of what looks very much like reckless expenditure has brought the London Smashem, and Dover" to grief. At the instance of several creditors the Court of Chancery has appointed a receiver, so that the money now taken C;:tl1 only be distributed by order of the Court. Of course, the board of directors does not recognise tha propriety of the order of the Vice-Chancellor," and contemplates" early arrangements" by which the company will be able to resume the manage- ment. of its own affairs. When these arrange- j monts are concluded, a meeting of the unfortunate bondholders and shareholders will be called to o:.r;0i't'in their opinion on the subject. Mean- I I note the fact that about a year ago the j mrirket value of the paid-up stocks was from < £ 44 I to £4G, while now it is from £ 20 to £ ,22, with no I purchasers. What Tennyson says of the" solid 1, lands" may be said of the solid coin which has found its way into the treasury of this company "The hills are shadows, and they flow From form to form, and nothing stands; They melt like mist the solid lands, Like clouds they shape themselves and go." THE Thames Embankment on the north side of the river i3 slowly but steadily approaching com- pletion. On the south side, opposite the Houses of Parliament, the works are in such a forward state that the foundation-stone is to be laid by Mr. Tite, M.P., on the 21st of next month. It is on the land which will be here made that the future St. Thomas's Hospital will stand. Extending from the bridge to Lambeth Palace will be a handsome I pile of buildings, that in attractive appearance will prove a formidable rival to the new palace at Westminster. Progress is also being made with that other improvement of London, the Holborn Viaduct; foundations have been laid, and brick- work executed on both sides of Farringdon-street. Mr. MAPLSSON has closed his regular opera season, and is giving some cheap performances, by which means the same singers and operas may be heard for somewhere about half the money you have to pay during the season. In the theatrical world I hear that Mr. Fechter intends to reopen the Lyceum, assisted by Mr. and Mrs. Dion Bou- cicault. A CAST from Mr. Woolner's statue of Lord Macaulay, for Cambridge, has been placed in the South Kensington Museum. There those who admire the brilliant historian and essayist may see him sitting in his gown, half turning round in his chair-a simple and natural attitude which looks well from all points of view. The likeness is excellent, but it is in the nature of things that marble should fail to give that lit-up expression of his face when in animated conversation—an expression which gave such a peculiar charm to features which in repose was almost heavy. IT is statedthftt for the Derby of 1868 there are no leas than 263 entries, for the Oaks, 220, and for the St. Leger 244. lZ.

SUMMARY OF PASSING EVENTS. ::I> THE eyes of all the peoples, not only of Europe, but of the whole world, are directed to the war in Germany. Daring the past week rumours reached us daily that Prussians, Italians, and Austrians were preparing for yet another decisive contest. All the time, however, the French Emperor had been sedulously employed in an endeavour to ar- bitrate between the contending Powers. At the last moment we hear that an armistice has been agreed upon, but whether this will eventuate in a final settlement of the struggle for the German su- premacy is a matter upon which we are not able to determine. Hostilities were to cease from the 21st of July, and the belligerents agreed upon a term of five days to decide upon a treaty of peace. It is feared, however, that Prussia, in the heat of victory, will be too exacting in her demands, and that possibly France, seeing her dictatorial spirit, will resolve to humble her, and hence add another firebrand to the QIreacly inflamed state of the Con- tinent. Eog-land, we are thankful to sa.y, has re- solved, come what may, not to interfere; neither the ransacking of Hanover, nor the taking of Saxe Coburg and Gotha, or any other German States to which we are allied, will induce the British Go- vernment to declare war. Such is the feeling ex- pressed by the new Administration through the mouth of Lord Stanley. THE Derby-Disraeli Government have as yet met with no opposition, and they will probably close the present Session without coming to a division upon any vital topic. Meanwhile the Opposition are using their efforts to amalgamate themselves into a strong body before the next meeting of Parliament. A new club, called the "Cobden," was inaugurated on Saturday—Mr. Gladstone in the chair—at Richmond. This club is on a similar plan to that of the celebrated Fox Club. As a political association, it is about the most powerful which has come into existence of late years. It already numbers one hundred and forty-five members—eighty-three of whom are re- presentatives of the people. At this meeting the memory of the late Richard Cobden was drunk in silence, and the chairman paid the highest tribute of respect to him, calling him the apostle of Free Trade and the great promoter of peace throughout the world. Eirl Russell was present., and defended his conduct in foreign affairs as also his Reform Bill, and declared that whenever Government should propose progressive measures he should be ready to support them. THE cholera, which has been severe in Southamp- ton, has broken out in Newcastle, at Llanelly, at Liverpool, at Gravesend, and has now reached the metropolis, where many have died after a few hours' illness. The report of Dr. Simons to the Privy Council contains suggestions which, if ILI promptly acted upon, will no doubt do much to arrest the progress of the disease. The report lays particular stress upon the necessity of disin- fecting all choleraic discharges on bedding, clothing, and other substances with which the patient has come in contact. The Registrar- General also says:—<( Immediate measures should be adopted, by house-to-house visitation, to treat the disease in its earliest stages of diarrhoea, and the cholera excretions should be effectually removed and destroyed." The various local bodies have now an opportunity of showing, by their vigilance and energy, that they are deserving of the confi- dence reposed in their fitness for the discharge of the duties of self-government. The extraordinary range of temperature which has prevailed during the present month has, no doubt, had much to do with increasing the amount of sickness and the rate of mortality. For the week ending the 15th of July, the highest temperature in the sun was 125°, the maximum in the shade 85°, the minimum in the shade 56°, showing a range between the highest and the lowest of not less than 68 degrees. THE volunteer meeting at Wimbledon has been a great event this year. The fine weather induced numerous visitors to attend daily when the prizes were being contended for; and the knowledge that the Princess of Wales would with her own hand distribute the awards, caused such a multitude of persons to flock to )Vimbledon on Saturday as were never seen before. To say that her Royal Highness did this with grace and un- affected interest is to say little, but every recipient of a prize valued the smile of the lovely Princess as much or more than the token of merit. The sham fight which followed was well worthy of the volunteers, and the manoeuvres were per- formed in as effective a manner as could have have been done by soldiers of the line. The Queen's prize was won by Private Cameron, of the 6th Inverness Rifles. He is 19 years old, five feet six inches high, has been only two years a volun- teer, obtained in his first year's service a marks- man's badge, and this year won the great prize, obtaining five more points than the winner of last year. Singular to say, most of the great prizes went to Scotland, although the scoring on the English part was better than last year. WE really seem at last to be fairly getting rid of the cattle plague; week by week the numbers decrease, until now they are a mere bagatelle. Of course, the consequences of it are not so soon to end; but it is something to know that our prospects with regard to cheap meat, and so forth, are improving. In the meantime, possibly with a view of allaying anxiety in the matter, experi- ments have been carried on at the Veterinary College, at Camden-town, the result of which has been to show that dogs, at any rate, may eat the meat of diseased animals with impunity. I AN official paper just published shows that one I hundred and fifty-four appointments for the liquidation of limited liability companies have been made since the Winding-up Act passed in 1862, and the greater part of these have been "shut up" during the present year. Strange stories might doubtless be told respecting the way in which many of these companies have been got up;" as, for instance, in the case of one which was brought under notice a few days since, the memorandum of association of which appears to have been executed by porters, messengers, and others, in the employ of the company, one of them being a mere office lad, but described as a gentle- man, and the holder of 220 shares. Speculators, beware! THE Working Men's Clubs, all over England, appear to be progressing favourably, and some very pleasant gatherings have lately been held in connection with them. One of the great charms I of these clubs is that they are not necessarily I formed in all eases after the same pattern, but I may be adapted to the special requirements of the 'I members. Every kind of innocent recreation is afforded them. la some clubs athletic exercises are practised, in all draughts and chess are intro- duced. All the best papers are taken in, and a sufficient quantity of light literature is at hand. Perhaps one reason why these clubs answer better than mechauiss' institutions is, that the members are left more to themselves, and to do as they please, and rot cut and trimmed after the be good" fashioi, which was formerly practised. AN interesting fact comes to us from Lancashire, affording proofs that the cotton weavers in their day of prosperity have not forgotten the sympathy shown to than by the Londoners in their time of distress. At a Court of Common Council held at the London Mansion-house last week, the Lord Mayor presiding, a letter addressed to him by the Rev. William H. Jones, vicar of Mottram, Lanca- shire, and secretary to one of the principal relief committees, rOHd Toy the cb.le £ cleric asltin^ permission, on behalf of the cotton operatives, to I place in the Guildhall, at their own cost, a stained glass window, in the highest style or 0. to com- memorate tht extraordinary exertions of the Mansion-house Committee, at the head of whom was Mr. Cubitt, then L )rd Mayor, to mitigate the prevailing distress consequent on the cotton famine, and the gratitude of the whole of the Lancashire operatives for the munificent subscrip- tions of the citizens of London for their relief j during the calamity. The request was cheerfully I acceded to, and the subject was referred to a com- | mittee, with a view to their co-operation with the representatives of the operatives in Lancashire. It is understood that the working men connected with cotton mills have raised < £ 500 for this purpose, mostly by penny subscriptions among themselves. I This is a noble proof of the highmindsdness of a people who bore their sufferings bravely, and are ready to acknowledge the kifidnessof friends when prosperity again shines upon them. IN the iron districts, it is stated, about 10,000 men are oa strike. It appears that the iron masters have, in consequenciI of the great depres- sion in trade, resolved to reduce the rate of wages 10 per cent., seeing that, owing to previous advances which have been made, the average profits of the works have been reduced 75 per cent. On the other side it is alleged that, by the arrangements formerly entered into, the rate of wages was to depend on the rise or fall in the price of iron; and the working men still think it is a breach of the agreement to attempt to reduce wages in the face of an advance in the price of iron. It is a pity that some court of arbitration, or other body having the fall confidence of employer and employed, should not exist, before whom difficulties of this kind could be brought for adjustment, and thus avert the loss and misery occasioned by the barbarous system of strikes. WE rejoice to say that the Great Eastern is going on gloriously in the submerging of the Atlantic cable. The vessel has been favoured with fine weather. The three great dangers have been got over-first, the laying the shore end; secondly, passing down the submarine incline known as the Irish bank; and, thirdly, passing over a short steep valley, where the water sinks to almost as great a depth as in mid ocean-namely, 2,400 fathoms, or nearly three miles. The insula- tion and continuity, however, up to the time we write, having been declared perfect, we may reasonably hope that this great and beneficent scheme is near a triumphant completion. THE great Reform demonstration in London came off on Monday. The people were determined to meet in Hyde-park, contrary to the orders of Sir Richard Mayne, the Commissioner of Police, backed by the Home Secretary. Vast crowds of persons assembled, and found the park gates closed at seven o'clock; the crowd broke down the iron railings and made an entrance. An immense force of police, aided by the military, forced the people to retire; after which the Government orders were carried out with little trouble, and the main body of the crowd adjourned to Trafa gar-square, where they held their meeting, and then dispersed. 0

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VITRIOL THRO WTNG THROUGH JEALOUSY. At Hanley, on Monday, Elizabeth M'Dermott, a young woman of respectable appearance, who had been living in service, was charged with throwing vitriol on Barnard Sweeney. The prosecutor, who is a brick- layers' labourer, appeared in court with his face covered with a handkerchief, which was not removed, except for a moment to show the bench the extent of the injuries, and the sight then presented was sicken- ing. He stated that he lived at Hanley, and the pri- soner had been living at Burslem. He began to keep company with her about six months ago, but left her about three weeks since. He met her in the Market- square, Hanley, on Saturday evening, when she said she wanted to speak to him about the Welch girl she had heard he was going to marry. He told her he would see her far enough before he would speak to her, when she retorted that he had been drummed out of his regiment. He knowing, as he said, that her object was to puthim in a passion, walked on, and she called out, daring him to come back. He went to the police-station to get advice, in order to prevent her following him about, and afterwards was talking in High-street with a young woman who had come from Stafford, when the prisoner passed, went into a druggist's shop, and returning to him, said, Is this the Welch woman you are going to marry and make a —— of, as you have made of me?" He replied, "Yes," and she took a mug from under her shawl, and threw its con- tents into his face, saying, "Take that, you Cross-examined: He had not promised to marry the prisoner, nor did he know that her wedding dress had been bought. She had told him she was in the family-way by him. He did not know whether or not she came to him a fortnight ago to ask what he meant to do about the child. He did not know that she had been almost destitute since she left service. The prisoner was committed for trial. r

THE MISSION OF PRINCE NAPOLEON. "The mission of Prince Napoleon," says the Patrie, "was, we believe, suddenly decided upon in consequence of the receipt of a despatch from the head-quarters of the King of Prussia. If our information is correct, Prince Napoleon is charged, in prevision of the ^coaptation by Austria of the bases of peace, to arrange with King Victor Em- manuel the questions concerning both the armis- tice between the Italian and Austrian armies, and the cession of Venetia. We have announced the departure from Paris of the propositions made by the Emperor Napoleon as mediator between Prussia and Austria. They were sent the same day to Vienna and to the King of Prussia's headquarters. Calcnl&ting- the distances, and taking account of the difficulties of communication, they ought to arrive at Vienna before reaching King William. The answer of Prussia can hardly reach Paris before Friday, but her adhesion in principle has already arrived by telegraph. The reply of Vienna will be later."

STOPPAGE OF THE PRESTON BANK. The Preston Bank, which was established in 1844;, has suspended payment. The announcement was made on Thursday morning by a written paper, posted upon the principal door of the bank in Fishergate, which ran as follows In consequence of the pres- sure in the money market and temporary embarrass. ment, this bank is compelled to suspend operations for the present,—July 19,1866." This notice was put up just before the usual time of opening the bank (nine o'clock); and as merchants, manufacturers, and others turned up between that hour and ten on financial busi- ness, and realised the fact of there being "no admit- tanee," the excitement created when the announcement was first made became very intense, and for a time the street was very nearly blocked up with people. Early in the week several parties apprehended that a stoppage was at hand, from the fact of the bank authorities having pressed heavily for outstanding accounts in certain quarters, and they withdrew their deposits, determined to be on the safe side whatever was the result. On Tuesday and Wednesday there was a most unusual run on the bank, and it is said that fully E40,000 was withdrawn in those two days alone. On Wednesday evening the legal adviser of the bank authorities was consulted, and the result was the announcement above given. The bank is in the hands Act; and the shareholders number in the aggre- gate 113. The liabilities of tho bank are roughly estimated at JB1,500,000. The bank has branches at Lancaster. Srmthnort- ri'a'cK" i)um, ru'io-ivuuui, jueetwooa, Lytharn, ana Garstang. The weak place in the bank, if not the actual cause of its stoppage, has. it is asserted, been its connection with a number of cotton manufacturers. Several of them during the late cotton famine, and some even prior to the crisis which it caused, overdrew their accounts, or else, being hard pushed for money, had to mortgage their property; and not being able to realise upon the premises, mills, &c., so mort- gaged, or having pressed the parties named for pay- ment of sums owing before they had properly got upon their feet after tho late depression in trade, the bank authorities have found themselves in a difficulty, and unable to meet the demands upon tham, especially during the run upon their funds caused by an appre- hension of their financial weakness, they have had to suspend operations. To the shareholders the bank has hitherto been a profitable concern, the interest derived being at the rate of 20 per cent, per annum. The bank has suffered very heavily by its Blackburn branch through the came preridusjy assigned. Nearly all the shareholders are men of good position and sub- stantial means, and numbers of depositors are large employers of labour.

THE EUROPEAN WAR. FLORENCE, July 20. Prince Carignano and the Minister of War have sent their congratulations to Garibaldi upon the victories achieved by the volunteers at Ampola and Conditio. Twelve thousand Austrians have left Trent for Innsgsrucb. The Italian war guard is at Piave. FLORENCE, July 19. The decree organising the provisional administra- tion of Venetia and appointing special commissioners for the purpose has been egmially published to-day. Prince Napelaon has arrived at the head-quarters at Rovigo. July 19, Evening. The Marquis Pepoli has been appointed Italian com- missioner at Padua, Signor Mordini at Vicenza, and Signor Allieri at Rovigo. PARIS, July 18. A telegram received here from Vienna announces that M. Benedetti, the French Ambassador at Berlin, has arrived in Vienna, and had a conference with Count Menedorff. VIENNA, July 18. The commander of the Austrian troops in the Tyrol reports that, simultaneously with the engagement at Condino, several detachments of the infantry regiment under Crown Prince of Saxony made a demonstration on theright flankof the enemy's regiments stationed in the valley of the Chiese. The attack of the Crown Prince Regimant being successful, the enemy withdrew in great haste across the Caffaro, leaving 200 prisoners in the hands of the Austrians. Garibaldi is supposed to have been present at the engagement. BERLIN, July 18. The Official Gazette of to-day says:— Art. III. of the treaty of alliance between Prussia and Italy is as follows:—From this moment (the moment war is declared) the war shall be prose- cuted by their Majesties the Kings of Prussia and Italy with all the forces which Providence has placed at their disposal; and neither Prussia nor Italy shall conclude either peace or armistice without mutual consent." ITALIAN ATTACK UPON LISSA.. ZABA, July 19. Yesterday the Italian fleet, consisting of some iron- clad vessels and several steamers, opened an j b. upon the Island of Lisaa, on the coast of Tao oannouade began about heard here leads to the belief that the engagement was very severe. •, j.„ The artillery fire has recommenced to-day. SIEGE OF MENTZ. MANHEIM, July 20. The Prussians have commenced a regular siege of the Federal fortress of Ments. Boats on the Rhine are no longer allowed to proceed past the fortress, and the railway traffic with the town is stopped. THE NEGOTIATIONS FOR AN ARMISTICE PARIS, July 20. The Moniteur of this morning says:—" In reply to a communication from the Emperor Napoleon on the 4th July, the court of Berlin declared that it would only consent to an armistice upon condition of the preliminaries of peace being concluded first. Negotiations were thereupon opened between the courts of Paris and Berlin, which resulted in the court of the Taileries recommending to the belligerents the bases of an arrangement which Prussia considered sufficient to allow of the conclusion of an armistioe. Prussia engaged to abstain from all acts of hos- tility for five days on condition that Austria would pursue a similar course, and within that time the Austrian Government must make known its accep- tance or refusal of the bases agreed upon. The Government of the Emperor hastened to trans- mit this communication to the knowledge of the Austrian Government. If the reply from Vienna be in the affirmative, and Italy give her assent, an armistice may be signed immediately." THE ATTACK ON LTSSA. FLORENCE, July 20. An official account has been published of the attack made upon the fortifications of the Island of Lissa by the Italian fleet on the 18th instant. After seven hours' obstinate fighting Admiral Persano, with eight iron-clad vessels, silenced the Fort of St. George. A powder magazine in the fort was blown up during the engagement. The Italians had but few killed and wounded. Vice-Admiral Albini joined the squadron of Admiral Persano, who was about to give orders for adisembarka- tion, when he was apprised that the Austrian squadron was approaching to prevent this design from being carried out. The Italian fleet was preparing for an engagement with the Austrian squadron. ARMISTICE BETWEEN THE AUSTRIAN AND PRUSSIAN ARMIES. VIENNA, July 22. The armistice, to last for five days, between the Austrian and Prussian armies, commenced at noon to- day. Dispatches received here to-day from the Austrian head-quarters in the Tyrol announce that on the 21st instant the enemy, who had occupied the Val di Ledro in great force, was attacked by the Austrian troops. Colonel Monluisant crossed the Monte Pichea, 6,000 feet in height, with three battalions, and stormed Piene di Ledra and Brecece where 12,000 Italians were stationed. He captured 1,000 prisoners and withdrew to his position on Monte Pichea, the enemy not ven- turing to pursue him. Maior-General Kaim, with a portion of his brigade and half the brigade of Lieut.-Colonel Hoffern, drove back the enemy from their position in the direction of Condino and captured forty prisoners. Tne loss of the enemy in addition to the prisoners taken was very considerable. NIKOLSBURG, July 21, The Prussian troops continue to be concentrated on the Marchfeld before Vienna. A division has marched through this place in a southerly direction. More troops are expected to- day. AUSTRIA AND THE GERMANIC CONFEDERA- TION. PARIS, July 21. It is asserted on reliable authority that Austria haa consented to accede to the proposition of France, and retire from the Germanic Confederation, and to recog- nise a reconstruction of that body in which she will take no part. ENGAGEMENT BETWEEN THE AUSTRIAN AND ITALIAN FLEETS. VIENNA, July 21. Yesterday morning the Italian fleet, composed of 23 ships, including the ram Affondatere and 12 iron-clad frigates, was attacked off the island of Liasa by the Austrian squadron under the command of Admiral Tegethof. In the course of a severe action a large Italian iron-clad frigate was sunk by the Austrian iron-clad, Ferdinand Max, and another Italian frigate was blown up. All on board these vessels were Burfroua&?u Itt&tlir- =,chiD Kaiser waa down one, and forced the others back, losing in the engagement her foremast and bowsprit, 22 killed, and Oii W0unuyo» TU" "'1-_<1' hyco oaeiftincu exceedingly little damage, and is quite fit for action. After several hours' fighting the Italian fleet was driven back, pursued by the Austrian squadron, and the island of Lissa is tbereby relieved. The Italians made three attempts to disembark troops near Comissa, which were each time success- fully repulsed by the garrison. OFFICIAL ITALIAN ACCOUNT. FLORENCE, July 21. The following official account of the naval engage- ment between the Austrian and Italian fleets, dated the "Straits of Lissa, July 20," has been received here:- "The Austrian squadron not having made ita ap- pearance as expected, on the evening of the 18th, some of our iron-clad vessels forced thir way yesterday into the Port St. George's. This morning disembarca- tion commenced, when the naval videttes signalled that the enemy's squadron was in sight. The Italian fleet put out to meet them, and a battle commenced. Admiral Persano hoisted hiss flag oa the Affonda- tore, and bore down upon the Austrian fleet under a heavy fire. The stern of the Austrian Admiral's vessel was destroyed. The fight waa very severe. We lost the iron-clad Re d'Italia, whioh the Admiral had left. and which sank from a collision with the enemy at the commencement of the battle. "The iron-clad gunboat, Paleetro, caught fire, and the commander and crew refused to leave the vessel. She blew up amid their cries of Long live the King Long live Italy 1' No other vessel was lost or fell into the enemy's hands. "The Admiral renewed the attaok upon the Austrian squadron, which retired to Lesina without waiting for our fleet to come TAP, and the Austrians continuing their retreat the Italian squadron remained mistress of the scene of action. "The damages sustained by the enemy are consi- derable." Further intelligence is expected. The crew of the R6 d'Italia were nearly all picked up by the Vittorio Emanuele. Evening. This morning the Italian volunteers were attacked by the Austrians at Tiaruo. The latter were thoroughly repulsed. Further information received here from Lissa re- ports that one Austrian man-^f-war and two steamers were sunk by the fire of the Italian squadron. July 22. Baron Ricasoli has returned to this city. The Government is about to organise the Adminis- tration of the province of Treviso, which has been entirely evacuated by the Austrians.

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