fell fighting, sword in hand. Having achieved
these conquests, Sir J. Keene, leaving a detachment for the protection
of Shah Soojah, returned home with the main body. Mr. M'Naughten
remained as resident at the court of Cabool. Such was the issue of the
campaign in Afghanistan. Subsequently her majesty rewarded the services
of the more eminent actors in the war. The governor-general was created
Earl of Auckland, Sir John Keene was created Baron Keene of Ghuznee
in Affghanistan; and baronetcies were conferred on Mr. M'Naughten and
Colonel Pottinger.

STATE OF THE CONTINENT.

This year witnessed the virtual conclusion of the war in Spain. The
principal event which contributed to this consummation was the rupture
between the chief Maroto and Don Carlos. Maroto, indeed, with the
battalions of Castile, made their submission, and his defection was
followed by twenty-one more Carlist battalions. The terms of this
pacification were effected by Espartero; and having concluded them, he
led his army towards Don Carlos at Lecumberri. Not daring to await his
arrival, Don Carlos withdrew into the defiles of the Bastan; and from
the Bastan he fell back to Elisonda; and, finally, on the 14th of
September, with six Alavese and two Navarrese battalions, he took refuge
in France. The French government assigned to him the city of Bourges for
his temporary residence, and he was escorted thither by Marshal Soult.
The Carlist chief, Cabrera, continued for some months to maintain
his ground in the central provinces; but the struggle finally became
hopeless, and at the commencement of the succeeding year, he, with
20,000 men, followed the example of his master, and took refuge in
France. In Portugal the arrival of the bill which had been passed for
the suppression of the slave-trade, gave rise to much dissatisfaction.
The author of the measure, Lord Palmerston, was loudly charged with
hostility to Portugal, and a great estrangement prevailed for some time
between the two governments. The breach was widened by the demand made
by the British upon the Portuguese government for the payment of the
long pending civil and military claims due to the subjects of Great
Britain. The requisition was, it is said, accompanied by a menace, that,
in the event of a non-compliance, the British government would resort to
coercive measures. During this year the territorial differences between
Belgium and Holland were settled. The terms which the five powers