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ARRIVAL OF THE TEUTONIA.

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ARRIVAL OF THE TEUTONIA. SOUTHAMPTON, JAN. 12.-The Hamburgh and Ameri- can Company's steamer Teutonia, from New York at 10 a.m. on the 29th December, arrived off Cowes last night. She brings 37 passengers and 237,925 dollars in specie, of which 152,000 are for England, and the re- mainder for Havre. The Teutonia spoke the following ships :-On the 30th of December the Borussia, 280 miles east of Sandy Hook, and on the 3rd of January a large screw steamer, bound west, in lat, 47 N., long. 51 W. NEW YORK, DEC. 29.-The decision arrived at by the Government to restore Messrs. Mason and Slidell, and their secretaries, had a favourable effect, on the public mind in this city yesterday. It removed a load of care from men's spirits, and restored a degree of elasticity which was noticeable in every department of trade. The public pulse beat more evenly than it has done for the last five or six weeks. The Stock Exchange felt the in- fluence, and gave evidence of it in an advance in the price of Government securities, and a general movement in stocks. Even those who held that the action of Commo- dore Wilks was legal and justifiable felt gratified that the Administration entertained a somewhat different idea, and that it found a mode of postponing war without sub- jecting the nation to humiliation and disgrace. The New York Herald of to-day says All pros- pects of a war with England are brought to an end by the decision of the Cabinet to surrender the persons oi Messrs. Mason and Slidell to the protection of the British flag, from under which they were taken by Commander Wilkes. Mr. Seward, in the masterly document he has addressed to Lord Lyons, and in the sagacious in- structionf he transmitted to our minister in London, on the 30th of November last, upon this subject, has taken so clear, comprehensive, and unobjectionable a view of the entire affair, its legal bearing, and the position -which this country has always as- sumed upon the question of neutral rights, as to leave no point open for cavil either at home or with foreign Governments. This difficulty being set- tled, the Government now finds itself free and unembar- rassed to carry out with energy its crusade against the Southern rebellion, which Mr. Seward declares can be crushed out within ninety days after the hopes of recog- nition by foreign Powers are extinguished. The result is looked upon in Washington with the utmost satisfaction, as depriving the rebels of much strength, which they would certainly have acquired in case of a war with Eng- land and France, and also as a complete vindication of American policy established by Madison, and since reso- lutely contended for. At the dinner given yesterday by the Secretary of State to the diplomatic corps, the ter- mination of the difficulty was the subject of universal congratulation. There is nothing of importance to report from the army of the Potomac. General M'Clellan is fully restored to health. No official information was received of any action in Kentucky; but from other sources we learn that 60,000 men, the advance of General Buell's command, have crossed Green River, and are within five miles of thfl rebel General Hindman's advance posts. A battle is therefore looked for in a short time. "The British steamer Gladiator was at Nassau, N. P.. on the 16th inst., loaded with arms for the rebels, and was lying besides the United Slates' gunboat Flambeau,! who was watching her movements. The Government officials there, however, had declined to furnish coal to the Flambeau, while the Gladiator was abundantly sup- plied. As both vessels were constantly keeping steam up, and thus consuming their fuel, it was consequently a matter of time between them whether the Gladiator. 'would make good her escape—the odds, of course, being greatly in her favour."

THE OFFICIAL CORRESPONDENCE.…

MR. GLADSTONE ON THE AMEKICA.N…

EXECUTION OF PATRICK M'CAFFERAS…

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ARRIVAL OF THE " AMERICA."

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