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sorder, or the expedient of a European arbitration." Naval preparations. England is progressing with her preparations for an immense naval and military display in South America. Twelve hundred tons of shell and shot were shipped at Woolwich, on the 17th inst., for Canada, and a number of transports were lying off in order to take a like freight on board. Orders had been given for the manufacture of two millions of Minnie bullets weekly at Woolwich, to go on until countermanded. Admiral Sir R Dacres, in the frigate Edgar, is to join Admiral Milne at Halifax. In regard to the report that the celebrated frigate Warrior was to join the North American fleet, it is explained that the Warrior was about to embark supernumeraries for the Mediterranean and West India stations, and convey them to Lisbon. On arriving there she will transfer those for the North American and West India squadron to the Edgar, which would sail immediately afterwards to join the squadron of Admiral Mi