Latest from Europe.The latest dates from Liverpool are to the 5th instant.
America per steamship China, indicating a continued war in the United States, has imparted a decided improvement to the cotton market, and rather unfavorably affected United States securities. The Confederate loan is reported unchanged. Rumble, the defendant in the pirate Rappahannock case, has been acquitted on all the counts. Cardinal Wiseman is reported to be rapidly sinking. The Index, the rebel organ in London, ridicules Mr. Blair's alleged peace negotiations, but does not altogether discredit the peace rumors. It asserts that the North is unmistakably tired of the war, and that more rational counsels are beginning to prevail. It claims that the abandonment of the sea-coast by the South will be an actual advantage, in a military point of view, by increasing the strength of its inland armies. The index then points out that friendship may be restored between the North and the South, and so close an alliance formed as to practically make a new Union. Under such circumstances, war with England or France, or both, would be a necessity. The Index contends that the United States Government is paving the way for such a war. It says that the war is reaching such a crisis that England and France must decide to become the friends of one of the belligerents or fight them both; and events are occurring which may precipitate that decision — at least in the case of France. In the mean time, the Index bids the friends of the South to be of good cheer, and promises them shortly a series of agreeable surprises. The Index also gives a rumor, which is alleged to be current in political circles, of the intention on the part of the British Government to sever its connection with Canada before the termination of the American war, so that the finest province of Great Britain may be seized without forcing England into war.
Paris between the American horse Shepherd and the French horse Express resulted in a victory for the American horse, he winning by a hundred yards. The Shipping Gazette announces that the French Superior Council of Commerce have modified their recent resolution to admit foreign-built vessels into the French marine duty free, by resolving that such vessels shall pay two franc per ton. M. de Lessps announces that a daily service of boats has been established between the Mediterranean and Red sea. The Paris Bourse, on the 3d instant, was firmer, the rentes closing at 67£ 15
Madrid Epoca of the the 2d instant says: ‘ "It would appear from the official reports of Admiral Pareja that there is a probability of the Peruvian difficulty being settled peacefully, but the frigate Numancia will, nevertheless, sail tomorrow, as the Government wishes to maintain a respectable force in the Pacific." ’