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high-sounding dispatches were all written after the change of policy in the English Cabinet was definitely understood. Emboldened by his bloodless victories on paper, it is understood here that he assumed a similar tone toward the French Government, touching the Florida and the escaped steamer Rappahannock, and also with regard to the rams which were known to be building in France for the rebel Government. His position was so incautiously belligerent that he has received a reply from Drouyn de L'Huys which has put the Administration in a cruel predicament. The United States must either abandon its pretensions or go to war to maintain them. This, it is stated, is the only interpretation which can be put on the reply of the French minister. Hence the panic in the gold market, the call for five hundred thousand men, and the orders which have been sent to various naval stations to fit out the iron-clads instanter. Another telegram says: It is now alleged that the trouble