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Later from Europe.

The steamer Palestine, from Liverpool on the 26th ult., arrived at New York, Tuesday evening. The Arabia arrived out on the 23d.

Business had been suspended for the Christmas holidays since the sailing of the Australasian. Political affairs generally were unimportant.

The political crisis in the United States was regarded as being more serious in England than at first supposed, and was attracting much attention. The London Times, in a leader, says it thinks it quite possible that the problem of the Democratic Republic may be solved by an overthrow in a few days in a spirit of folly, selfishness and shortsightedness.

Italian affairs continued unchanged.

It was reported that the French fleet was about to quit Gaeta, but a counter rumor prevailed in Paris that Russia and France had agreed to support Francis II, in his resistance until spring.

Great demoralization was reported to exist in the besieged army at Gaeta.

It was stated that a decree was preparing at Naples ordering an extraordinary levy of men between the ages of 18 and 55 years of age.

Placards had been posted at Rome, bearing the arms of Victor Emmanuel and the words: "We desire annexation to Sardinia." These placards were surrounded by crowds, but no arrests were made.

A circular had been issued by M. Schnierbing, of the Austrian ministry, detailing certain reforms granted. Its provisions are very liberal.

China advices state that the ratification of the treaty with the Allies was exchanged, and the Convention signed at Pekin, October 24th. The French army retired from Pekin, November 1st. The English would remain until the Ambassadors left. A large force were to remain at Tientsin till the treaty conditions were fulfilled. The principal clauses of the treaty are as follows: ‘The Emperor is to apologize for the Peiho affair of last year. English and French Ministers are to reside at Pekin. The indemnity fixed is to be doubled, and Tientsin is to be opened to trade immediately, and emigration is to be allowed.--Cowloan has been ceded to Great Britain. The Emperor's summer palace had been entirely burnt.’

The bodies of the English prisoners who died in the hands of the Chinese were brought to Pekin and buried. Captain Brabazon and Abbe Huc were beheaded by the Chinese about September 21st. Their bodies had not been recovered. The Emperor was still in Tartary.

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