It was replied to, in less than three minutes, by the Europa batteries, and very shortly the engagement became general.  The plan of tactics employed by the squadron was that of steaming rapidly up and down, and concentrating their fire in turn on the various shore batteries.  Later on, the whole squadron assembled off Europa Point, and fired broadsides by electricity as they steamed past at speed.  The spectacle at this moment was a very fine one, the roar of the heavy guns of the ships being supplemented by the sharp, rapid report of the quick-firing guns, which were supposed to be sending a storm of small shell among the defenders of the Rock.  The incessant rattle of the ships’ machine guns was also heard in the intervals between the thundering broadsides of heavy ordnance.  All the ships were, of course, cleared for action, with topmasts and yards sent down, and it is needless to say they looked exceedingly workmanlike and formidable.

The various batteries on the Rock replied with great vivacity, and the general effect produced as gun after gun was brought to bear on the ships, and the white smoke wreathed itself round the many crags and precipices of the grim old Rock, was a sight long to be remembered.  The exercise afforded to both branches of the service was undoubtedly most instructive.  Our illustration is a sketch by Captain Willoughby Verner from one of the batteries above the Europa Flats, at which point the governor took up his position to watch the operations. —­Illustrated London News.

* * * * *

GIBRALTAR AND NEIGHBORHOOD.

Report by consul Sprague.

Notwithstanding that the political situation of Europe seems to be less threatening among its leading powers, still the uncertainty prevalent among those who are generally considered the arbiters of public affairs has had its influence in contracting the limits of speculative adventure, thereby circumscribing the general course of trade throughout the Mediterranean.

In renewing to the department my reports upon the navigation and general commerce of Gibraltar, I beg to state that there has been a tolerably fair current business prevailing in American produce during the past quarter, consisting chiefly in flour, tobacco, and refined petroleum in cases, imported direct from New York.

The steady demand for American petroleum confirms the fact that Russian petroleum so far receives but little attention in this market from the regular traders and consumers, so long as supplies from the United States can be regularly imported at reasonable prices.  It, however, remains an open question, in the event of lower prices ruling in the Russian petroleum regions, whether American supplies may not later on experience some greater competitive foreign interference.