| Show till MAMHII STORY Idd Vemhirtier all silklurt tho 31r tlm London June C The Madrll rnr respondent of the 5tnd dAn says d-An account received from Bintlagu ot defensive preparation denotes that the sharp outlook day and night for any movements by the Amrcanl con tlnue s Detachments of t 040 regulars and 5000 volunteers composing the garrison at Santiago under Gen Llnre have been bell t to the Morro and Punta Oorda batteries Milk wok MV been greatly trenthene and are provided wih Krupp and lien t orla ones while IA Incpl Is I armed with hung taken from the Itelni Mercedes At the time of the attack by the mericans the La Socdpa guns were lerved by sailors from the ship while the was anchored I In a position to ineep the entrance to the harbor The Spanish start had connected with the shore works several lines of lubnrarliK toipedoea The torpedo boat destroyers Pluton and Terror Furor with tar up were on the watch several uteum launches had bn detailed as scouts In th navigable navi-gable channel and outside the entrance of the bay and the Almlranle Oautndo and the Cristobal Colon were ready to support the forts the former flying the pennant of the admiral lletween 3 and 4 oclock In the morning the scouts noticed two vessels ves-sels rapidly advancing toward the mouth ot the channel The fort About the same time opened up Just as th Merrimac VMS well Inside the passage Ihe Spanish officers havlos allowed her to pass the first submarine mine defense unmolested gave the signal to the land batteries the marine battery at La Socapa and the destroyers and launches to lira on the Merrlmac which vns sunk without completely blocking the channel Just as Admiral Cervera appeared on the scene with the Almlrante Oqucrdo The cruisers boats saved the Americans Meanwhile the other American vessel ves-sel 1 surpoitd to he the battleship Iowan Iowa-n retired The Spaniards suffered rw loss and no material ln damage The Impression In naval circles at Madrll Is that the Americans merely wanted to link the Merrlmao In the narrow part of the channel In order to block the egress of th Spanish lleet but It In argued that the wrk cnn bo easily dynamited as loon an Imlrl Cror omlder I unnecessary to keep It there Am n check to any attempt ot the Americans 10 force the pai Tho affair Is I said to hive caused much enthusiasm at Santiago where several 1 thousand regulars under Oen Iuco are expected having succeeded In crossing the river Cauto at the beginning ginning of the work They are now ttdvanrlng by forced marches In spite ot the rdlo wiOn the whole a tough resistance wi he made In case toug I fully exPected ex-Pected the Americans rncw tile nt ckWhen When the result of the Merrlmac Stair was known In Madrid the money market became animated whlla In or Ittleal and financial circles curf gICrl Impressions prevailed I uo fancying that the successive fall urw i of tho Americans might have the result of making the United Sttcn favorable to peace Financiers on tho at tier hand lira divided between patriotic patri-otic satisfaction and the feellng that the drift of the war means Its prolong atlon and pecuniary sacrifices eletil mental to Spanish credit Most of thp newpap attach Importance to tho Altair since It was shown that the Spanish forces me not only alert but wtl able to hol < fe nemy In check In ltal Vi for Cuba Gibraltar June GThe fleet class armored Italian crulser Carlo Alberto bound for Cuba has arrived her |