The scales have turned on the side of peace. The Gordian knot is to be untied, if possible, not cut. The affairs of Germany are to be decided by articles, not by artillery. The crisis seems to have been brought about by a peremptory demand from Austria, that Prussia should evacuate the Electorate of Hesse-Cassel within forty-eight hours, under the alternative of a declaration of war. At the same time a dispatch arrived from Lord Palmerston, hinting that in the event of war, the other powers could not preserve their neutrality. Thus brought face to face with war, both Austria and Prussia were frightened. A conference was proposed between Prince Schwartzenberg and Baron Manteuffel, the Austrian and Prussian Ministers. This took place at Olmutz, where articles of agreement were speedily entered into. The essential point of the agreement is, that all measures for the pacification of Germany shall be taken jointly by Austria and Prussia. If the Elector of Hesse-Cassel can not come to terms with his subjects, a Prussian and Austrian battalion are to occupy the Electorate. Commissioners from the two powers are to demand the cessation of hostilities in the Duchies, and to propose terms to Denmark. The formation of a new German Constitution is to be undertaken by a Conference, meeting at Dresden, Dec. 23, to which invitations have been sent jointly by the two powers, who are to stand in all respects on an equality. In the mean time both are to reduce their armies, as speedily as possible, to the peace footing. This agreement of the Ministers was ratified by the two sovereigns. In Prussia the opposition in the Chambers was so vehement that the Ministry dared not meet it, and adjourned that body for a month, till Jan. 3, the longest period practicable, in the hope that by that time the issue of the Dresden Conference might be such as to produce a favorable change. In the mean time, opposition to the proposed measure has sprung up from an unexpected quarter. Austria had hitherto acted in the name of the Diet; she now coolly ignores the existence of that body, and proceeds to parcel out all the power and responsibility between herself and Prussia. The minor German States find themselves left entirely out of the account. They remember the old habit of powerful states, to indemnify themselves at the expense of the weaker ones, for any concessions they have been forced to make to each other; and suspecting some secret articles; or, at least, some understanding not publicly avowed, between the two powers, they tremble for their own independence. The sense of a common danger impels them to a close union, but they are destitute of a rallying point. A portion of them, with Austria at their head, had declared themselves the Diet; but if Austria, the constitutional president, withdraws, the Diet can not have a legal existence. The Dresden Conference, therefore, meets, with three parties, having separate interests and fears: Austria, Prussia, and the minor