In GERMANY the settlement of the Constitution makes little progress. The Saxon chambers were suddenly dissolved on the 1st, to evade a discussion in the Second Chamber on an address to the sovereign, expressing dissatisfaction with the conduct of the government on the German question; and the Second Chamber broke up in solemn silence, withholding the usual cheers for the king. The Wurtemburg Diet, for a similar reason, was prorogued on the 4th. The German senate has given its consent for the meeting of the Peace Congress at Frankfort, and its sessions will commence on the 23d of August. It is to be a New World's Convention of the Friends of Peace. * * * * * The King of PRUSSIA has recovered from the wound inflicted by the assassin Sefeloge. A royal decree has been published at Berlin, curtailing still further the Freedom of the Press. The system of "caution-money" is re-established, with the government powers of canceling the license to sell newspapers, and of refusing conveyance by post to obnoxious journals; and certain offenses against the press laws are "withdrawn from the competency of a jury." Among the journals affected by the decree is the London _Punch_, which has been proscribed in the city of Konigsberg and its province, and placed on the list of journals that are no longer permitted to pass through the post-office. * * * * * From PORTUGAL we have intelligence of difficulties with this country, growing out of claims on that government which have been in existence for many years. The amount claimed is about $300,000. The principal one grows out of the destruction of the American ship, the General Armstrong, during the war of 1812, by a British fleet, while lying in the neutral port of Fayal, and therefore entitled to the protection of the Portuguese government. According to the law of nations, Portugal is responsible for her failure to protect her; and although Great Britain is the party in equity responsible, the United States have to look, in conformity to law, only to Portugal. The claims have been unsuccessfully pressed for a number of years; but the administration of General Taylor demanded an immediate settlement. Our Charge, Mr. Clay, under instructions, had required an answer to his demands within twenty days, and an American squadron had meantime arrived in the Tagus to enforce them. Some uneasiness was felt as to the issue, but it was believed that the Portuguese government would yield. LITERARY NOTICES. LIFE AND LETTERS OF THOMAS CAMPBELL. Edited by William Beattie. In two volumes, 8vo, pp. 1077. New York: Harper and Brothers.