The New York Herald Newspaper, January 29, 1859, Page 2

2 ‘and th concede, that at this moment no Ame- rican ome fesey existing rights to the privilege of the transit. if the government of Nicaragua is allowed to take this position, it must be confessed that it may | contract with whomsoever it pleases; aud then the | opened by an American company Will be greatly diminished The Belly soheme will have | its principal object. van great made at Rivas in favor of tho French | company by both governments—of Costa Rica and | Nicaragua—has already been ratified by the Costa Rican Covgress, “provided Nicaragua’ ratifies What shall Nicaragua do in the case? Shall she as- sume the responsibility thus thrown upon her? We must not forget that the strong majority in the Senate and in the Chamber of Deputies is composed of men who wore exulting last year at the results of the Rivas trausactions, and thinking of Mr. Felix Belly as of the saviour of Cen: tral America. Sir William Gore Quseley will sap- , although indirectly, the European company. What shail the American’ Sinister support? Is it wonderful that the Nicaraguans judge of the two Powers here represented according to the | dignity and behaviour of their two representatives? | The American minister may be a thoroughly honest | map—nobody doubts it. All grant him “ honesty and a very good heart. But his age makes him a child, aud bis habits make bim something worse. What are then the honesty and the kind heart good for? He talks of everything to everybody. When he came from Costa Rica he showes himself as satis@ed with Presi dept Mora as if he bad made of him a convert to the Mon- roe doctrine. Now we see that Costa Rica has ratifled—in 8 much as it concerns her—the Belly contract, in cluding the statioving of two Frevch men-of-wa on the Lake of Nicaragua. This is the interpre tation given by President Mora to the prin ciples of Mr, Mouroe. This is his conversion. Shall the government and Congress of Managua be converted fn the same way? If such must be the case the American ‘Minister bad better not undertake their conversion. The month of Janunry—and probably stil! more, the next month of February—will show at last what is the policy which may be expected from Nicaragua in ber re lations with the United States. The various questions which will be discussed by this Congress are of immense importance, and their decision requires a very wel defined line of policy; they do not admit of wavering and evasive postponement. "The government and Congres will be obliged to speak and act in a definite tone and manner. Itis bard to foretell from this moment what wil be their words anc their decisions. As for President Martinez, I think the messages of Gene- ral Jerez and\the verbal reports of the Secretary of Legation, Mr. Perez, bave somewhat modified the bad im. pression chat Walker and his fellow vandals had made upon his mind with regard to the honesty and good character of the United States. If in this moment, the United States bad near the government of Nicaragua a representative who should be a living evidence of what General Jerez and Mr. Perez say about the administration and the people of the United States, it is probable that the actual President of Nicaragua would not be affected by the influence of European partisans and of anti American ultras. Unfortunately that is not the case, and therefore bis mind will be worked only by tbe men of one side of the question; and this, in spite of his wishes to be quite impartial, will perhaps incline bim rather to the inte rests which are pow so well defended in Nicaragua. If such is the result he will not be the only one to be blamed. OUR REALEJO CORRESPONDENCE. Rearwo, Jan. 6, 1869. President Martinez Visting the Departments—Opening of Port Yeaco— Visits Leon and Returns to Managua—Ke- ception om Board the Merrimac and Decatur—Friendly Frelings— Gen. Lamay—The Decatur Gone to San Juan del Sur, de. The new Congress, under the new constitution, com- posed cf eleven Senatorsand ten deputies, were to convene ‘their session at Managua on the Ist of January, 1859. President Martinez, his Cabinet, principal officers, civil and military, with a large escort of the army, left Managua on the 24 day of December, went to Leon, where they stopped a few days, afterwards they paida visit to the Department of Chinandega, and went to Punta de Yeaco, in the Bay of Realejo, in order to examine into the propriety of transferring the Custom . NEW YORK HERALD, SATURDAY, JANUARY 29, 1859. : they bave relapsed into their old habits of perfect indif- » ference tows Hi nations, the United States in particu. Jar. Meantim@fir W. Goro Ouseley is here, and will effect all he wants; and Monsieur Belly’s contract, which is now before the Congress of this country and Costa Rica, will, I bave but little doubt, be ratiled by both. So much for procrastination and needless delay on our part. ‘The general opinion in Nicaragua among our country- men is that we have been served perfectly right. OUR LEON CORRESPONDENCE. Leox, Deo, 20, 1858, Movements of (en, Lamar—Chances of the Cass-Frisarré Treaty—Obstinacy of President Martines and the Nicara- guan Congress—Sir Wm. Gore Ouseley at Leon, Be. Gen. Lamar left here this morning for Managua, the Feat af government, where he intends to urge the decision of some pening claims of American citizens, and the Speedy ratification or rejection of the Cass-Yrisarri treaty, with the slight modigeation which the American govern- ment has consented toagree to. It may be almost assured beforehand that the treaty will not meet with the appro- bation of the new Congress, which is to open its sittings at Managua on on the Ist of January. As Gen. Jerez could not possibly induce Gen. Cass to accept the substantial modifications which the last Consti- tuent Assembly of Nicaragua had proposed to the Cass- Yrisarri treaty, and the only one which the American go- vernment would admit of is not a very material ono, it is to be supposed that the new Congress whose members are almost the same as the ones which sat_as the Constituent Assembly, will never ratify a convention which was held up to them by Mr. Belly and other French and British oracles as the ruin of this coun- ty, and the last blow given to its independence. As for President Martines, he has shown, in a very evi- dent manner, how strongly opposed he is to the Cass- Yrisarri treaty. He bas now, perhaps, modified a little his opinion about the “American spirit of absorption;”’ he does not think now, perhaps, so badly of the American government and of the American ministers as he did when he signed the famous manifesto at Rivas, boranse he has beard Jately some good counsels; aud the secre tary of General Jerez brought to Nicaragua a botter opinion of the people and government of the United States than he had before he started with General Jerez for the Nicaraguan mission to Washington; but although the feelings and sentiments of President Martinez towards the United States may have been greatly modifled through the reports of Gen, Jerez and the assurances of Secre- lary Jeromino Perez, it is not to be exnected that his con- version is yet effected. In order that he muy throw away bis deep seated prejudices against Americans, be must lose his long entertained delusions and faded hopes about the so Jong expected “Anglo French protection.” , Sir Willian Gore Ouseley is now ‘here, and goes to Managua. He will speak to the Presi- sident, to the Cabinet, and to the members of the new Congress; and certainly, Sir William, bac Queen Victoria, will be listened'to by them ‘with more confidenee than General Lamar, backed by President Ruchanan, ‘Things, however, have come to such a crisis that it it may be this country will open at last her eyes to see her real interests; but I cannot expect it to be so. Only time and circumstances may, after many years, ef: ace the immense evil worked by Walker on one side, and Belly and fellow Europeans on the other. OUR SAN JUAN CORRESPONDENCE. Saw Juan pet Nonrg, Jan. 4, 1859. ‘The News of Walker's Coming in San Juan—How it Affect ed the Natives—Comflicting News from the Interior— General Lamar Humbugged in Costa Rica—The River Traile and the Transit Route Men, dc., dc. The people of this interesting town were thrown into ywite an hysterical excitement on New Year's morning. The United States ship Jamestown came up from Aspin- wall and brought the intelligence that Walker and a num- ber of his followers had leftthe United States for this port on the 7th ult. Antonio de Barruel, sometimes called “Lorito, the Parrot,” was most seriously affected by the Houee of Realejo to said point, called Punta de Ycaco. President Martinez found the measure very convenient, and the transfer of the Custom House is already decided and decreed. Measures baye been already taken to pre- pare in that spot the necessary buildings for that purpose. ‘The estero or channel of Santa Paula will be cleaned so as to make a convenient Isnding place for passengers and merchandise near the hacienda of the Polyon,a sugar plantation belonging to Mr. John Deshon, an American Citizen. From the landing place the road now existing to Leon will be put in better condition, so as to give it a dis- tance only of eighteen or twenty miles. The merchants of Leon are exulting at this determination. ‘The President and Cabinet went back to Leon on the 234 of December. There they passed Christmas day and the de la Pascua, leaving again for Managua on the morning of the 28th. During his visit to Punta de Ycaco President Martinez. with hie Cabinet and officers, were received on board of the Merrimac and of the Decatur. The reception was a very cordial one. Flag officer Long gave bis illustrious guest a splendid collation, President Martinez visited carefully all parts of the magnificent frigate, and be was exceedingly pleased with the beauty of the vessel as well as with the hearty manner in which he was received by all the officers of the United States Navy. He speaks very highly of them; and be recommends to all his friends in Nicaragua to go to Punta Ycaco, and see the great frigate, if they wish to see something grand, beautiful and agreeable. ‘He was delighted with his visit, and the officers of both ships, the Merrimack and the Decatur, have been also ex- tremely pleased with the dignified and amiable manner in which the President behaved himself during his visit. He was saluted with ee guns by each vessel at his departure from on board. ‘The United States Minister was on board of the Merri- mack during the visit of President Martinez. They sat together at table very friendly Tt is believed that this event will predispose a little better the mind of General Martinez towards the equita- bie and friendly termination of icaraguan pending questions with the United States. ‘The Decatur will leaye to-morrow, bound to San Juan del Sur. She will come back to Punta Ycaco in two or three weeks. 1810, Jan. 5, 1859. Naval News—Courtevies to Pre Martine:—General Lamar—Sir Wm. 1ariff—The Happy Family of Teansit Route Agents Living in One Room—The President's Opinion of the Principale—Loss of American Prestige, dc The Unxed States frigate Merrimac, the { Pacific squadren—flag officer J. ©. 14 ancho Punta Yeaco, a few miles below this place. The sivop of. war Decatur, Commander H. K. Thatcher, has zone to San Juan dei Sur, wheré she will probably remain some two or three months, when her cruise will be up, at the ex; ration of which time she will doubtless be ordered Panama, and her officers and crew sent home via that route On the 24th ult, President Martinez und all his Cabinet, togethér with some two or three ex Presidents, visited both ships, and were received with all the honors due to owe own chief magistrate; and, on their departure, were saluted with twenty-one guns and manned yards—some- thing quite new to these dignitaries, who were highly eased with the attentions they received oa board the ferrimac and Decatur. Commodore Long and Captain ‘Thateber treated President Martinez and saite with marked attention, which was duly appreciated. The President and Cabinet baye been making a tour through this part of Nicaragua, attended by a host of the better classes of the Leonese, many of whom, of both lent Ouseley—New Gore 1 off news, and could be seen at all points hurrying along the streets, denouncing the American government and all emanating therefrom as a set of filibusters, &c. De Bar- ruel, Sr., alias the Viscount Beauvert, was entirely upset, and the contortions of his monkeyish looking face were dis- tressing in the extreme to look at. The little deputed representative of Colonel Cauty, a sort of semi-dancing Jemmy, in a funny military dress and a very penetrating pair of brass bowed spectacles, was Ikewise very seriously afflicted. The Dutch Mayor of the town behaved with great calmness, declaring that he placed full reliance in Sir Gore Ouseley to defend himself and the town from all harm, whether it came in the shape of Walker or ‘dur tuyful.’”” But the day passed away and no Walker appeared, nor dol thiok there will. Tue British ship Diatem got under way yesterday, as it is faid, to look after the dlibusters, and the United States ebip Jamestown is cruising off the river Colorado for the game purpose, and there are two English and onr own ship Savannah lying at this port. What can Walker ex- pect, but to be caught, should he come this way? learn, from what I deem good authority, that Nicara- gua has atlast become disgusted with the “Belly clerk’* and his insane old father de Barruel Beauvert. It is said that the government has dismissed the younger de Bar- ruel from office, and that serious charges are to be pre- ferred against bim, should he be caught in the interior of the State, in connection with his management of certain correspondence from France. The news from the interior is as conflicting as usual. One will tell you that the country is enjoying perfect and delectable peace, another will announce a revo lution just on the eve of breaking out, and a third that Sir William Gore Ouseley is giving notice to the go- verrmeni to pay up the claims of British claimanis, or be will incontinently annihilate the republic. But none of these publishers of news can be relied on. There is, however, an incontestable fact existing in Nicaragua, and that is that the peopie are ali but starved out; and if in the Micawber line does not soon “ turn up,” hole State will be emphstically a republic of pau Costa Rica gave Mr. Lamar immense satisfaction. pers. Mora fawned upon, feasted him and wen his confidencs but arcely was is back turned before Mora ratiled . although Mr. Lamar had been made to believe that he repented of the part he bad takeu i nection with it at is said that Martinez intende to ratify the contract with Belly, or kas already done so, notwithstanding the stand taken by Mr. Cass, and which was long ago made known to the President ‘and government of Nicaragua, We shall see The little steamer Laura Frances was loaded and ready to leave with freight and passengers for Granada, w the Jamest tivoly nr California. y or two to ington would come, and he came to unchor y an side, where a bright look out is kept up for the expected steamship. The oli! Transit mon, taktug the lead of Joe Scott, declare it an impossibility for any ‘anderbidt to open this route, and seem to great amount of generous pity for all those who differ with them, Speaking of expect th ston, if the Stebbins- White Company does vot succeed, Belly’s contract fs the next in order, and, I fear, will be strongly support ed, leaving the interests of our ‘own government entirely i the background. It is nonsense to talk about the Van- ¢ Vanderbilt, Transit, or, indeed. of Vanderbilt him- Notwithstan ing bis multitudinous agente—Webster, Miller, Spencer, and all the rest of such characters—Van- derbilt hae no chance in case White fails: for Belly is the next in order, as 1 e said; and whether our govern- ment cares a Ag for White or not, it is the interest of thi government of the United States to support him. Neith: England, France, nor any other government will oppose White if’ our government endorses him; but should White fail the American interest would receive a severe blow, JANUARY 5, 1859. sexes, honored the flag ship 4nd Decatur with their presence. Gen. Lamar algo visited the ships, and remained on board a few days, but his feebie health compelled him to retire mto the interior. The British war steamer Vixen, after landing Sir W. Gore Ouseley, family and Secretary, made a trip to Ia Union, Salvador, and bas since sailed for Panama. Sir William is fortunate at finding the only good, comfortable house in Leon, that of Mr. Thomas Manning which was placed at his disposal, already furnished. He was received with every demonstration of respect by the authorities and people of the town, who formed a procession and escorted him to his place of residence, The frigate Merrimac wil! soon be compelled to go to Panama {or provisions, The Decatur has a sufliciesey to last her until the end of her cruise. The new tariff, increasing the duties on all articles of importation from #ixteen to forty per cent, went into effect ‘on the Ist inet. Spencer and another party, agents for the Philadelphia Van Dyke Company, Rosa Perez, Vanderbilt's agent: and Schlessinger and Gotte:l, representing Joe White ¢ al., are still at Leon, waiting for something to “tarn up.” As they each represent conflicting interests, one would suppose that they would occupy Separate rooms, but, strange to say, they do not—they all occupy one room at the hotel in Leon in common! It is hard to tell what success the different applicants for the Transit wili meet with. I am inclined to think that none of them wil! be successfnl, ag President Mar- tines is exceedingly obstinate, and if he once takes up a prejudice against the parties applying for the right of way over the Isthmus, nothing can move him. When asked a short time ago what were the views of the gov- ernment respecting the various Transit companies repre- sented in this country, he remarked that it was diffiealtto tell what the result would be. But as for the White#teb- Dins Company, he said their proposition never would be accepted. He considered them entirely out of the question. ‘The proposition made by the Van Dyke Compauy he re- garded, he said, as very fair; but nothing was known in Nicaragua as to'their ability’ to perform their engage Tents, provided the goverument entered into a contract em. with them. ‘As for Vanderbiit’s proposition,” continued the President, “ it appeared Vnafertiverst and better jo renatciesyy wat rs ark Lf *. ex- clusive privilege; ce In Van- derive by honesty ; and Mot believe he (Vander. bin) raul open tse route It 80, see President Martinez, after all, is prott; weil posted Sites Chardsaar Of the race in ones he fis dealing. From this you may perceive that there is aot much chance of either of the companies succceding, or of the Transit being opened very soon. As Americans we bave lost all prestige in this country. ‘Toe time has gone by for us to do anything. The Koglish und French have completely suppianged us. General Lamar has, in fact, done nothing towarda ad- ‘vauctng American interests Ip ghis country. Had he acted towmptly, directly after the uigation of Gen. Cass’ Beiter ‘a8 regards the enforcement of the Monroe doctrine government acceded to Khe ould have acoormplished what we wanted. The govern- It is now time for the closing of the mati, and the Wasb- ington bas not made her appearance, Col. Childs, having apparently become discouraged, bas been on his way to Granada gome hours in the little steamer Laura Frances, and it seems doubtful whether our expectations of secing the Washington will be realized. Sax Jvay pm Nonre, Jan. 14, 1859. ‘The Wreck of the Susan—The Washington Gone to Aspin wall—San Juan Well Provected—Who Boarded the Wash” inglon?—Nom interference of the English; de. A-schponer arrived here yesterday, and reported that the Susan had been wrecked noar Belize, on the coast of Hondurae, and that all of Walker's men had been taken back to Mobile. ‘This information was derived from the English Consn! at Greytown, who gave it as official information received from the schooner, and was generally regarded as true. ‘The impression seems to be that had the Hermann been on the other side, and it had been necessary for the Wash- ington to have landed her passengers, it might have been done without any diffierity. ‘The Warbington left here to-day for Aepinwall, where she will remain until the San Francisco mail arrives, ex- pecting to hear something of the Hermann’s whereabouts, Should nothing be heard of the Hermann’s being on the other side, and no definite information of her expected ai rival there in the course of afew weeks, then the Wasl ington will proceed round the Horn. There are some two hundred anwengers ‘bound for California via Cape Horn. This_ pi is bom well protected, there being five ships of war lying off the month of’ the river, two English and two American men-of-war. The Jamestown boarded the Waehington some fifteen miles off, coming up near the mouth of the river. She was boarded by the Savannah; the British man-of-war Cezar, lying near by, did not disturb her, The Valorons lies inside the bar, up near the town. Her Britannic Majesty's steamer Diadem came up and anchored between the Cresar and Savannah, having just come in from a cruise. San Joan vet Norte, Jan. 17, 1859. Return of the Washington—The River Steamer—Rritish Men-of- War—The Harbvor Nearly Closed in—The James- town SL on That Cruise—Legttimacy of tha Belly Con trad—Guardiola and hie Bravee—Luzurtes from the In- terior—Old De Barruil Hoamed— British Steamer Trames ond the Pilot—The Weather—Troubles of Martine: Provotle Abdicatim—The Plenipos—Hope of De Har- ‘Tuil—Old Setilers Returning to the Line, de. The steamer Washington arrived on the 11th, with two hundred and fifteen passengers, again intending a conace tion with the Hermann at San Juan del Sur, and again dis. Qppointed. Thirteen mon were landed, having entered the Service of the company, with a large supply Of stores and Utensils for the company’s Inborers, and the stoamer de- ‘on ‘hie ia ashe was by our ships of war— suent here was greatly frightened, and really thought we Pecan) sonmghhing. Bul Gnding that Gou, Lamar did nothing parted for Arpinwall on the 13th, The river steamer Laura Frances towed out the Savannah, which vessel is now lying outside, with the British men- of-war Diadem and Cesar. The bar is making ata fright- ful rate, the Valorous being the only vessel of war daring | @ndugh to remain within. You can toss « biscuit from the point to the main and, and within this channel thero is only seventeen fect of water. The Washington did not venture in, but discharged the provisions by lighters out- Bide, and tbe heavy sea breaking around them made it anything but a pleasant duty. . ‘The men-of-war are riding very uneasy outside, while many of the crews are on the sick list; and for any benefit they are to this country, Great Britain or ourselves might just as well be in the service of the Kickeraboos. The Jamestown is still cruleing off the mouth of the Colorado for the coffee planters, which were to land at Omoa; and no doubt they are having @ delightful time of it, Martinez is preserved, by accident, a little while longer, to “‘palter with us in adouble senge.”” Ho still recog- nizes, with Mora, the legitimacy of the Belly contract, and gives his countenance to French and English intriguers, rather than to the plain miatter of fact sense, right and reason of the Cass diplomacy, Guardiola and bis Indians must be lent, and wait a littie longer for their descent upon Nicaragua; and the ba ig Wag 8 be conjent to cp waged a cnr amothering their | bur against tyranni masters, assured that the hour for redress and vengeance is certain to arrive. The San Juan route is in good condition, and the only thing that appears n to bring the route iato suc- ccasful competion with the Tehuantepee is the connection with the Hermann on the other aide. The Laura Frances is now making regular trips up and down the river with merchandise, aud is supplying the Greytown market with every luxury from the interior, ‘The news Which the Jamestown bronght of the departure of the Susan threw the * greagers”’ once more into spasms. But old De Barruil, who knows everything, declared it was apother hoax; so that if the Mlibusters had not met with the accident they would have caught them all nap- ping above. Martinez having prepared to contest their jancing at Realejo, in the south, they were unguarded, and open to the ravages of the wild Todlans of Honduras, headed by Guardiola, and the filibusters in the north, their march to Leon would have been accomplished with: out opposition. ‘The British steamer Thames, not being able to cross the bar, leaves for Aspinwall four or five days earlier than usual, and has discharged her pilot, Jack Lang, an old and much valued officer, a8 being useless where harbors are wanting. Jack tells us he will now patiently wait for a flood from above to clear the harbor of San Juan. The weather has been flue for some time. The wind blows strongly from the north, rolling np the sand in many litde bills, and the heavy seas without keep the cumbrous men-o!-war of John Bull sadly dancing. ‘The mails have been very irregular from the interior of late, and therefore we bave received little reliable ne we. There is a report that Martinez, having been lately so troubled with conflicting rnmera, followed by mest dismal dreams, is about to resign the Presidency The Sopbs are e€pecting wondrous things to be done by their Plenipotentiary; and De Barruil, the agent of Ni caragna, is building castles in the air larger than meeting houses, with the reprisal looked for. The inhabitants are now beginuing to believe in the suc: cess of the Transit, and many of them making arrange ments to settle once more at the different points on the river and lake, reopening their little “tiendas,” tor the purpoge af accommodating the passengers in their transit, OUR ASPINWALL CORRESPONDENCE. AspINWALL, Jan. 19,1859. Arrival of the Transit Steamship Washington—She Sails for Greytown and Returns—The Hermann Cannot Connect’ with Her—About to‘Leave for Jamaica and Run Around Cape Horn—Sa® Juan del Norte Harbor’ Filling Cp—The Frigate Savannah Goes Outside&United States Sailors in @ Row—Other News from the Squadron, de. The steamship Washington, Capt. Welch, witli near 300 passengers, arrived here.on the 7th, aud sailed for Grey- town on the following day. She returned again on Friday, the 14th., and is at present in our harbor. The intelli. gence from San Francisco by the Golden Age that tho Hermann is in the clutches of the Jaw and the keeping of the United States Marshal, bas dispelled all hopes of, her connecting here with the Washington, and the latter will leave here this afternobn for San Francigco, via Cape Horn. She proceeds directly to Kingston for coal and supplies, and then heads away for her destined port—at least so say her officers. By coming here she will have to steam directly in the teeth of the trade winds about 1,000 miles—all of which would have been avoided had she gone direct from New York. Her steaming up and down the coast here, and over the Ca- ribbean, has been perfect child’s play. ‘The harbor at Greytown is rapidly filling up. ‘The Savannah has been compelled to come outside and anchor, for fear of being caught inside. ‘Two Sabbaths ago a number of drunken sailors from the Roanoke were on shore, and there was a little disturbance with the local police on account of the arrest of one of the sailors. The authorities and others bere are trying hard to make something fmportant grow out of it. Per- sonally, I regard it as asilly, unimportant drunken affair. ‘The Roanoke is in thi port, awaiting the arrival of flag officer McCluney. ‘The Savannah is at Greytown. The Jamestown is cruising between here and Greytown, looking for iilibusters. OUR COSTA RICA CORRESPONDENCE. Ponta Arenas, Jan. 17, 1859. Extra Session of Conaress—Ratification of the Belly Com. tract—National Holidays—Banishment of a Rebellious Prelote—His Attemps ot Revolution—-Death of Don Eusebio Rodriguez, dic. * Congress met in extra session at San Jose de Costa Rica, on the Ist inst., and adjourned on the 16th. On the day of adjournment the convention or contract between Nica- ragua and Costa Rica on one hand, and Monsieur Felix M. Belly and Mesers, P.M. Millaud on the other, was rati- fiod by Congress with some slight modifications, and approved on the same day by President Moro ‘The only modification is the tenth article of the contract, which provides that Nicaragua and Costa Rica shall defend the Transit in case of invasion, while the amendment makes exception in case of invasion by filibuster. The following isa translation of the bill as it passed Congress -— 1. ‘The Interoceanie Convention celebrated between the caragna, and M, M. Felix and P. M. Millaud & Co., ot Paris, is approved of, understanding that the responsibility to ‘ticle 10th refers shall only when the erior Attack or invasion is legal. The JOth article referred to above stipulates that Nica- wa and Costa Rica shal) defend the transit in cage of invasion, The amendment is designed to save responsi- bility in case of filibuster aggression. 2. The present decree shall come into effect only when the Congress of the republic of Nicaragua shall have rati- fied the convention. ‘The national holidays of 21st, 22d and 23d alt. were cele- brated at apd near the capital with great pomp. On the 19th the regular troops and National Guards, numbering tome 6,600 men, escorted the President of the republic and several other dignitaries to the beantifal savanna of M Redenda, where they encamped for the night, Oa the 20th high mass was had, snd the chaplain of the army biessed the new flags presented to the different regiments, and prouounced a warlike sermon. The festivities closed with a sham battle and review of the troops by the Pro- aident. ‘The Bishop of Costa Rica, Don Anselmo Llorente, has been expelicd from the country by order of the President. It appears that on the 20th September, 1858, Congress passed a law imposing a monthly tax upon the corates of the different parishes for the support of the hospital and quarantine, most of whom complied with its ‘provisions. But the Bishop, regarding the law as an interference with the rights of the ehureh, took exceptions to it, and caused to be proclaimed in the public streets the excommunica- tion of the whole government and all the parties con- cerned in passing the law. Not satisfied with this, he had Um President's seat and canopy removed from the Cathe- dral, and threatened to have all the ¢! ‘This wos a little too much for President Mora; go, on the 2let of December, he issued a decree directing’ the expul- Sion of the Bishop from tho territorias of the republic. giving hie reverence twenty four hours to leave San Jose, under a military escort of four officers. The decree also prohibited tho priests and other charch dignitaries from obeying the orders of the Bishop. Under ail the circumstances the banishment of thiapre- late is, or ought to be, a matter of congratulation, for he was evgaged, as is well known here, in concocting schemes for the overthrow of the government. Some two years since his nephew, Sr. Francisco Iglesia, who agptred to the Presidency, was detected in plotting's revolution, and be and his adberents were banished. This so exasperated the Bishop that he has been a malcontent ever since, doingatl he could gecretiy to depose Praaident Mora. In his expulsion, therefore, the revolutioniste have met with ignal check and the evils of a civil war have been averted ‘The Presidential elaction takes piace next March. Don Eusebio Rodriguez, one of the most public spirited men of Costa Rica, died at San Jose on the 16th alt, To his liberality and netivity were due most of the pub- lic monuments, hospitals 5 of that capital. OUR SAN SALVADOR CORRESPONDENCE. La Uston, Jan, 4, 1869. Reported Lass of the Columbus—Government Majority in the Elections—The President on a Tmr—President Guardiola Declines to go to Guatemala—Cotton in San Salwador— Want of Slave Labor—The American Policy in Central America—Crops, de. ‘The Columbus sails from this port to-lay on her return trip to Panama, with a large freight of the products of this and other Central American States. But for the silly rumor that obtained here that he was lost on hor up trip, @ much larger quantity of produco would have been ship- ped by her, particularly indigo. She was eo far behind her time in arriving at this port, owing to the repairs she had to undergo at Panama, that a great deal of stuff has been sent overland to the Atlan®lc, many having believed that she was actually lost at cea. ‘The elections recently held in this State have resulted, aa was expectod, in the choice of candidates belonging 10 the government party, with a very few exceptions. ‘The President of the republic, who has been visiting one or two of the provinces, accompanied by a few mem- bere of his Cabinet, returned to the capital on the 20th ult. President Guardiola, of Honduras, has declined attend- ing the Congrems of Presidents at the city of Guatemala, aselguing af a reagon that the Congress of Honduras meets the Unit States 80 emphatically foreshadowed, has given great to the few Americans residing here. It is, of course, distasteful to the English, who, no doubt, will use it toour judice with the natives of the country, characterizing ‘ag a filibustering document. Had the government of the United States long ago enun- ciated and enforced this bold policy, and put down all fili- bustering expeditions against Nicaragua, our dilficulties with Centra! America would notonly bave beon atau end, but we would have possessed, asa nation, far greater advantages than the English in this country.’ As itis, I fear we have boen supplanted in all the Central American States by England, The coffee crop for the year just past is much larger than that of 1857. ‘The crop of indigo, in consequence of the drought, not- withstanding fifty per cont more land was pianted in 1858 than in 1867, will fall short of that of the previous year, There a about 1,500 ¢ercios remaining on hand undis- posed of. The State University has been re-established at the city of San Salvador, whence it was temporarily removed in consequence of the earthquake of 1954. OUR GUATEMALA CORRESPONDENCE. San Jos DE GuATEMALA, Dec. 31, 1858. Opening of Congress—Address of President Carrera—Les- sons Learned from the Filibusters—Necessity of Immigra- tion and Labor—Satisfactory Condition of the Treasury— Congress of Central American Presidents, dc., dc. The Congress of the republic convened at the city of Gustemala on 25th inst. Soon after an organization was effected the President sent in his message. The President congratulates himself on the opening of Congress under the beneficial influence of the profound peace and quiet reigning in the republic, and the friendly relations that exist with governments abroad and with the other Central American States. He then says:— Tcan assure this respectable Camara that at ao period since our independence hus there ‘a better feeling or a more cordial understanding than that which now exists, and which it in di carefully to maintain, between Guatemala and the otber Statesor Central America. The terrible lesson which Nicaragua received in the midst of her discords, and the con- flict which the Invasion of the filbusters in that State produced througbout Be cones and which in all parts gave rise to 60 many evils find disasters, has been, nevertheless, a salutary lesson, for itled us to discover the danger andthe abyss to which’ inexperience and discord led us, and has caused us to oven our eyes to true and well understood public Interests, abandoning the abstract questions—sterile and often puerile— that divided us, Atthe same time the evil passions engen- dered by civil wars being extinguished, it ap ears to be to-day the general feeling to malotain peace ‘at any coat; which on every side leaves abundance and prosperity, ana ‘which ap- pears the more amiable as the more odious ta the racatiection of the evils we have suffered. The respect for the legal autho- rity, which is the gafeguard and defence of society, and the earhest desire to see it firm and securs, is a natural sentiment at people who have experienced tbe fatal effects of an- chy, or the continual convulsions produced by frequent changes of government, We ought, therefore, to congratulate ourselves on the favorable condition in which we fied all the country. and (nank the hand of God, which, rf it has caused us to pass tbrough hard trials, permite us now to indulge fa a flat- tering bope for tuefuture. Another poinfof importance in the message is his re- cognition of the necessity of immigration and roads, which he refers to in the following words:— Our sparse population fs insuMictent to develope the riches which abound i pur extensive territory. Afer rutile efforts to bring settlers, we ought every day to convince ourselves more and more that a regular and prudent conduct which will well establish our credit and inspire confidence abroad, secu- ring at the same timo the happiness of our people, will be that which will increase and draw immigrants to a country which ts just beginning to be known and oilers grent natural advatages. ‘Our duty and our interest will be, therefore, to. draw them to us, to enicou! coming, protect their settlements among us,and, above all, to insure them the peaceful enjoyment of 4 er to seek, without which our fertile soil and delightful climate can’ offer no attractions. The free introduction of laborers capable of working tropical lands on the south coast is an importance, which necessity now forces the take lato consideration, “Government. bes or- point, and Cong a required, government will prepare the bill. Next tothe scarcity of labor, the greatest impediment to the spirit of ‘and industry is the want of easy means of communi ‘our country, shut up until these last few yearaback, and without any contact with the exterior, nad no Toads. The necessities of trailic, aided by the government, neve commenced to open roads between the inost Important points: but much remains to be done. Altnough the roads in the inte- rior have been much improved wi bin the last few yoxrs, they ‘Are not suilictent for the wanta of the population Government sceks the means to fi this important branch—1o ask the co-operation it may require of the ‘penre or concession been spared to secure our commu. nication by way of the Pacific with the other States aud with Papama, ibe central and most important point of contact with the new and old continents. ‘The Treasury, he says, is in a satisfactory condition, the general prosperity of the country having naturally con- tributed to the increase of the revenue, On the 20th November, the President issued a decree, fixing the rates at which foreign coin should be revaived in the republic:— American gold at par; Chile and New Granadian con- dors, $9 4; English sovercign, $4 7; half do., $2 334; French 20 franc pieces, $3 7; 10 francs, $1 734; 40 francs, French or Piedmontese, $7 6; German 10 guilders, $3 7 Spanish doubloons ot 106 reales velion, $5. Silver coin—Amcrican doliars, 1 dollar; half dollar; 4 reales; quarter do., 2 reales; dimes, % of areal; 14 dimes, not a legal tender but may be received; English shil- ling, 2 reales; sixpence, 1 real; threepence, 3¢ real; French Napoleon, 73g reales; Piedmontese 5 franc piece, 74:1 frane, 13g “real; halt franc, % real; five Spanish peseta, $1. ‘The Congress of the Presidents of the various Central American States, which was to have assembled at the capital of this republic in this month, has not yet taken place. The thing has probably been abandoned. NEWS FROM NEW GRANADA. Improvement In the Government Finances— A Forelgn Loan Taken—Agricultural Pros- pects of Forelgners—A Negro Revolt in the Pear! Islands—Preparations for the Political Contest—Naval Reports—Army Desertions— The United States Ship St. Marys Heard From—Excitement of the Colored Popula- Hon of the Isthmus, OUR PANAMA CORRESPONDENCE. Panama, Jan. 19, 1859. A New Loan to Pay State Debls—Foreign Agricul- turists at Work—Bark Cutting Suspended in the Mag- dalena— ro Know Nothings at San Miguel—A Revolution and its Causes—Sir Gore Ouseley Going to Punta Avenas—Relief yor the Frigate Decatur—Prepa- rations for the Presidential Contest—Arrival from Tahiti of the French Ba-Governor—An American in Trouble— Now Steamer from New York—The United States Ship St. Marys at Acapulco— Want of an Addition to Our Pavifie Squadron, de., de. Datos have been received here from Bogota to the 26th alt Important improvements have taken place in the finan- cial reeources of the republic, the government having suceeeded in obtaining loans from the merchants and other wealthy inbabitants of the city of Bogota at comparative- ly moderate rates of interest—say ten and 12 per cent per apnum. The sums thus obtained have been applied to the extinction of a considerable portion of the domestic debt, which weighed heavily on the treasury, and for grhich the exorbitant rates of 18 and 24 per cent per annum were paid. ° Itis ‘that the government has lately discharged a debt of $106,000, which it had contracted with Sir Nicho- las Daniels, of Rio Hacho, some seven years ago, at 18 per cent per annum, to secure the payment of which the Cus- tom House revenues of that port were hypothecated. A larger amount of interest has already been paid on this claim than the principal. ‘The government, ft 1s thought, will now be able to pay its empioyés their salaries in full—a circumstance for E dove ull, no ex- many years past unknown in the country. ‘The Agricuitoral interests of the country in some sec- tions have improved of late, large sums of money having been invested by English and German capitalists in the cultivation of tobacco, which is at present one of the most important articles of export, Jarge crops of which are an: ticipated. In the districts of country where the article is chiefly produced lands haye risen in value to a very great ex- tent, a, for instance, many tracts which, Mgt or ten years ago, could easily have been purchased for $500, Were sold in 1857 and 1858 at $30,000 to $35,000. Tnese results have mainly been produced by the spirit of com- petition. ‘The cutting of bark for exportation, which latte formed quite an item of enverprise in tho Magdalena district, has been entirely suspended. ‘The enlightened and liberal policy adopted by President Ospina wiil, it is thought, contribute to the formation of and prosperity throughout the country. On the 7th inst. tho alcade of the island of San Miguel, the principal of the group in the Pearl Archipetago, situ ated about sixty miles from Panama, put himsoif at the head of the native negroes to drive from the islands the forasteros, a they call the Panama and foreign traders and the officials recently appointed trom this place to proside over them. They barned two houses and forced the traders to leave the island. (As soon jy bs ped 3 city ng Governor at once organi astrong military force, and proceeded to ‘the scene of disorder. He left here on the 11th inst. at the head of some thirty troops and two officers of the regular army, twelve policemen and, about twenty voluntecrs. He reached ‘there on the , and arrested the alcalde and sdveral others, who bore A yong 4 parts in the riot; placed those who were expelled from the island in possession of their }, and ths succeeded in restoring order. ‘cause of the difficulty is, Ilearn, owing to the un. just exactions and immoral conduct of the newly ap- inted officials for the islands, which Is said to be repro Bensibie in tee extreme, ‘The Governor, it js to be hoped, will punish them ag well as the rioters. A disturbance occurred at Aspinwall on the 9th Inst. between some “liberty men” from the United Statow frigate Roanoke and the police forces of that place Fronine out of the ill treatment, it is sald, of one of the er while he was being taken to th station; the particulars of which will be furnished sume, by your Aspinwall correspondent. Exaggerated accounts of the affair were received horo which produced quite a sensation among tho natives, who talked of sending a volunteer force over to Aspinwall to capture the Roanoke, But they finally concluded that ‘“dis- cretion was the better ot valor,” and they accord- ingly, after a great deal of gascouade, allowed the thing a to pais off quietly. British corvette Vixen returned to this port from | R on the bth ivst., whither she had been to convey Sir {abi he Cees etna br the pats ag same r the purpose Oo i‘ & ‘and suite to Punta Arenas, ‘coate Rica. From be that be has gotton through with his ‘The next mail will probably bring ratification of his treaty with that The United States frigate Saranac sailed hence, in quest the sloop-of-war St. Marys, on the 8th inst. it is pre- sumed aho will have to proceed to Guaymas before falling with her. Orders have been sent to the United States sloop-of-war Decatur, at , to the effect that her officers and crew are to be relieved at this when her cruise is up, which will be in March or’April. This will not only be gratifying news to those on board that vessol, but to their friends at e. As the time is approaching when the Presidential elec- tion 1s to take place throughout the Granadian confedera- | tion, the rival parties have commenced bringing Cogward their candidates. The democratic journals of this place, the Pueblo and Democracia, have suggested the name of | Dou Juste Arosemena as the detnocratic candidate for President. Don Manuel Murillo, Governor of the State of Santander, and who opposed Ospina, the present Execu- | tive of the confederation, is also spoken of in connection with the office, It is thought that the democratic party will nominate either Arosemena or Murillo. Ospina will probably be the candidate of the conservatives. The , election takes place in July. Tho sum of seven thousand dollars has lately been re- ceived here by the Intendente General on account of .the federal goverument—five thousand dollars of which was from the Panama Railroad Company in New York and the residue from Carthagena. The whol» amount having been applied by the Tntendente towards the payment of the salaries of the federal employés at this piace-—such as troops, &c.—considerable dissatisfaction has been ex pressed by a great many Isthmians, who content that the money ought to have went into the coffers of the State, Among the arrivals here by the English steamor from the South was Rear Admiral Count Ponget, ex-Governor of ‘Vahiti, who left for Europe on the 8th inst, While herobe , wo Kome particulars of the conduct of the late Und Klates Cousuf at the island, Mr. Owner, which fully corro- borate the charges made against that persomby the New York papers some time since, Count P. says tuat the arrival of the now Consul, Mr. V. Turner, was hailed | with joy by all the white inhabitants of Tahiti, especially | the few Americans residing there. | During his administration of two years the Count in- duced the natives to cultivate the sugar cane, which, @¢ is , known, grows spontaneously on the, islaud and the result” has been most gratifying. The cro of 1858 for exporta- tion—being the frst—ho confidently asserta will exceod four thousand quintals of sugar. Coffee and cotton are also cultivated to a considerable extent on the island. It has recently been ascertained at Bogota that # person by the name of Pedro Cortez is the party who some time ago forged a treasury bond for a large amount, and orders have been issued for his arrest. Some twelve or fifteen more dezertions from the garrison at this place have ocourred since my last. ‘The Judge for the district of Fubroga, in this State, has ordered Dr. J. King Merritt, an American citizen, to ap- pear before him as a witness, to answer certain interroga- tories concerning the killing of two desperados, about a year ago, at a village near the gold mine of which Dr. M. is superintendent. Ashort time after the affair occurred the authorities of the district of Fubrega, instigated by some evil disposed persons, sought to implicate Dr. M. in the murder of the two men, but information coming to bis knowledge from asource entitled to credit that injustice would be done him if be appeared there, he laid his case bofore the Go- vernor of the State, through the proper medium, soliciting aan investigation, but asking that the cause might be tried | here. ‘The Legislature a short time afterwards passed a law, which was approved by the Governor, aliowiag a change of venue in cases of this kind, which entitled Dr. M. toa hearing before the courts of Panama. ‘The object in ordering him at this late day to appear be- fore the Judge of Fabrega, ostensibly us a witness, is ob- viously to entice him within the jurisdiction of that court, in order to carry out the original intention of his perse- cutors. Capt. J. M. Dow, late commander of the steamor Co- lumbus, goes to New York on the Iilinois, to bring out to the Pacific the new steamer which the Panam’ Railroad Company are now building for the Central American trade. Messrs. Whitewright and Fellows, two of the directors of the Panama Railroad Company, havo been on a short | visit to this isthmus, looking, perhaps, to the affairs of the road. On the 16th inst., accompanied by the chief engineer, the commercial agent, and one or two others, they visited the islands in the bay. The company’s now steam tug conveyed the party to and from the islands. ‘The steamship Columbus sailed hence for Central Ameri- can ports on the 17th inst., with a heavy freight. N. G. Blakey, Esq., of Missouri, recently appointed United States Consul to Talcahvano, Chile, is at present in Panama. He will proceed in the Eoglish ‘steamer, on the 80th inst., to his destination. The coal sent here some time ago for the use of the steamship Hermann—282 tons—has been advertised for some two weeks past to be sold at auction on the 18th inst.; but on the day of sale it was withdrawn, on the Fee that, in order to ‘make the sale legal, an order would ve to issue from the Commercial Court. +. There are now no American vessels of war in the har- bor of Panama. The St. Marys will probably be here during next month, unJess she has been ordered elsewhere meantime. The fact is there ate too few ships belonging to the Pacific squadron, Oar interests on this coast are becoming so important that we should have a naval! force sufficiently large to protect them. I understand that flag otticer J. C. Commander-in-Chief of the Pacific squadron, is besought by parties residing at all points on the coast to send them ships of war; but it is impossible for him to comply with their wishes. He has not the ves- sels at his disposal to send. Panama is perfectly healthy at present, no now cascs of sickness having occurred here since my last. On the 18th inst. a negro man named Brigido Martinez, residing outside the city walls, was shot by another native of Panama, named Pedro B, de Ycaza, a clerk at the Bri- tish Consulate. The wounded man is under surgical treatment. The affair has produced no little excitement, and the general impression is that a row between the white and black natives—more serious than any we have had here yet—will grow out of it, particularly if the man dies. No efforts have been made yet by the authorities to arrest Ycaza, which excites the negroes still more against the white natives. She reports the arrival at Acapulco of the U. 8. sloop-of- war St. Mary’s, awaiting the appearance of the Saranac be- fore proceeding to Panama, Captain Davie, commanding officer of the St. Marys succeeded in having the Americans who were imprison at Guaymas released. Tn consequence of the disturbed state of the country at Manzanilla, the specie usually shipped at this port is sent now from the interior to Acapulco for exportation. T learn from a reliable source that many of the passen- gers who had arrived at Acapulco via Tehuantepec com. plained of a want of accommodations on that route. Lieutenant Wyman, executive officer of the St. Marys, came passenger in the Golden Age, and goes home in the Minois. NEWS FROM THE SOUTH PACIFIC, Approach of a Revolution in Chile—Martial Law, Personal Arrests and Newspaper Sap- pression—French and English War Ships at Valparatso=Trade Emeutes at Lima and Caliano—Opposition to the Landing of Wood- en Houses from the United States—The Blockade of Ecuador—Trade and Harvest Reports, &c. The steamship Cloda, from Valparaiso and intermedi- ate ports, arrived at Panama on the 6th inst., with dates from the former place to the 16th, Callao the 27th, Paita the 30th of December, and Guayaquil the 2d inst. ‘The Cloda brought thirty passengers, 113 packages mer- chaniise, and $203,000 in specie, for England. By this arrival we have highly important news from Chile and Peru, full particulars of which are given below, by our special correspondents. PERU. OUR CALLAO CORRESPONDENCE. Caxtao, Dec. 27, 1858. Doings in Congress Quicksilver Speculation and Govern ment Trade—An Oulbreak at Callao Caused by Native Tradermen—Opposition to the Landing of American Shantics—Bloodshed and Lows of Life—President Cas tila on the Ground—The Legislature in Treaty with the Ricters—Propositions from the Insurgents—The War with Ecuador, dc. Congress is still in session at Lima, but is principally engaged in discussing questions purely of a local charac- tor. On the 18th instant @ bill passed both branches au- thorizing the Executive to purchase annually six thousand quintals of quicksilver in the markets of California or Spain, which when procured is to be sold by the govern- ment to consumers at cost price. Congress was induced to take this step in consequence of exorbitant prices being demanded for the article by a few speculators who control the market. Since the sailing of the last steamer this place and Lima have been the ecene of a most disgraceful riot, resulting ‘n bloodshed and loss of life. The outbreak commenced at this place, the occasion being the landing, or rather ap attempt to land, a lot of wooden houses recently argived from the United States in the ship Lamnagier, which had been ordered by the Chorillas Railroad oases As soon ag the fact had become known that the vessel had brought to this port a lot of houses for the uso of the railroad com} the carpenters, builders, &c., held a meeting, and resolved that the cargo should not be landed, Pees OF on the 16th inet.,as @ launch from the ship loaded with the frame houses, put up in sections, came alongside the mole, ® mob collected, and compelled tho doatmen to take the Jaunch away without unloading it, The mob numbered about 600—moat of whom wore boys. The ringleaders had the audacity to petition the President of the nation to interpose and prevent the landing of the cargo, to which, of course, no attention was paid, This exasperated the mobocrats still moro, and they threatened to carry their unlawfal purpore at ail hazards, Things remained comparatively quict, however, until the 21st, when a launch load of the proscribed property was landed atthe mole. The mob quickly collected on tho spot, smd prevented the boatmen from transferring tho stuff to the ‘wagons sent there to receive and carry it to the railroad depot. Just at this time the authorition interposed, and arrested one of the ringleaders; but while the polico wero conveying him to prison, the mob made a rush upon them and released their comrade. They then returned to the mole and succeeded in destroying the property before the military or police force understood ta bp on thotr way there arrived. They had scorcely performed the work of destruction when the Prefect arrived upon the ground, a ‘he head of two hundred troops, with which force be B00n dispersed the rioters, and arrested for the second time the leader of the gang. The mob, being driven From the wall, next appeared upon.the public aquare, where they forcibly entered a yunemith’s shop and supplied themselves with arma, aud, ut for the timely arrival of some troops, they would have completely sacked the establishment. The mob were fired upon and one of their number was killed, They returned tho fire, wounding two or three of the soldiers. Tue mob requested the withdrawal of the troops, promising that they would do likewise, The troops were accordingly withdrawn; but the mob, instead of retiring, proceeded te the residence of the Prefect, Gontathe tb arrest of the officer in command of the troops which fired upoa and ioe saleeas of eee comrate who was under arrest. pon the Preject’s refusing to accede to their demam they commenced agsauiting his house with stones. Monet ing with little or no resistance, they proceeded towarda the telegraph office, near the railroad depot, cut the wirea avd went to work teariag up the railroad track. A traim arriving about this tine Lima, the mob assaulted with guns, stones, &. The conductor finding that shots wi fired at tho train, stopped it, when the mob orl tn the cars, bat finding nothing of value—their object being that of plunder—they retired for the night, ag was aup- During the night Prosident Castilla arrived with a smal detachment of troops from Tima. tinels “0 ata. Hotes Sirgaghoge the city and martial law 43 pro claimed. On the morning of the 22d everything ppenred quiet, and the more peacoable citizens, fev.ing savsiied thas there would be no further disturbance, went ag usaal about their business. The day had not far advanced, how- ever, when considerable commotion was seen in the streets —people running to and fro—troops moving with sous rapidity. It toon appeared that the mob, instead of hay- ing retired to their houses the previous night, as was aup- posed, had quiet)y seized several pieces of artillery from the government foundry, and in addition had received a good supply of small arms {rom Lima, With these pieces of artillery and musketry they selected’ a strong position - and declared their purpose to Hre upon the train of cars which was to transport that morning a portion of the wooden houses to Lima, The national troops, commanded by tho President, quickly assembled, and took position hard by. A collision seemed inevitable, but the Presidemt acted with a great deal of forbearance. Instead of order- ing the troops to fire upon the rioters, as was expocted, heprdered them to disperse, which was met with insult and deflance. Meanwhile firing was kept up botwoea some rambling troops and the insurgents, and several persons on both sides were killed, while others were wounded.» @@tray shot.killed an officer of the rogular army, which induced President Castilla to withdraw his forces.and station them.at the mole to cover the landing of several launch loads ofthe houses. By this means six or cight car loads were sent forward to Lima, Arriving at Lima the train was attacked, set tire toand burned up by avotber set of rioters, acting in concert with those at this place, The saiti were called out, but failed to die- perse thermob ing was kept up between them until a late hour at wight, by which a number were killed and wounded, The next day (23d), Congress being in @ proposition was mado aud carried tor the appoint. ment of a committee to treat with the rioters. This concession on the part of Congress highly elated the moboctate, who were most exacting in their de- mands. They ’audaciously demanded that the officer who commanded the governinent troops at tule plage when they were fired upon should be dismissed the ser- vice and punished; that no more of the bouses shall be discharged trom the ship Lamnagier; that all their com- rades under arreat be set at liberty; that the troops be withdrawn; and, iastly, that a protective duty be imposed Upon ail manufactured goods that contlct with the mechanical products of the country. Strange to say, Congress gravely cousidered these pro- positions, and a bill has already been introducet, which will probably pass, providing for an increased duty of 20 per cent over and above the present tariff upon manutac- tured articles, and for the admission of raw material duty free, I would vot be surprised if President Castilla sets his face sgainst this proposed change of the tariff, and if he does it will fail. ‘As T write Lima is under martial Jaw, and, although there haye been no further outbreaks within the past few days, the indications are that we will have # general up- rising of the lower classes at no distuat day, aud it ig very evident that they have no good feeling towards the exist- ing government. Although the difllculty in this place originated with the builders and carpenters, nearly ai! the lower classes, both here and at Lima, espoused their cause and arrayed themselves against the povernment. A great many arrests have been made here and at Li- mer ape, astropg patrol is kept up in both places might anc I bave nothing pew to report respecting the diffcalty between this government aud that of Ecuador. Nothing hes has been cone than to blockade the ports of the tter. CHILE. OUR VALPARAISO CORRESPONDENOR. Varparaiso, Dec. 16, 1868, Government Dread of Revolution— Wholesale Arrests and Newspaper Suppression—Martial Law in the Provinces— Congressional Opposition to the Government—Names of the State Prisoners—French and British Ships in Port— The United States Sloop Cyane Looked for—Hopes of Steam Communication with New York—Trade Very Dull—No Ship Arrivals from the United States. The whole of Chile is at length under the bligbting influ- ence of despotism. This state of things was not unlooked fer, as the despotic strides which the present adminiatra- tion has been making for some time past clearly indicates such a denouement. Wholesale arrests of prominent individuals have been made, The Mercurio, the leading commercial paper of this city, has been suppressed by order of government, and the provinces of Valparaiso, Santiago and Aconcagua have been placed under martial law for ninety days, at the end of which time, unless the people tamely submit to the despotic rule of ,President Montt, measures still more tyrannical no doubt will be resorted to. ‘The immediate cause for the exercise of this arbitrary power on the part of the Executive was the assembling of the opposition members of Congress and others hostile to the present administration at Santiago on the 13th inst, Soon after the organization of the mecting the goverament despatched an armed force to the place, broke up the meeting and arrested one hundred and fity of the most nae hundred and thirty of whom were short- ly after released upon payment of a fine of fitty doliars ae remaining twenty will be tried and probably ished. On the 14th a decree was issued simultaneously at Santi- ago and in this city by public proclamation, declaring the winces above referred to under martial law. Soon after followed the suspension of the Mercurio, and the follow! named journals published at Santiago:—La A Correo Literario Ci atid Asambleo Constiti The suspension of these newspapers and tho other high- handed acts of President Montt and his Cabinet have pro- duced great excitement here and elsewhere throughout the republic, and alarmed the people for the safety of their liberties. It Indigent natural that they should be alarmed, in view of these outrages; for, if President Monte 4 permitted to goon in this way, thero is no telling what the result may be. In a moment when they least suspect he may perform another coup d'état, and actually proclaim Chile a despotism. This state of things cannot last long. A_reyo- Jution is inevitable. The people must soon rise and drive from power the present corrupt dynasty. There is no lack of leaders, but they want arms. But this deficiency may be supplied by inducing the government troops to join them—a consummation devoutly to be wished—and which is by no means improbable. The following are the names of the parties still undor arrest, among whom are three members of Congress:— Manuel Antonio Matta, Souper, ‘Anjel Custodio Gallo, Jnan Doren, Vicuna Mackenna, Jose Doren, Guillermo Matta, Pedro Doren, Isidoro Errazuriz, Gregorio Doren, Jose A. Torres, Rafael Doren, Jose del Carman Estuardo, Marote, Santiago Ortuzar, Santiago Riesco, Jose del Carmen Troncoso, Ramon veda, the Commercio, which is generally suj the merchants; ‘out tls a poor csnoera, “aot ab all adapted to the wants ‘of the mercantile community, fed Saat of the Mercurio have issued a card noti- fying public that they have petitioned government to corm oe Ga oer poten their , and © ing the ir petition will be granted. Mr. famuel F. Haviland, a highly respectable and wealthy American reeident of Santiago, died a few days ago at his residence in that place. ‘The French Admiral, with three other ships, and the British ship Hayanna are in port. The American sloop Cyanne, although fully due here, mtue Paoite Sisam Navigation Com: lav’ m Company’s new steamer Callao arrived at this port on the 14th mstant, in forty- four days from Liverpool, including ten days stoppage at Reo Janeiro, She sailed’ from Liverpool! on the 30th of Tr. ‘The announcement here that a weekly line of steamers between New York and Aspinwall was in coutempiation, has given gencral satisfaction among our American mer- chants, who have so long been subjected to the very great inconvenience of baving their corres; for the United States detained two weeks at Panama, in consequence of the arrival there of tho English steamers from this port on the 6th and 2st of each month, some two or three days after the departure of the Amorican Pave (0 repeet We old story of th pres. Ave LO Te} 1@ 01d Btor} ¢ continued de Pho diets bare been tat ‘ fo steps have been taken as yet to rebuild the burnt district of this city, except by John Brown, an enterpris- ‘ng American resident. The property holders who sua- sainod losses by the fire of November 13 have pretty gene- bw i reimbursed by the resident agents of the va- insurance compauies, but the} posed rebuild, at least for ihe prokent’ iit vid ‘The news from the agricultural and mining districus continues favorable, as regards a plentiful supply. Bar copper is reported dull at $1. There have been no arrivais of American vessels at this port during the last fortnight. MARKETS. Vatranatso, Dec. 16.—We note an increased dullness in the last fortnight, owing to the continued paralization of the European markets as also those of the United States feyortian of or oh gets articles of the and export, Notw/ Dusiness along the coast has boca ay trie weit exports almost nothing has beon done. Rice. holds firm at former prices of 6 d. to 64.25. Stock im hand 3s exticiontiy Jarge, independent of such shipments ag may arrive ar—A shipment cases arrived irom Savana, nod which ay rappers’, o ‘de damaged, turned out d. B00, nod, and was aold bond, OF refined there is but litle, and transactions have been effected at 6 d. 2c, and 6d. 600,, duty freo, Of brown Pornambuco thers ia RUN a parcel of From 18,000 to 20,000 arrobas, which hag not as yot realized, the hold- ora of athich nak 16 13. bond. Various tots have lately: changed handa at from 15 to 16 re, bond, _ Ooifeo—Lit sought after, although the atock is small; 150 arrived and changed hands at 16 d., and fromm 1) et wo 4% Of Primayora aro in treaty dt $}qd. 09.0, American i |