SOUTH AMERICA.

Daily Southern Cross, Volume XXII, Issue 2810, 28 July 1866, Page 6

SOUTH AMERICA.

By way of Panama we have later news from South. America. We quote from the Panama Star and Herald: —

OHILT. By the arrival of the Pacific Steam Navigation Company's steamer 'Inca,' on the 20th ultimo, we were more than glad to learn of the withdrawal of the Spanish squadron from Peruvian waters. As the destination of the fleet and future proceedings of the enemy are yet matters of conjecture, the war still continues to absorb public attention, and in the event of hostilities being prolonged we-are preparing to carry out such measures as will not only defend the honour of our country and maintain the justice of our cause, but award Spain the punishment her high-handed and unjust policy J so well merits. In a few months more our principal coast towns will be in a good state of defence, and by that time we hope to also add several firstclass war ships to the allied fleet, so that, come wha^ may of the negotiations now pending between the Cabinets of Washington and Madrid, we will shortly be in the proud position of terminating the war. Admiral M. Blanco Encolada has been appointed to the command of the allied squadron. Although advanced iv years, he is a brave officer, an able and experienced commander, having destroyed part of the Sp»nish navy in the war of independence. He has proceeded to the Archipelago of Chiloe with the corvette ' Union' to wait the arrival of the ' Huasvcar' and 'Independencia.' These iron-clads left Maldonado, a port of Uruguay, on the 7th May, having captured two Spanish merchantmen laden with wine and sugar. On the 28th of last month the Government issues 9, decree, expelling from the Chilian territory all Spanish residents. Those who should obtain naturalization as Chilian citizens within the given time of thirty days, are alone excepted from the operation of thitlavr. The National Bank has offered to lend the Govern* ment six millions of dollars, stipulating that the funds of the loan should be deposited in the Bank. It is understood that the loan will be accepted. On the Ist instant, Congress opened its seasioai. The President of the Bepublic delivered the customary mesnage, spoke especially upon the war, its origin, &c, and the firm determination of the Government to jirosecute it with all the vigour »nd energy characteristic of the country. r

Owing to tbe continued pressure of the commercial community, the Minister of Finance has at length agreed to return the duties on such goods as the merchants removed from the bonded warehouses during the bombardment of Valparaiso, in the event of such goods being re-shipped within six months.

PERU. The news from Peru is not of importance. A commission lias been sent from Peru by the present steamer to Europe to make arrangements for establishing a telegraph line across Kcuador, Peru, Bolivia, and Chili. Callao continues to be strongly fortified against a return of the Spanish forces. No late intelligence had reached Peru of the ironclads 'Huascar' and 'Independencia.' The sum of 300,000J0U. has been ordered to be coined in five-cent pieces. The amount of Bolivian coin now in circulation is very small, and will iv a short time entirely dissappear. Tenders are received to establish a new road from Linaa to Callao, which -will be made by Me Adam's system, or any other which may improve our old road. The rail-road monopoly is a real misfortune for theie towns, and we wish it to end so that a profitable competence may take place. Actually the government is carrying on a law suit against the rail-road company, which will soon come to a close. The municipality of Lima has beeu authorised by the Government to contract a loan for the purpose of building a theatre which may correspond with the high utate of civilization of the country. The Government of Ecuador has issued a decree condemning to death all those who directly or indirectly may help or give any support to the Spaniards. — Great excitement has prevailed through the country during the whole of the month of May. The Spanish fleet, after their defeat in Callao, was evpected every moment in Guayaquil, where the Equatorians were prepared to give them a warm reception. The banking house of Luzarrago and others did not make any transactions, and the Custom, house duties assigned to the English bondholders and Mr. Mackintosh amounted to nothing, as the vessels sunk in the Guayaquil river forbid the entrance to the port. The non-payment of the first instalment of the debt due by Ecuador to the United States in November, 1862, is likely to lead to a position demand on the part of the latter Government, and with that view the subject has recently been brought before Congress by the President, "We learn that the IT. S. steamship ' Mohongo,' Commander Nicholson, is at present at Guayaquil, for the purpose of enforcing the demand.