Til PI FRENCH IN MBXTCO. ROUT OF THE MEXICAN ARMY. PROPOSALS FOR AMERICAN INTERVENTION

Otago Witness, Issue 567, 11 October 1862, Page 2

Til PI FRENCH IN MBXTCO. ROUT OF THE MEXICAN ARMY. PROPOSALS FOR AMERICAN INTERVENTION

(From the Correspondent of the AUa California.) City of Mexico, June 21. For nearly a month communication with Acapulco ha-3 been interrupted, and even the Cohrao and iriteviov niiii'.a havo beeu robbed by pane's of outlaws, ns all the available taoops are concentrated at the seat of war — to wit, in the neighbourhood of Orizaba,

General Ognzon, with a body of 7,000 men and some minor divisions from Mareln. and Oajaca, has joinel General Zaragosa's army, ■which numbered on th« 14th msb about 16.000 men, making him confident of farther surcoss. Nevertheless, he acted with priulenco and loyalty when he addressed General Laurenopz, permitting him to surrender on any torraa he pleased, provHe 1 he would leave the country. But the French general would not, of course, _ listen to such a proposition, _ bad as was hi* situation — short o r provisions and entirely isolnted in a foreign country He referred Zaragosa to M. Dubois de Saligny, the French commissioner, who, together with Almonte, aete I as dictators and lusads of an inva-sionary ntirl independent Government. The consequence waa, that on the 14th a general a'tnclc on the French nosition was resolved on ; but General Ortega liavinp been prevented from taking the position designated to him — the Cerro de Borres^o, a small elevation which commands the northern sate of Orizabx — as the said 'n'l coultl only be oeouplf d the clay after, where the French quietly permitted the Mexicans to erect their battery of twenty-two guns, whon, early on the morning of the 16th, they surprised this division, whHi occupied the elevation, and/ by thus breaking their centre, routed the whole Mexican army with terrible slaughter. Several generals had but a narrow escape, and if the French had had any cavalry, the result would have been still more disastrous. " However, the left and right wings had time to retire iii a'ood order, and as the famous Cumhres de Alzunzingo were but a few miles on, they made good their retreat ; but thonc'li reduced from an offensive to a defensive warfare, the Mexican army will have nothing more to few f«>r the present. The guerrillas on the Vcra Oruz side of Orizaban, however, have not let their time. They havo seized every convoy with stores, and burnt numbers of way g^ns, with provisions, of which the French were in great need. The troops at Orizaba are on half rations, and the poor citiz* ns are in a starving condition, as eatables have advanced to famine prices. General Almonte, who styles himself " Provisional PresHenr," has appointed a Ministry of very doubtful characters, nnd Ins Secretary of the Treasury lias issued a decree creating 5(10,000 dollars worth of paper currency, from twelve and a half cents to five dollars a piece, wliifh must be taken, under the heciviest pennlties. while a forced loan of 50,000 dollars must be paid, in cash or me-cliandise. All the traders at Orizaba, Cordova, and Vera Cruz have shut up shop in consequence. President Juarez appears not to be disconcerted by the late mishap, and every man capable of carrying arms is pressed into the service, to defend the country. Trade is paralysed, most of the shops are closed, and everything looks dull. The following ig extracted from a private letter :— "Mexico, '22nd June, 1862."— My last to you was under date of 2*2: id May. Since then maLtora have become horribly ' mixed up' in this counhy. This so-called friendly intervention of the French has caused the most intense suffering, and commerce is at a standstill. No gods have reached the capital from V.era Cruz for over nine inonihs, and our city is fast becoming destitute of *he actual necassaries of life. The reviews 1 soud you will givo you a clearer insight in regard to the marine* 1 the Fjench have managed' their invasion. This moruing we have reports that the Mexican troops made an attack upon Orizaba, but were repulsed with heavy losses. Since tlie' J6th .instant, no news from the seat, of war, or the army, has beeu published. As I . before stated., our situation is wowing daily. worse and worae ,- and, to the eternal shame of therjFrench' Government be it said, they are united- wittftpitl protecting the. reactionary or priest party. Should they succeed .eventually in establishing a monarchy here, I shall most certainly close up my -business and • leave." ■ ' . • •