THE WAR IN BRAZIL. (From the Daily News.)

Otago Witness, Issue 864, 20 June 1868, Page 9

THE WAR IN BRAZIL. (From the Daily News.)

In the interests of humanity a3 also of commerce, and of the large class of persons who have invested their money in the loans, railways, banks, and industrial undertakings — all now at frightful discount — of Brazil, the Argentine Confederation, and Uruguay, we cannot but express concurrency in the opinion now generally expressed that a time has come when the Queen's Government might proffer — we would add, if possible, in conjunction with the the United States and France — mediation to restore peace in the Plate. Since the United States Government made a similar offer upwards of twelve months ago, the war has affected most seriously the financial and political condition of Brazil, has led to a suspension of cash payments in Uruguay, and threatens, in the face of the coming Presidential election, to shake the Argentine Confederation to pieces. It is thus possible that the Allies may now have somewhat mitigated their policy as to Paraguay, and that Lopez may consent to lower terms which his 1 neighbors maydeem consistent with the safety of their territories, and sufficient for the free navigation of the rivers.

Lord Stanley personally occupies in this question a most advantageous position for such an object. He is not only free from all antecedent embarrassments with Brazil, but well esteemed in that empire for his friendly disposition ; neither in the Plate has he any old associations to diminish his present usefulness ; and in the just grounds of complaint he has against Lopez for his treatment of English subjects, he may excite apprehensions in the mind of that personage which may produce pacific tendencies, especially as his mediator and representative could, hardly propose the deposition of Lopez as a condition of peace.

If mediation is to be offered, there are super- abund ant reasons why there should be no possible delay in offering it. The losses of British subjects having business or financial relations with Brazil, in the presence of a fall in the exchange of more than forty per cent., are of course ruinous, and there is no security, except peace, against a further decline. The Brazilian Government itself has, of course, in its remittances to pay its large obligations to Europe, to undergo similar losses ; and, though there is every reason to place reliance on its honourable intentions, this fearfully augmenting pressure of its foreign debt, under such a state of the exchanges, is full of apprehension, if not of danger." And so in a lesser degree of it with the Argentine finances and commerce. Trade with both states — the larp,e English investments in their funds and territories in both — are jeopardised by this war. In the year just past the value of our cotton goods exported to Brazil fell off about one million sterling; to Uruguay, by one hundred thousand sterling ; and to the Argentine Confederation in a somewhat smaller proportion. In January last the diminution was still going* on, being to Brazil in that month L 130,00 0; to Uruguay, L 23,000 ; and to the Argentine Confederation upwards of L 150,000. And so if this war be prolonged, this falling off will go on in an increasing ratio as their exchanges fall. The loans of Brazil raised in London exceed L 14,000,000 in amount ; those of the Argentine Confederation reach L 1,500,000 ; that of Uruguay, we believe, is at least LI, 000,000. Paraguay, too, is not without liabilities to private persons here. The guaranteed railway capital of Brazil in England is, moreover, upwards of L 5,000,000, and that of Buenos Ayres about LI, 000,000. In both Status there are English banking, English gas companies, and in Brazil English mining companies, all suffering from this war.