The Sun.
London, England, 1862-06-20 00:00:00

BUENOS AYRES.

The advices from Buenos Ayres by the present
mail state that on the Ist of May the new provin-
cial Legislature was opened in the usual manner by
a message from the Government which possessed
more than ordinary interest. The country was
shown to be in a prosperous condition, and it was
announced that the installation of the national Con-
gress would take place on the 25th of May. The
French claims have been arranged, and the pay-
ment will be made in public funds bearing interest
at 6 per cent. per annum. Sentence of death has
been pronounced against Rosas. £31,500 exists in
the bank for the purpose of erecting schools, and a
sum of £9,300 for their maintenance. The sale and
renting of public lands has produced £62,000 during
the past year. A new contract has been made with
Mr. Croskey, on the part of a London company,
for the purpose of constructing the San Fernando
Railway, the works of which are already far ad-
vanced, and are now expected to be in all respects
satisfactorily carried out. Two proposals have been
made to the Government for the introduction of
horse railways in the city. The problem of the
existence of Artesian waters has been solved, and
works on a large scale have been undertaken with
the view of utilising this advantage. The Custom-
house produced in 1861, £500,000, against £600,000
in 1860. The Three per Cent. Deferred English
Debt stands at £1,300,000, and the Six per Cent.
Debt on the 31st of December was £965,000. The
Internal Debt is as follows :

• Paper Dollars,
Old Six per Cent. Funded Debt
Four per Cent. Funded Debt
New Six per Cent Funded. Debt
New Six per Cent. Funded Debt 50,000,000

104,262,353
equal at the present exchange to about £900,000.
The amount of paper money in circulation consists
of--

ssues previous to 1859
„ December, 1859, without sinking

fund
„ July and October, 1859, with sink-
ing fund
June and September, 1861, with
sinking fund .. 100,000,000

Total 395,247,656
Deduct amount burnt as sinking fund 22,090,000

In circulation
From this 10 per cent. may safely be deducted as
lost in circulation. The sinking fund is provided
out of extra duties, which at present produce
2,000,000 paper dollars per month. The Govern-
ment are of opinion that, with an inconvertible
paper currency, there is no safe basis possible for
financial operations, either public or private. An-
other year, dating from March the Ist, has been
accorded for the commencement of the works of
the Ensenada Railway. The Southern Railway has
not yet passed the Senate. The Western line is to
be continued 40 miles. The value of the importa-
tions for 1861 was £2,000,000, and of the exporta-
tions £1,200,000. The present advices add that
Mr. Thornton has returned to Buenos Ayres from
Paraguay, where he has satisfactorily settled all
questions in dispute between that country and
England. A decree has been issued by the Presi-
dent ordering the planting of cotton in Paraguay,
for which it is eminently suited. The railway is
being worked, 12 miles are open, and 12 more are
nearly ready. The Government intend running
four steamers per month between Montevideo and
Assumption, touching at Buonos Ayres and inter-
mediate ports. Little rain has fallen, and grass for
cattle is scarce ; the sheep do not suffer so much.
The drought has been general this year and has
caused heavy loseca. The assumption of the na-
tional authority by General Mitre had elicited the
following reply to his note of communication from
the British Minister :

"Buenos Ayres, May 1, 1862.

" The undersigned British Minister Plenipotentiary,
having recently returned from Asuncion, has had the
honour to receive a note, dated the 12th of April, from his
Excellency Dr. Eduardo Costa, Minister of Government of
the province of Buenos Ayres, adjoining copy of a decree,
in virtue of which his Excellency the Governor of the pro-
vince, accepting the powers conferred on him by the Argen-
tine Provinces, has assumed the representation of the re-
public in its foreign relations,under the terms of the above-
mentioned decree.
" The undersigned will not fail to communicate to his
Government the contents of said note and subjoined decree,
and in the meantime requests his Excellency Senor Costa
to present to the Governor of Buenos Ayres his cordial and
sincere congratulations for the honour conferred on him by
the different provinces of the Argentine Confederation, and
his satisfaction for the security that in the exercise of the
powers which have been conferred on him, and especially
with foreign Powers, his Excellency will always be guided
by the same liberal
Principles which have marked the pro-
ceedings of the Buenos Ayres Government.
In treating with his Excellency Dr. Costa about mat-
ters entrusted to his care it will afford the greatest pleasure
to the undersigned) and he can assure his guellenq that