The Sun.
London, England, 1865-08-19 00:00:00

Aoc-t.
... 852 50
... 1075

Orleans
Northern
Lyons and Mediterranean...,
Southern
'Western
Eastern
Sardinian .
Austrian
Lombard
North of Spain
Saragossa —
Ditto to Barcelona
Roman

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-- - ... 565 -

... 527 50

... 270 -
... 407 50

- - ... 486 25
- - ... 233 75
... 320 -

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THE WAR IN SOUTH AMERICA.

RIO DE JANEIRO, JULY 24.

The Emperor left this city on the 10th for Rio
Grande, and arrived at St. Catherine on the 12th,
where his Majesty was delayed two days owing to
stress of weather. A heavy pamper°, which began
on the night of his arrival, continued to blow till the
14th, when the weather clearing up his Majesty
continued the voyage without landing, and arrived
at Rio Grande on the 16th.
Government have resolved on taking charge alto-
gether of the D. Pedro 11. Railway, receiving the
shares of the few remaining shareholders at par, and
paying them in Government 6 per Cent. Stock, also
at par.
The Paraguayans are in possession of S. Borja,
which place they appear to be fortifying, A column
of 11,000 men is on the march southward, supposed
to be going to attack Itagin, in front of which town,
and on the other bank of the Uruguay, they have
6,000 men. On the 26th, an engagement took
place, near S. Borja, between the vanguard of the
Paraguayan army and a brigade under the Brazilian
Colonel Fernandes, which had received reinforce-
ments, and compelled the Paraguayans to fall back,
leaving 700 men on the field, besides 3,000 horses,
mostly saddled, some arms and baggage, and two
flags. The official report states that the Brazilians
had 151 men killed and wounded.

General Canabarro, and Baron Jacuhy appear at
last to be on the march ; the forces of the former
are now estimated at 12,000 men, mostly cavalry ;
and of the latter at 2,600 men, and will arrest the
progress of the invaders. The news, however, from
Rio Grande is so confused, and in many instances
so contradictory, that it is impossible to give the
exact position of the forces and their numbers.

On the Ist a terrible gale did a great deal of
damage to the shipping in the port of Rio Grande,
and several lives were lost.

From Buenos Ayres we have dates to the 14th,
and from Montevideo to the 15th. The most im-
portant is the disappearance of Urquiza's army,
which he disbanded. The fact has been severely
commented on, and the general has not escaped
censure, though many attribute the event to treason
on the part of some of his officers. In the following
letters, which Urquiza wrote to General Paunero
and the President Mitre, he promises an explanation
of this extraordinary occurrence, but gives none.
"Headquarters at Basualdo, July 4, 1865.

"My esteemed General,--I yesterday set out, as
I had announced, to see the President, and had to
return when nearly half-way, having been informed
that a portion of the men of the divisions was
disbanded.

" This event is the effect of some disorder or false
reports respecting my march, but it has been re-
strained, and I hope that those who abandoned
their duty will return. Fearing that at a distance
too much importance may be lent to the occurrence,
I hasten to communicate it to you. Some have
already returned.—Yours, &c.,

JUSTO J. DE URQUIZA.

" TROUTOS, July 7.

"My Esteemed President and Friend,—lt is
with the most profound regret that I inform your
Excellency that I was to-day unavoidably compelled
to return with the forces under my command, and
to disband them for some time, feeling confident
that they will shortly return to their ranks in
greater numbers.

" I shall personally go and give your Excellency
an account of this occurrence and its causes, or
will send competent persons if any unforeseen per-
sonal impediment should arise.

" Your Excellency may rest assured that I took
this grave resolution without awaiting your orders,
because it was not otherwise possible to avoid
making barren by demoralisation and disorder
elements which ought again to contribute to the
national defence, as your Eminence may be sure
they will, and as will I, sacrificing myself alone if
need be.

"This will be followed by full information.
" Your Excellency's loyal friend and servant,
" JUST() J. DE URQUIZA."

The allied armies, which had been waiting for
this General's forces, was still at Concordia, but cn
the eve of moving, and Admiral Tamandare had
prepared a flotilla of small steamers and launches
to operate in the Uruguay, as soon as this river
became navigable.

Her Majesty's ship Satellite, Captain Crofton,
sailed this morning for England, having on board
the officers and crews of some of the gunboats on
this station, who hav4 been relieved by others
brought out by the Narcissus. The Satellite will
call at Pernambuco on her way home.

TIIE GREAT EASTERN RAILWAY. The half-
yearly accounts of the Great Eastern Railway Company
show a balance which will enable the directors to declare
a dividend at the rate of 1 per cent. per annum, subject,
however, to the question as to the interest upon stock
raised for new works being charged to capital.