The Sun.
London, England, 1867-02-05 00:00:00

The War in Paraguay.

The Royal Mail steam-packet Oneida, with mails
from Brazil and the River Plate, arrived on Satur-
day at Southampton, and the mails were distributed
on Monday morning.
The allied army and fleet had not changed its
position, as reported by the last mail, and were still
waiting for reinforcements and supplies.
At Buenos Ayres attention was occupied by the
discussion of the various new projects before the
Legislature on finances, the all-absorbing topic, and
four projects had been submitted--first, fur the
emission of six million dollars by the Provincial
Bank ; the second, for the conversion of the cur-
rency ; the third, proposing the establishment of
free banks; and the fourth, for an increase of paper
currency.

The general opinion on the war is that the cam-
paign cannot be resumed before March, for three
reasons :

Ist. Because the Marquez de Caxias will risk
nothing at all till he get reinforcements from Brazil.
2d. Because Port Alegre is gone, and Gen. Mitre
is going in few days to Buenos Ayres, and Caxias
will do nothing in their absence.
3d. Because the allies are encamped in such un-
favourable ground, and so overwhelmed with bag-
gage and supplies that any sign of departure must
be known a month before hand.

The following is an extract from the diary of the
Allies kept at head-quarters, and taken from the
Standard of Buenos Ayres :

"Dec. Bth.—A Brazilian lieutenant and three
soldiers wounded ; two more were struck by a 68-
pound shot, and the enemy also threw a shell into a
pulperia; which made dreadful havoc among the
bottles. •

" Dec. 9th.—The explosion in the enemy's camp,
at 6 p.m., was one of the most terrible sights ever
witnessed.; 400 shells burst through the air in-all
directions, along with fragments of human bodies,
boards, hides, and pieces of burnt ranchos.
.The
Allies began bell-ringing, as if for a great victory,
and opened alot cannonade on the scene of disas-
ter. But the Paraguayans were admirably cool and
collected, -while their fire-bell rang, and the cavalry
extinguished the flames, the gunners stood to their
batteries and poured out volleys of shot and shell,
68 and 80 pounders, after which they rent the air
with cheers and vivas.
" Dec. 10th.--Gen, Castio's sergeant deserted to
the enemy ; ho passed the lines on pretence of a
special order, and soon after pulled out a white
handkerchief, safely reaching the enemy's lines."
The following is from the Standard's own corres-
pondent at Corrientes, and gives some curious dis-
closures :
There have been some more Paraguayan deser-
ters within the last few days—they all seem to be
got up for the occasion, and starved to death. They
have all strange stories. Every one swallows what
they say. I should not be surprised to hearth it
is all " up the spout" with Lopez, that a general
mutiny is expected on account of a cargo of green
spectacles having arrived from Asuncion for the
soldiers to protect their eyes from the sun ; that
they were made at the Arsenal by an American gen-
tleman named Bliss ; or that the reason why the
Paraguayan artillery was so effective was because
the soldiers all used pocket telescopes, which had
been imported direct from the States. These and
like stories are at once sent down to Buenos Ayres,
printed in all the papers ; and, of course, every one
believes them. But the Brazilian General has had
.other fish to fry since be came up here than listen-

ing to the lying stories of Paraguayan deserters ;
and there has been a fearful row here, which has as
yet only commenced, and which no man can say
when or where it will terminate: I refer to the army
suttlers, the gentlemen from Calle Commercio,
Tuyuti. Your readers will hardly credit—these
army merchants have been ordered off, and have
only got eight days to pack up. Caxias has dis-
covered that they were all * * * * when
this was first known, it was hushed up in order to
try and catch the dealers, but they were too wide
awake, and knew what Caxias was up to, so *
Verily, this is an age of wonders, and I pity
Caxias ; the mortar boats are missing, but they may
have gone down ; but the shells, and balls, and
cartridges from the Brazilian depot at Cerrito, where
are they gone to ? All sold to Lopez ? What a
scandal. Probably the next thing we shall hear is
that Rio Janeiro is sold to Lopez. I leave you to
imagine what a profound impression this disclosure_
has caased. The Diaz swindle at the Provincial'
Bank was nothing ti.) it.

Had I time I could onwnerate scores of parties
from Buenos Ayres and Montevideo who have made
fortunes ; it will be my turn next. There is a very
active trade going on with the Chaco in Guaictiru
boys and girls ; you should call attention to this, as
also to the fact that every night Paraguayans drop
down the stream in noiseless canoes. Verily, this
Corrientes is a queer place ; we are all making
money fast; no man here is for peace. A couple
more months like the last and I shall leave for
Europe.

. On last Saturday the Paraguayans commenced
their old' game, and peppered away with some half
dozen terrible-sized guns. How the Paraguayans
load these guns nobody knows, but I can tell you
that the balls are so large and heavy there are few
here care about lifting them. I saw two young
gentlemen from Bahia doing th9ir best at one of
these balls to carry it between them, but the easiest
plan they found was to roll it along. The firing on,
Saturday was very severe on both sides ; the fleet
also took part, and the roaring of the cannon
kept me awake nearly all night ; as a mat-
ter of course nobody hurt, but a number
frightened. The enemy has established a new bat-
tery in the trees, which rakes the Lagun Phis posi-
tion of the Brazilians where General Andrea has
pitched his tent.

President Mitre is now quite recovered, and able
to walk about. In Corrientes nothing new : it is
rumoured Caxias is preparing to make a dash at
the enemy in January. Heat terrific, 117 in the
shade ; mosquitoes and flies intolerable.

The revolution in Paraguay is, as was expected,
a hoax. But the revolution in the interior pro-
vinces of Buenos Ayres is gaining strength, and
many Chilians have joined in the movement.