The Sun.
London, England, 1867-09-30 00:00:00

SOGTH AMERICA.

A fortnight's later intelligence has been received
from South America by the French mails from
Brazil via Bordeaux, and brings the news of many
events of importance from the River Plate. Dates
from Buenos Ayres are up to the 12th of August,
and up to the sth of same month from the seat of
war in Paraguay. The long projected move of the
allied army had taken place : the vanguard under
the command of General Osorio had marched to a
very exposed position on the flank of the Paraguayans;
Marshal Caxias, with the bulk of the allied
army, was at the left of Humaita, near San Solano,
while the old position of the allies at Tujuty was held
by Porto Alegre with about 12,000 men. On this
extreme position, now occupied by the allies, we
take the following from the Buenos Ayres Standard
of August 11th, which says—
" The line of communications which the allies
have to maintain is so much exposed that unless the
Brazilian squadron force the pass of the river at
Humaita, the present position of the allied army is
untenable. A combined attack on the enemy is
mooted, but although the public of Buenos Ayres
regard victory as certain, and immense prepara-
tions have been going on to celebrate the
long-looked-for triumph, we cannot hesitate
to say that the difficulties which the allies must
encounter in an assault on the enemy's position are
of such a character as to inspire grave fears as to
the result. Had the allies, when they effected their
flank movement, pushed on with energy, and at-
tacked the Paraguayans before they had time to
concentrate their forces in front of San Solano, it
is probable they would have forced Lopez behind
the very walls of Humaita. But valuable time has
been lost ; the fleet never attempted a passage, and
the result is that the enemy not only defends the
line at all points, but has cut right down on the
road leading from Itapiru to San Solano, and swept
off several hundred head of cattle, bullock carts,
; and, in fact, the allies preserve their commu-
nications with the river only by means of a powerful
cavalry force under the command of Gen. Ilornos."
From the foregoing will be seen that it is extremely
doubtful that the allies, even with their change of
postition, will be able to make an attack with any
chance of success, while the fleet is still inactive and
unable to move from their position in front of
Curupaity. In the navy as well as in the army
dissatisfaction prevails, and on board the man-of.
war, Tacuary, the men had mutinied, thrown their
officers overboard, and kept the captain close
prisoner. All these symptoms show that the war is
not popular with the masses
,in 14:attar:at Buenos
Ayres, and that they arc worn out from a pro-
tracted three years' struggle, in which nothing
has been gained—not even a dry foothold on Para-
guayan soil.
At Buenos Ayres files of papers bad been received
from the capital of Paraguay, Asuncion, and from
Humaita, giving accounts of the usual quantity of
crops, and it seems the country had suffered little
or nothing by the war. A large wine factory bad
been established at Caraguatay. Festivities and
picnics had been held at the capital, and a large review
of the garrison on the hospital grounds, and all the
ladies and countrywomen of the capital and pro-
vinces are sending in jewels and finery, offering
their support to the army, and not to conclude peace as
long as a foreign soldier stands upon the soil, display-
ing fully the patriotism of this small but brave nation.
The interior provinces of the Argentine Confedera-
tion are still in a state of anarchy and rebe:lion,
and alarming intelligence had been received from
Entre Rios that General Urquiza was arming his
forces. Congress at Buenos Ayres had been dis-
cussing the capital question, and the bill was passed
moving it to Rosario. This change will seriously
injure Buenos Ayres, and may possibly again bring
about the dismemberment of the Argentine Union.
Admiral Davis had arrived in the Guerriere at Rio
to relieve Admiral Godon. It was currently reported
that he brings important instructions from the
Cabinet of Washington with regard to the media-
tion in the war now now pending between the allies
and Paraguay, and which intervention, it will be
remembered, when first offered was rejected by Brazil
and her allies. The commercial intelligence from
Buenos Ayres and Montevideo is not very encourag-
ing, if we except a thriving trade that was being done
in army supplies ; but it was much feared that the
day army bills could not be discounted that day
would see an end to the war, and both Brazil and
Buenos Ayres are making home loans and
treasury bills, and the former emitting paper
currency to a large extent in Buenos Ayres.
It was currently rumoured that large amounts of
National Bonds had been forged, and it was prob-
able the Government would call in these securities
for inspection. Grain was very scarce, and large
quantities in demand for the seat of war. Specie
had been largely exported, and sovereigns stood at a
premium, and will continue so until the wool begins
to come in and the Saladeros commence working.

RAIL WA Y INTELLIGENCE.

-

Statement of the earnings of the Union Pacific
Railway, Eastern Division, for the month of duly:
Auditor's Office, St. Louis, August 28, 1867.
Gross earnings, July, 1867, $182,570.59 ; working
expenses, $104,430.77: net proceeds, $85,139.82.
J. T. Smith, auditor.

The Boston, Hartford, and Erie Railroad will have
their road in operation to Mechanicsville, and a
junction with the Norwich and Worcester Road,
next month, and then will commence a steamboat
train from Boston, to connect with the similar train
on the latter road.

The North Adams Transcript gives the following
statement of the progress of work upon the Ifoosae
Tunnel during August :—The east end of the tun-
nel was driven by the contractors, in August, one
hundred and twenty-three feet, twenty-four feet
wideby nine feet high. Although not driven as many
feet in length as last mouth, still one hundred cubic
yards more of rock were taken out than when one
hundred and thirty one feet advance was made eight
feet by eighteen. The central shaft was driven but
hirtcen and a half feet, as most of the month was
spent in timbering and improving the machinery.
The east heading of the west shaft was driven thirty
feet. The west beading of the west shaft was
driven sixty-one feet. The west end heading was
driven thirty feet. The brick masonry inside was
driven thirty-two feet. The brick masonry outside
was driven twenty-four feet. In addition to the
above the enlargement for three hundred feet at the
east end has been nearly completed.

PRINCESS'S THEATRE.-Mr. Dion Boudeault's drama of
" Asralt-na-Pogue" will be revived. The author and Lis
charming wife resume their old parts. They will be
assisted by Miss ilue;tes (from the Adelphi), Mr. Vining,
Mr. Shore (from the Royalty), Mr. DQUtiniek Murray, Mr.
Q. P. Neville; and Mr. Maclean,