The Sun.
London, England, 1866-09-28 00:00:00

THE PACIFIC COAST.

The mail steamer Chile arrived at Panama on the
3d inst. with dates from Valparaiso, Aug. 17 ;
Caldera, 19 ; Arica, 22 ; Callao, 28 ; and Paita,
30. The Panama Star Herald publishes the follow-
ing news for the English mail :
CIIILE.—From the Mercurio of Valparaiso we
learn that the principal object of the loan lately
contracted is the payment for the ships of war pur-
chased by the Chilian agents abroad. Two of them,
the llenriette and the Ne-shan-nock, have already
arrived at Valparaiso; the first is an excellent despatch
boat, but the latter turns out to be no better than an
ordinary transport, possessing great speed and good
accommodation, but in no other way adapted
to war purposes. This disappointment has given
rise to grave accusations against the Government,
for not having provided the country with a formid-
able squadron.
The Government, in reply, pleads the great diffi-
culties which surrounded its agents abroad, especially
in the United States. After numerous fruitless
efforts of the Chilian agent in the United States to
purchase the class of ships required by the Govern-
ment of Chile, the latter found it compulsory to
alter its instructions to its agent, and consequently
commissioned him to send ships and guns, cost what
they may.

The situation of the Government is at present
most embarrassing as public opinion insists impera-
tively on the continuance of the war.
The Chllian press is unanimous for the further
prosecution of the war, as being tha only means of
settling the questions at issue between the South
American Republics and Spain. The news lately
received from Spain is not calculated to inspire con-
fidence, as it appears, in the face of the declaration
made in the Cortes that the Government did not
intend to continue the war, but the Spanish arsenals
are still fully employed, and the ships which retreated
from the West Coast are assembled, some at Rio
Janeiro and the others at Tahiti. We received in-
telligence on the 14th Aug. from the Prussian bark
J. G. Portales,which sailed from Tahiti on 3d July,
that the Numancia, Berenguela, Vincedora, and the
Marquis de la Victoria were then at that island, had
had repaired damages, recruited the health of their
crews, and were to sail for Manilla on Gth July.

The question, relative to the boundaries of Chile
and Bolivia has, at length, been definitely settled.
Valparaiso has almost entirely recovered its former
activity.

Exchange on London, 60 to 90 days, 44d. to
441 d. On Paris, 4.62 to 4.65 francs. Freights to
England, £3 ss. ; to France, 100 fr. ; United States,
£4 ; Melbourne, £3 10s. ; Guayaquil, $lO to $l2 ;
and to Callao, $4 to $5.

PERU.—During the last fortnight there is but
little to report from this Republic. The Govern-
ment is pursuing most energetically the line of policy
with which it started—the development of the re-
sources of the country and the welfare of its people
being its sole aim. The Callao (late Chalaco) and
the ironcladlndependencia have arrived atCallao from
Chile, the former with a number of discontented
naval officers, uudor arrest, ou board.
The P.S.N. Company's magnificent new steam-
ship Panama, the largest in the service, has arrived
out after a most splendid passage from Liverpool.
She made the run from Montevideo to Valparaiso in
ten days. She was brought out by Captain Thomas,
for some years in the company's service.
From all the other ports at which the Chile
touched, there is nothing of importance to commu-
nicate. The Chile experienced fine smooth weather
all the way up.

By the Talca we have dates from Bogota to the
Bth of August, from Popayan to the 15th, and from
Buenaventura to the 29th.

On the 7th the anniversary of the battle of
Boyaca was celebrated at Bogota. President Mos-
quera issued a patriotic proclamation on the occa-
sion. Preparations were also being made in Bogota
to celebrate the 10th August, the anniversary of
Ecuatorian Independence, which was pronounced
at Quito on the 10th August, 1809.
Autioquia has refused to accept the circular of thQ
Secretary of the Interior of Foreign Affairs, rela-
tive to public order.

In Tolima, the Assembly has approved
of the following proposition :—" The Consti-
tuent Assembly of the Sovereign State of
Tolima, in the name of the people whom they repre-
sent, recognise in the Gran General, Tomas C. de
Mosquera, the chief leader of the liberty of the
people and the founder of the sovereignty of the
United States of Columbia, and appreciate in the
highest degree the eminent services which he has
just rendered the Government in Europe, as Envoy
Extraordinary and Minister Plenipotentiary of the
Republic, in which mission he elevated the name of
the country, and brought it to noble distinction
before foreign courts, at the same time that he was
enabled to open the doors of the wealth of the na-
tion and consolidate peace and liberty in favour of
progress."
We have news from Cauca both by private letters
and through the newspapers. The entire State has
displayed great enthusiasm in the election of the
President and representatives. For President the
candidates are Dr. M. Dolores Camacho, Dr. R.
Mercado, Dr. A. Ceron, and General A. Trujillo,
the latter being the most popular.
The Assembly, on July 20, passed the following
resolution :—" The Legislature of the Sovereign
State of Cauca gives a vote of adhesion to the pro-
gramme of peace, liberty, and progress with which
the Gran General, President of Colombia, has inau-
gurated his administration, and congratulates at the
same time the majority of the representatives and Se-
nators on the patriotic and legal co-operation which
they have rendered him in the last sessions of
Congress."

The Buenaventura road continues to progress.
The great work of uniting the island with the main
land had been begun by means of a road built
through the creeks which form the island. This
portion of the road, when open to the interior, will
cost upwards of $lOO,OOO.
It is said that several new gold mines have been
discovered in Buga, Caldas, Cali, Palmira, Atrato,