The New York herald., 1850-01-10
Highly Important from Washington.
NEGOTIATION and PROBABLE SETTLEMENT OF
TEE NICARAGUA QUESTION.
Tho Terms of the settlement.
The Alleged Defalcation Of Prosper NJ. Wetmore---
Other Defalcations, and Other Matters.

I never write to you bnt when have something of
Importance to communioite This particularly the
during the furry Of the Poussn affair when gave
you all the particulars, the private we'll public
causes, which led to that flare up The same motives
governed me recently ~hen gave you sn account Of
the Nicsr,gus business and stated what steps had
been taken by the two through their prin-
cpAls and their agents, looking final settlement
of that ugly and difficult matter, comprehsndiug the
great water communication between the Atlantic and
Pacific under whose protection and sovereignty
It should be constructed and managed. As an appen-
dix to this latter intege have learned
ibipg from the State Department connected with the
matter, which will be inrere ting to the public
both sides Of the Atlantic, and to the commercial In
terests of the whole world have undoubted reasons
for believing that negotiations have already
between Sir Henry Bulwer and Mr. Clayton, on the
Nicaragua affair and that notwithstanding the bully
and usterng Of the agents Of both governments
Yin Central Amerca during tne last two both Lord
Pslmerston and MIR. Clayton have not the courage to
stand to their declarations but have been making
arrangements to back out To hitch up and settle the
whole business in the same way as two shsrp-set
brokers' or Jews, would settle any ordipary
Transaction in Wall street, in New York, Lombard
street In London, or. on the Bourse In Paris
believe gave you the fret correct history Of the
steps that taken during the last bet
Lord Pamerston and Nlr clayton ue to the expected
arrival Of Sir Henry Bull this side of tho water
filed up the gap In that diplomatic history by giving
ly on an suthentic account of tae negotiations an 4
treaties effected by Mr. Hise u Ceutral America dur
ing his mission there, with the motives and
which caused them to be set sside and thrown under
the table, before MIR. clayton had got the hrst
flush of joy at the reception of documents which would
give him a held Ia Central Aaerica, in opposi-
nr fion to Ssn prsssnsoos ,b at mat time o.nru was
and prstested those important documents for the
acceptsncs OF our government. ar. Clayton was
then busy With his quarrel with the French repub
lic, arc cid not want at the same time to assume
bellgerent attitude towards England. He cogitated
for long time, the reception Of Mr.. Hses papers,
uCta ~ 10
verpment would fight swim the river,"a he
termed It, In his elegant Dve,ssona style II seems
how from the progress which THESE curious nego
ttations have made betveen Lord Ialmsrston and Mr.
Clayton including tbas between their agents and d.
plomatkt that neither Of the two great parties the
British government managed by Lord Palmsrston,
the States government msnsged by Mr. Clayton
that neither Of them would the resp )nsblity
d fighting or SWIMMING the river" but both are
creeping out Of the difficulty ensakng away from their
own complications in tAs best way they can aud are
under the influence which governs sharp set
brokers ana men Of business, in endeavoring to
settle the whole matter on the principles Of com mon
sense and mutual interests.
Well, what has been done In these important neso-
tiatens since the arrival OF Sir Heury 8ulwer, will
endeavor 10 tell you as briefly possible There have
been two three interview bstwsen Mr. Clayton
ard Sir Henry Sir Henry presented certain pro-
gramme for the settlement Of the question which
negAtived By Mr. Clayton the ground that t reoog
nized the impudent tensions of the Mosquito Kiog
and dio not adequately settle the recent extraordinary
diplomatic doiDgs Of MIR Chuckehsad Cnatdeld, the
British Charge IN those seas suSsrqusnt steps were
taken, after reflection and consul in this matter
he United states and Sir Henry Sal ser the par. Of
Epglsnd-hsve sgreed 10 n certain arrangement en-
brscing four hve, or ak leading points. BY which
ally provided the United States Senate, on the
one eide aud Lord Palmerstos, on the other, agree
20 the result arrived at by their respe,tive pego-
tistore. By the proposed arrangement the United
States and Great Bntain agree IN cOovsation 70
stitu.e themselves the projecting powers OF the
great enter prise TO connect the two guarantee
ing neutrality to thu canal sbDut to ~ cOustru,ted
and opened through Nicaragua under a charter from
.he government on that State. BY that convention,
the sovereign right of Nicaragua the whole Of the
territory lying between the Atlantic and the Pssiic
sceanr embrsc3g both sides of tbs of the pro-
poed canal and the nsvigatoa leading to each end,
IL Acknowledged and guaFsntied by the two power,
and throT TO the whole connercal world unier
certain gere.sl conditions Another point OF tae
arrangement surn,.izes the protecting powers,
even in time or war, 10 ,'ese the csnal In
neuirsl position, open to all nations, Win : nsu'
trail efing on each eide Of the Isthmus, embrasiny
about tws degrees Of each OF the great Within
those limits even In stse Of maritime war attack
Of another, but fail sweep Is gwen beyond them ou
either eide, Another paint OF great Importance is,
that the authority vested by the state s Nicaragua la
the canal company ~ 10 be complete and perfect ever
the rates q toll. and the financial and CONNER
cisl management Of the whole line IL is slso under
stood that the Russian government, aud even the
French govsinmeDt. may Decolio parties aud occupy
the tame position protective powers a. the Others
the and use OF this canal
Such the general which have the beat
eon for believing entertsred In the prelimina
~ steps towards nnal diplomatic sdjus.msnt of this
eovetrmsnt gives up all the right and exclusive au
thority which was reserved q this country by the
famous treaty Of Mr.. Hise-the p-tticu OF which
gave you former occasion Mr. Clay ton slso sbsn.
dous the high national ground Ia relation to the inter-
which vas ASSUMED BY Mr.. Monroe aod maintained for
several subsequeny by every party Ia this
Try Mr. clayton slso gves Up the free passage Of all
American ships a war through that canal, which vas
secured by Mr. bses treaty Ia fact the Whole Of the
advantsges secured by that treaty thrown aside,
and IL H. avs probable that the treaty Of MIR Sluisr
mepts-vlil be dRsvoEed sai throFn adds; and that
accomplish &C. will be rejected recalled for hi.
temerity In carrying out American Ideas ana attend.
Ing 70 American int.res, Ia tha. reyon In oPpoi,n
60 the p'e'snions ~ the Bril- government, and the
csvins in OF Mr.. Clsyton's policy
While Mr.. Clayton, for The American government
sJ Jle in which SIR Polk backed out in the Oregon
affair, Nr. Bulser. on the patt Of England gives up
che Mesquite King an d his txcius territory his and
faher bis drunken orgies and all the antics performed
BY Mr. thetneld on botn sides ot the Isthmos From
this ve~ Of the matter It douh1ai therefore which
OF the two eovetnments through their foreign
taos and diplomststs gives the most the sake
Of at reaching the Important project Of petpg
the canal that revoutonize the whole commercial
world. Both have blus,ersd and buaiered great
deal: but iBaence of coumon sense arose non ths
purieus Of Lombard street aud the London Exchange
on the ore eide, and oozei from Wall street on
the other whch has produced practical sud peaeeaoe
solution 81 the great water intercourse eetveen tie
Atlantic and the Pacific which hs. engaged the attep-
tion of the civilized world for three centuries past. IL
is Understood that, ss soon AZ those treaties are
ccmpitted, the company recfutly CrEauiAeu tne
construction q the canal raise any amount
Of money in London or Paris, TO carry 70 into i'm
nsdnte execution. Sir Henry Bulwer has aready
offered TO take, on the part Of London capital.
lists, four hfhs Of the amount that may be ne
oeseary Tor is completion aud Is supposed that the
Emperor OF Russia will also want to have share IN the
stock, ard will become party 20 the convention az
soon ss Ompleted between Sir Henry Buser aud the
American government. In order 20 make the matter
more complete, Siao1r Catache, the new minister
from Niosrsgua In this city has dissvo ved, under-
stand entirely the treaty which negotiated By Mr
Hise on the part Of the United States, aud Sgnor
sevs, as commissioner the part q Ncarsxus abou.
tro years ago. This refers Go the exclusive treaty
which have already described, sad copy Of whioh
has been demanded BY the Senate but after It's rspu
disuon BY the Minister Of Niosrsgu nov here.
In tbsse negotiations, MIR. Clayton, following the
sbufiing policy Of Mr. Polk In the Oregon business
will yet accomplish something Of practical utility for
the present generation. The nbsurdities which ne
committed in his other negotiations may be laughed
at for this h the only stoes In hand that he has
made since he has been Secretary Of state Vet
don't think that MIR Clayton is equal, q pegotistor
TO Sir Henry Bulwer. The English Minister IL q
perfect original In bis way To appearance 10 con-
versatou and In the details Of business he hai
an he slv soue Of n Bond stre.t dandv ot