The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-08-17

In the Autumn of 1859, two frigates, two sloops-
of-wGr three briggs, twelve armed steamers, and
two armed store ships-in all twenty-one vessels
ot-war-were despatched to Paraguay for the pur-
pose of demanding indemnity for losses alleged to
have been sustained by the United States and Par
aguay Navigation Company, and reparation for
the insult offered 70 the United States flag, by
firing upon the steamer Water Witch whilst en-
gagged in exploring the waters of the Parana. A
Special Commissioner bearing, like spread eagle,
the 'tove branch in one hand and thunder bolts
in the other, was also appointed at the same time
to treat with President LOPEZ upon the matters in
dispute. Some time in January, 1859, the fleet
reached the mouth of the Parana river; q portion
of the vessels of light draught proceeding, af
forwards, up the river far as Corrientes and COM
ing to an anchor a few miles below the batteries of
Humaita, which were said to mount one hundred
and fifty guns, and to be further defended by all
the troops which LOPEZ could press into the service
Mr.. Commissioner BowLN IS memorable letter to
the President informed us that when he arrived
'things looked gloomy enough but that he final
ly succeeded in quoting the fears of the, Montevi-
deans by his pacific assurances and that even Gen.
cal warmth, when the considerable Commissioner
acknowledged imposing.
ton was merely spectacular affair, and in
tended 'neither for war, desoaton nor conquest y
The effect of this magnanimous declaration upon
the President of the Argentine Confederation as
described by Mr.. Commissioner BowLlN, can
scarcely yet be forgotten by our readers How
URQUIzA, who, says Mr.. B., is ''every inch sol.
''der' congratulated the Commissioner on t'his
''lofy assurances how he first rendered ''hs me-
"diation" which was declined, and next Chs
'gOod Offices which were accepted with many
thanks, and how, above all, the gallant General
with kind of electric sponaneity, struck hi
"breast icrcely," and promised that he would
meet his new friend at Assuncion, has al
ready been recorded among the archives of the
Department of State. 1t is a matter of his
tory, too, that they did meet at the place APP
pointed, that URQUZA arranged for an interview
between President LOPEZ and the American Com
missioner, and that LOPEZ waddled into the room
with his chapeau de bras gittering with gold lace
"under his arm, and was so charmed with the
opening speech Of the eloquent Commissioner that,
incontinently, LOPEZ and BowLIN began to play at
battledOre and shuttlecock with compliments in
which very pleasant pastime BowLN asserts that he
beat his fat competitor all hollow We know
further, that it was finally settled that LOPEZ
should make the amende honorable for the
insult offered to flag, and that he con-
scented to pay ten thousand dollars TO the widow
of the seaman who was killed on board of the
Water Witch. 1t was moreover concluded to
refer the claim for damages which had been set
up by the United States and Paraguay Naviga.
ton Company TO the arbitration of Commits
sion, and Washington was the place chosen at
which the adjustment was 10 be made. These
conditions being acceptable to both parties,
an agreement to the same effect was drawn up
and signed, and when negotiations were thus
happily brought to close, President LOPEZ en-
Enthusiastically embraced Mr. BowLIN, and Mr..
BowLIN in turn embraced-no not embraced for
the extraordinary dimensions of LOPEZ precIuded
the possibility of achieving that feat-tried' to
embrace the President; and when both of them
had embraced URoUHA, Mr.. BowLN, in conclu-
sion, "made little speech, which, says he,
''my modcsty viii not permit me to record"
This 'immense triumph of diplomacy" as Mr..
Commissioner BowLM exultingly pronounced it
triumph at all. In regard 10 the difficulty grow
ing out of the firing upon the Water Witch, LOPEZ
conceded nothing more than he had expressed
himself willing to yield three years previously to
Mr. FITZPATRICK; and in regard to the treaty stipu-
atons they do not differ in any essential particular
from those which were entered into in 1853 with
our minister plenipotentiary to Paraguay, Mr..
PENDLEToN. Though emphatcally denying that
the United States and Paraguay Navigation
Company had any just claim upon him for DANA
ges, and asserting, on the contrary, that the Com
pany was indebted to him for certain moneys
which he had advanced to Consul HOPKINS, its
agent in Paraguay, President LOPEZ was never
theless disposed to adjust matters amicably, and
offered to pay over to the Commissioner the sum
of two hundred and fifty thousand dollars as a
final settlement. The Company demanded half q
million of dollars, and as no agreement could
be reached, the amount that ought to be awarded
was left to the decision of the Commission which
has just terminated its labors at Washington.
That Commission, after an examination of all the
facts submitted by the claimants, has reported lin
flavor of Paraguay, and against the claimants, y
who, it is asserted, ''have not established any
fright whatever to the damages" which they had
demanded The decision of the Commissioners is
in exact accordance with the opinions which have
been frequently expressed by persons who were
conversant with the operations of the Company in
Paraguay, and shows how profoundly both Houses
of Congress and the Administration have been
misled by exparte representations. The Hon.
CAVE JoHNsoN--the American Commissioners in
the case-characterizes the whole affair as
little better than direct swindIe, in support
of which the demands put forth by the Com
pany 'have been enormously, if not crimi-
s'nally, exaggerated and the laws and DEGREES
Of Paraguay studously perverted. Mr.. JopssoN
isjustly deserving of unqualified praise for the
patience with which he unravelled the complica-
tons in which this case was designedly involved
and also for the out-spoken frankness with which
he has exposed the manner in which the President
and Congress had been deceived into a belief that
the claim was a just one Had the G.Rnupp and
MrApr claim and ofharc nc 49,. 80.