The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-12-03
Our Panama Correspondence.

SOUTH AMERICA
The Pacific Steam Navigation Company's ne~ steam
ship Santiago Charles Henry Svil Royal Naval Reserve,
commander from ports the south roasi, arrived at
her anchorage in this hartor the evening u the 2sh
inst Bringing importan, intelligence from the REPUBLICS
OF Chic and Peru
There is very material alteration IN the situation
Chile the Spanish Admiral having reduced the humber
or blockaded por six instead Of the entire coast as
We at first Proclaimed These ports are Tsleahrsno,
Tom, Valparaiso Coquimso Heradpra and Cailera-the
most important in the cpotic and where all tle foreign
interests centred. zhe government Of Chile mas
also the dutses in all hes ports, leaving only
free ports tnoe t,ockaded Hence 10 wall be seen
that neatTals far greater il the war rs now
inaugurated than te bellgerents There hs ais" been
considerable relaxation In tho blockade quite number
OF vessels having been allowed enter discharge In
Ahcs ports sc,uaily closed Quite number or vsar
teH have also horn effected.
FIRST BLOOD c1aiE.
An armed boats from the spanish Ships at
tempted TO lsnd in the bay Of Valparaiso after heinz
warned that they did they wonid ne free e,e
The officer IN command scorned Tire wsrni.. when
~" "'n ,, NM xilng and wo'na'ne
80, ~ ..c spaniards aud driving ahe re'n' nue. -
xonfusior ito their moo.
~ -. OF the entire of the rere
Ip,,onary party occupation Of Lima by the irsar
scnts sd the fright escape Of President Pezet fns
.ews rs not unexpected although many wtr ~ The
opinion that the government would be successful; hut
the want Of confidence IN the government troops has
proved correct: for although behaved well and
fought great determination ty far the larger nun
Der proved there dependence to- he placed in
them. The fighting in Lima was very severe and the
los very heavy in both Killed and wosaded The nc
count or H. together with the dgrnce scenes enacted
In the Port of Caao given length IN The very mite
resting letter OF your Peruvian correspondent Many
snFp fNnfg
some OF avery distressing nature.
Admiral Pnrcja has 50 modified his proclamation NJ
blockade of the entire coast of chic as 70 make u In
ciuGe only the six principal pris OF NE republic
those where he is able TO station one vessel Of wt.
Now, The question arises does his vessel placed az
the entrance 81 harbor, continue an elective block
ade? Would England have acknowledged our blockade
OF Mobile. Charleston and Wninzton as effective We
had had three times the nunoer only on those ports In
one sense II H. because ~ matter how many Vessels
might run into Valparaiso facahuano Coquirnbo tie
Chlcnos hare not hcvy gun In position 70 protect
them, or % prevent the spaniards going IN and taking
The Spanish Admiral been called upon officially
ty the representatives Of the United states England
Italy Brazil Prussia ard France but The nature Of thor
interviews has not vt transpired The Mercp'o Illus
speaks Of these visits
Although II is notonous that the oSly object Of these
gcntcmcn the restoration OF peace the steps suggested
IN pursuit Of this desirable result have not rsnspired
and equally ignorant OF the manner IN whl.h
those reprscn atiog have been received by the Admiral
Notwithstanding, taking into consideration tina, the
diplomatic and consular body have sgmatized the
duct or tire Spanish Admiral contrary TO international
law, and nave protested in tho most solemn manner
against such abuse Of superior force prononnciug
Spain responsible for the prejudice caused TO The into
icsts OF rer countrym.n, convinced that Their
proceedings the Admiral have been consistent with
those puosations and have tended towards his enlght
eminent az 70 the irregular and arbitrary character OF his
schemes
The modification az the blockade is thus spoken Of ~
the same Journal and also the injury 10 ncrtral interests
y rcicrTed % which has now become subject OF serious
by this alteration Of rneia's plam The nleealIty
OF the former general blockase parcr u
a ofyaf III all
who have 'oes2 exposed 70 loss by the previous
inflicted injury on Cheans and foreigners innartlallv
md AFFORDED the Admiral an opportunity OF pafasing s
egany ana making STOW OF regard and consideration
blockade oi the six ports attacks the OF foreign
crs exclusively because suspends all business transac
lions IN the ports where European and American
commerce has capital invested and where according
10 ,he dispositions Of our government importation free
of CUSTOM house dues Is sot permitted Thus while \
other Parts remain open for the expectation 81
chilcan produce and importation Of foreign goods
without Tps Ifg duties OF any kind in the ports whore
neutral merchants are established nothing Of the kind
impossible.
ycr,ing their ships0s custom houses col
lecas import duties or part Of them from lhc ,rgocs
they may permit 70 he discharged ,kc government 4.
sued decree declaring that tn. exemption from duty
conceded 20 the importation OF ieeign merchandise was
only extchdcd 10 those ports not ecsnty blockado by
sufficient force Thus has been bafcd he object which
andoubted Spanish rapacity had promised itself In tho
permission 20 dscbbpe which they began 10 grant a.
ne als AMI thc Admiral By his irnted blockade, hss
only placed not'rab Ia worse condition than bciliee
Tho YAH ara,so psce C9rrem, In rs review Of -
market speakrg u 10 first sccrae 81 The goverron
a. dectrne al pors free, and ucn, only few days
aierwafd annulug much ~ the decree aj1'es ~
che siN prnc pal ports saTe--
"fhe policy which dictlfeg lie frrt der-ce may well
R taed ~ question since Il dopccd the country q ~
5sne ~ revenue "a Tine shen Tres greatly ~
or asod resource W.T. The pscy or Esling decree of
f1fb an important nature, Twelve days Afterwards
tssung another, which viituay nullines The former,
qures no comment What confidence the CONNER |
cal world have In the government nftcr this2
Another twelve days tHay bring forth decree up 1
setting both OF the former As H. merchants feel BY
certain that Tho Goods whrh they have for |
warded 10 the open ports will bs adnttci OF duty
but this point NJ all events viii be very shortly solved
The same authority goes SPEAK of TIC market o.
follows Tile general condition Of the market has
dcrpone little alteration srce our asi and facs from
the asf commencement OF atc irf ubies unsil tie
pres time khcrc be- almost total tarpensi.n OF
oil transact ons oar posibioh however, gradually
VT0yIng; ,he peDsy Wahct IS very much csscr, The