The New York herald., 1866-09-10
uva PANAMA CORRESPONDENCE.


The arrival Of the steamer Santiago, Captain King. has
placed In possession OF dates from Valparaiso the
10th, and from Csliao 10 the 2ist OF August
remained n a semi-tranqu state. She still yigor
ousy ortifying the coast and the government seemed
TO show disposition TO relax It's vigilance, land
water second visit from the Spaniards had ceased to
be expected. Tho
scsigNE
for uniting Baencs Ayres, Chile, BOLIVIA and Peru
gcther being earnestly capvassed The probabilities
mere that much Of the improvement as would bring
Chile and Peru In closer communion with each Other
would DO carried out Immediately In fact believe q
section OF the line leading from Lima southwark hsd
already been contracted for, and the work would
be placed in the hands OF competent builders Hut, tho
line VIC Cordilers, and the Pampas Of tho Argen
tine Republic being moro difficult to construct would
no, be undertaken uli after further consideration
TIM CHILEAN mAy-of-wAs SEsuasS0cK
had arrived Valparaiso She Is vessel bailt al
Philadelphia spyard, AMI probably OF the steam
r. ciaudes;rnely purchased and out by Mr. Mae.
kcnna during his pleasant AMI agreeable soiourn aud
tho malttudc Of Yankee humbugs The chilcans
10 bc doubt Inspecting the fighting qualities ani
general capacity OF the ship yet her faulty ro.as
had been specified What kind OF craft shc IL
am wholly unable to say, only casusl mention
made OF her arrival
Another now man war, the Tssbca was hailed.by
tho Neshannock in the Straits OF Magellan She
hourly expected to arrivc at Valparaiso.
rue SPANISH rewArs ExscLuoIoS
was also hailed ia the stfats by the Chilean steamer
but not attacked The crew OF the Resolution were
nearly all down with the scurvy. The ship without
rudder and short OF provisions Finding enemy
in this helpless plight, il is very singular the Neshannock
did make her prize and bring her Valparaiso.
The other vessels OF the Spanish lcc which passed
INTO the Atlantic, were found in varous ports along tho
| eastern coast. Negotiations for
Tx1sANGE PRISONERS
being carried on between the commander OF the
Spanish squadron aud the Chilean minister at Buenos
the prisoners either hand without regard 10 the com.
| paratIvc isnk rlaber.
THE
10 The Chilean governmen, will net exactly s. $50 ooo
This will o0ly afford the country temporary relief
nccpTA.
Tho Pr ncb steamer Souycau Monde from 81. Sazarc
via santa Martha has arrived at Asprwa. with dates
from Bogcta 10 the 10Th unc ihe following is pos
sege translated from letter addressed 10 the Columbian
minister ai Washington by President MosqueFa + The
citizen Pres dent ~ the United states OF tolomba has
decided that half Of the product Of Tie sale u tue
Panama railroad reserves shall he appropriated solely
and without deduction, 20 the object for which was
intended by the cotiact OF September 10 1851, cello.
bra,cd between New Granada and the United states n
America 10 cancel ceVain CLAIMS pending against the
fornar g,c nmen ana the other ball shall DO sent 10
London 70 comply with the convention Of octot"r 20
$780, for tie payment q the inercs. and funding Of the
rag lat KICK or rur srS,rr,
prior TO ts adjournment after the executive session
record follows -" The Senate remembers With
faction the memorable Fourth of July the annirvrssry
of the independence OF the United states aud pleased
cord the tact that the gigantic nation has among is
iustrous citizens the names OF Washington aud Lin.
cou-frends they were of humanity, and enemies of
tymnny.M
There had been nc further Developments made regard.
ng Tie anticipated
vKNNzrrts,
and The general opinion seemed to be cSrr ssei 70 Bo
gotta that the difficulty would be submitted 10 friendly
arbitration The public feeling against Mos1ucta
the natter and he had evnccd sdspogiion to yield for
TO tue wishes Of the people so u Is highly probs
| bic we will hear more Of tue cniTnglemenL
cr~rpiL AMERICA
President Casts, OF Costa kca, had returned to the
capital after tour Of inspection through the country
Prospects for heavy crops in the comns season we're
unusually good
sovr sNrcCifNG.
There IL a law cxtan ia Mexico fixing an export duty
OF gh per cent silver. wisely ATTENDED, 10
save the country from being drained Of its circulating
medium. Among private individuals this law has been
more or lcse evaded; but the British government ar-
parentiy dissatisfied with The slow exodus cStpecis by
irregular methods has entered INTO the smuggling bust
mess with rect worthy Of better object About Oar
tery OF the rgstcs belonging to the Ia nc squad
is ocsus'ohcd 70 the Mexican cosst With oTdsn v