, 1866-03-29
chill AND PERI.

Inacustsy OF tho R1ockadinS sauad,o.
-AChIIIau FUFtA.sanltcd-Th The Span.
iah ve>sels Driven OE-Tne Torpeao
Expedition AT Work Mt Ca1i4o.
ECal1ao Correspondents Panama Stsr and Herald.
There Is Up to the sailing hour of tho mail
steamer NO Inportant news to send from Val
paraiso. The two Spanish higa.es, Villa do
Madrid and blanca. had returned from their
expedition to the South, but no news |; re-
eeived from on board as 10 the mission on
which they had been engaged. Many say
that the crews OF the Spanish squndrun gen
eral]y ase tn an unhealthy state they have
now been long time on the coast, cooped
aerfn1 If such we're the case. The real object
. Of the recent cruise Of these Two frigates
would sccua, however, to have been rather to
look fot the Gillian aud Peruvian combined
squadron. suspected to be still On the coast
south Of valparaiso; hut We ars without In
formation OF anything definite.
THE protracted Inactivity Of the SpanI,rd,-
rs they lie before Valparaiso blockadinr our
principal port, Is becoming very lrkso,1c On
shore, not 10 much because trade continues
Mnguia, As because we see NO speedy release
from the present unsatisfactory state; and
this uncomfortable feeling Increasing, woulI
lead some to be inclined to hear now at last
the Spanlards would be inclined to BE- reason.
able II negotiations were to be resumed. Such
cnunsels, however, Will not get. ior long
t!ms fi1, RreTai! Ecne1al:y; O.: Tho part OF III:
tns senfsgs II nHss' npssDS u saSnss ss
and upho1ding the bank credit aud in-
spring confidence. Government has lust
re-authorizel and guaranteed the notes
issued BY the Bank, OF Chill, while
samc Of tho leading foreign houses have
largely introduced the new Peruvian vol pieces,
of equal value With the Chile dollar. 20 that
much str1ngency IN the money market does
not exist. The faeilitIcs afforded by Govern
ment to trade ut the outset Of the war. is to
duties on imports and exports, are still con-
tmued At the unblockaded ports aud the mi
nor ports, through which Valparaiso l. at
present cn1yipg on what business is being
transacted beyond the country. Cousfdcra-
bic activity prevails. Tho fact Il, that In
reality the Spanlnrds are Makin, nothiu. Of
their present posltion-uor, indeed, are they
likely to do 80.
A Consular protest, ably written, has been
made aGa'nst the Spanish commanders de-
clazatton Of coal being contrAbanl of war.
The spaniard, however, is without iull pow
ers from his Government. and Il merely Ect-
iDg TIL the successor Of the late Admiral Pa
reja comes from Spain.
From Coquimbo Important news is sent on
as to the Iesult Of the cruise Of the Spanish
fr1gates Villa de Madrid and Blanca, brought
by sailing vessel from the South to Co,uim-
DO. These frIgates went to look for the al
lied squadron, and found them safely sltuated
the larger frieates dared not pass. 1t
the month Of tho river Is Clilian
tortihca!lon OF considerable strength.
and which In addition,l had mounted tho
guns taken from the Peruvian ttlgatc Amazo-
nas, lately wrecked on tho bar. Thu Span
iards essayed to shell the place, aud attempt
Ut long range to reach tho squadron Inside.
The tire was handsomely returned By the fort,
and with considerable effect on the spaniartis'
whose rignte, the Blanca, has received very
considerable damage, so much 80 that both
trieates hopesyssly left The place In disgrace
to return to Valparaiso. Thls may bo con
sidered another triumph to the allied arms.
and will still more and more Inspire pluck and
determination to the whole coast to resist
their common enemy.
1t was rumorel In Valparaiso that credit.
to large amount, granted By the Oriental
Bank Corporation OF London on their cor
respondents, the Bank Of Valparaiso, had
ter establishment- They were. however. i'm
medtately taken up BY the National Bank
Corporation
Bolivia allies herself with Chile and Pera
for offence and defence, and President Mel
Eafejo initiates his now hrm establishment IN
the country by this act Of loyalty to the
South American cause.
Perm justly prepares to take her full share
Of the war. Day and night preparations are
pushed forward, and for the defence Of Callao
VIC Will have eight torpedues ready In the
course of next month The makers Of thasc
torpedoes are the sarna as were employed by
tho American Government, and who made
the awful weapons which did the work for the
Albemarle In the late American WAT.
In Internal politics all Is quiet and proyrcs-
sive, Prado keeping the teins Of government
with q firm and skilfu hand, inspiring coua-
dence mora and more every day.