The New York herald., 1867-02-26
SOUTH AMERICA.
OUR BueHos AYRss CORRESPONDENCE.


Paraguay to be the South American Balance
ing POwer-AnOmnlies in Argentine FL.
nances-Prstestant Missi0ners-Sl0w Pro.
gress Of the War-Denth Of an American
Torpedo Maker-The Governor and the
Legislature MT Observation-Disclosures
&C.. SC.
We are just closing of the evcnful years Of
Argentine history. foreign Of unprecedented pro-
portions for this country has drawn into Paraguay
military men and all our fighting material For ten
months the army has been foreign SOIL and every
nerve Of government has been under contribution to
give powerful strokes in quick succession. But foe
was met who was prepared beyond all credibility.
small force Of good soldiers deemed ample sweep
out Paraguay. The has given Paraguay such a
prominence land Of resources, of military heroism,
century peace could hardly do II has battered
into notice and into audacy little country less than
twice large Ohio and IL has given footing to
other Power capable time Of asautng any two OF
the most warke countries OF south America at once
From the Amazon to Cape Horn and from the Andes
the Atlantic little Paraguay holds the balance OF power
and dictate Of peace in any conflict This is
change TO be put down for 1865
During this year the price OF the paper emission Of the
government has greatly increased its value. Tho silver
dollar began the year with about twenty 10 one
it is now worth twenty-five and half to 1t is
time Of becomes cheaper and the paper promises
pay become more valuable This with
provincial bank issueA National bonds interest paya
bic here have also improved two three per All
this has Como while bonds in the London market
have gone down, and no loans can be made abroad
This confidence At homo, influx Of gold, increase Of
value of paper are all Indicative Of solid metallic basis
and better financial future
The march or progress is unabated Railroads during
the last year have been sopg forward aiming at the
prolific interior Of the country aa passes in the
Andes, giving promise Of joining tho by rail-
road. immigration has during 1866 poured into those
regions about fifteen thousand inhabitants, chiefly
Mtore Two tree colonies have been begun, giving
not only Of increased products but Of defences
the valley Of she In Plata there arc now employed
twenty different Protestant ministers Ave more than
eight who connected with the Methodist Episcopal
Church Of the United States These are not all Amcr
cans but they sustain this relation enthusiastically. At
nearly all the stations made by the American mini sters
there are schools established and the North American
system OF teaching Is in great favor here The depart
ment OF schools brings its seats desks and
Of its books from the United Statce
Az to tho war, tho present condition OF things at
promises but little TO immediate results.
Rcnforcements arc needed in large numbers before any
important step can be taken. Marshal Caxias s reor
ganizing the army and gathering provisions; but this
is Flow work. and besides the losses have been severe
that the that be done is 70 hold on to present
Ever since invading Paraguay the allies have been
under disadvantage account OF having only small
guns Recently they have landed eleven heavy guns 10
good positions reply to the Paragunyan sxy-eght
FOUNDERS The fleet remains inactive, except small
ioa that has up the Parana river to cut OF
the contraband trade with Corricnlcs This has bc.n
entirely unrestricted until lately. The Paraguayans do
buy II they steal but being on good terms with
the people on tina. river hsy have been very aS
mine under the allied camp, and this was rnher con-
irmed for while BY tremendous explosion that oc.
n &xo f~rxrr fhnd Ssf
undermining ialhomess swamp, II appears that the
explosion was that OF magazine in which some nvo
aso were desrovcd and horses and il is said
men. Tho allies at once opened nrc on them, put was
very sharply returned Il s sd that they want thirty
thousand recruits In order 10 be able to make an Inn.
povtant movement II 10 not at ell Likely that the half
or that number be sent up The aggrcssors are not
able 70 use the spade defence are those attacked
but the skin and the Of work done BY the Para
guayans s . marvel They must have some very skill
full engineers among thsm.
making orpcdocs died At Hunaiia about six months ago
He was from washington city, and had scrvsd a. pr
vate for two years In the federal army during the late
rebellion He was highly esteemed here.
There is scarcity Of cattle for the army surplus
%sny ~ Is. o. Ssss
Sss: rsosn.s heard q s.s.lo selling "a silver EACH
much less than the hide brings In Market
"A singular COLLISION bas occurred in this city, oetween
the Legislature and the Tho latter cited the
ss%b r me sts ss' Circular letter % the
ssnsso stating that they did assemble he would
administer the government though they had sane.
toned his proccs would trust 70 future Leesla.
turc 70 egaxe his acis They have mot yet REPLIED but
II 10 expected they will assemble.
We have had another rumor Of gold in the noun
ains in the southern part Of this province The Sdnd-
ard here has glowing accounts Of the gold but thus ar
no nuggets have come to town II the gold articles
from the Standard should get into the North American
papers would bo we'll Tor advcnturers TO wall Tor
another mail
Gold has recently been sold st s22 go currency, for
the dollar This IL the cheapest gold We have known Tor
yearA Exchange England, l816d 70 the gold dollar
There fifteen United States vessels In port This
is m unusual number