The New York herald., 1867-02-01

Rcjectiau ef Rereign NIediasien-Tho War 20
be vigeseusly Prosecuscd-Statc Of Chilean
Flnances-The nIcndsxa Revolution In the
Argentine Csnfederarisn Christimas Fessivi-
-NIoycmcuts or the United States Pacific
SANTIAGO, Chile, Jan I, 1857.
The Minister OF Foreign Rsations Mr.. Covarrubas.
has returned from bis MISSION Peru leaving the pub
lie st in the dark respecting the purposes and
suits Of his trip There is doubt that peace wth
Spain was one Of his objects in seeking the interview
with the Peruvian government but The attainment Of ha
well known desires in thai direction Is regarded -
most improbable event - present Nothing has been
communicated officially otherwise 70 DE foreign rep
resentatives Santiago the subject of the mission
and the anxious minds OF the people have nothing 10
satisfy their inquiries except the of the lead
ing newspapers The Fnrocayrii, OF Santiago, Says
sThe result OF his tMr. Covarrubias') excursion
to the sister republic remains in most impenetra-
BILE mystery and beyond certain rumors, that there is
for believing authorized nothing is known
Of the object which took him to Peru OF the effect
OF the voyage Of the Minister the political situation
II was said that the Minister of Foreign Relations had
gone Peru with the purpose OF considering there
various points relative to the II is asserted at the
same time. by Others that the diplomatic voyage Of the
Minister had for its object incline the OF
Peru In favor Of peace; aud both versions, notwhsand
ing being hAgranty contradictory, circulated not
only in Chile but In Peru since Mr. Covarrubas put his
foot on those shores Opinion is inclined to admit the
first as acceptable II not actually understood
how the government OF Chile. the promoter OF
the war, should carry words OF peace 20 the
Cabinets Of the alliance when the s prevailing.
and the outrage at Valparaiso unpuhshed On the other
hand the declarations made by the government during
the absence Of Mr. Covarubias almost conclusive
denial OF the pacific rumors which circulated in
volving the purpose OF the government Ia Congress
lew GAYS sncc seno, Maa sLeaking AIR & LOT ne acns r
sh and French mediation, nothing had been presented
to the Chile government and that the statement that
the United States had proposed basis Of settlement
unirue that the propositions OF England and France
were totally unacceptable to the government of Chile
and that the republic resolved TO carry on
the war with all is resources II was represented
Congress by the acting Minister Of Foreign Relations
that the Chilean government had received reliable infor
nation that spain making every preparation for
continuing the war and would reinforce the naval
division at Rio Janeirc and McDtevideo
have referred In each Of my letters OF late date to
the improba5y of early settlement OF the Spanish
American question, and am assured BY every crcur-
relating the that il will be renewed
later by the allies themselves. il Spain remains m
active and will be prosecuted with vgor such as has not
hitherto characterized hosties IN the Pacific. vapa-
rsso IS rapidly becoming mpregnable, and the allied
squadron, including the lndcpendepca the tur
reted ship Huascar the fricate Aruriac Union the
America Esmeradn, CovadcDga, Aranco Noble, Con-
cesson Cyclone, and several guuboate Of SMALLER di
n node" x aeon be as 70 @
any expedition which the allies may insugurate
To outsiders this cvident determination TO carry on the
war will doubtless Inconsistent with the repeated
rumors Of peaoa but an amicabe adjustment or the DIM
culties sought by the OF Chile and not
by its Congress or people, aud whom found to be imprac
| ticabe was abandoned for vigorous policy again
the only Of csimng public indignation inclted
| ON every hand against President Perez and his
1 Cabinet The attitude Of Pen also contributed
in small degree 70 prevent the administration al
Santiago from accepting French and English mediation
and win u all probably eectualy hinder the progress
Of any negotiation: thst. may hereafter be suggested
either by the United Ststsor other Powers Every
| on this coast has made up hts mind 10 renewal o
hostitities distant day, and satisfied that
| war win only terminate with tue exhaustion Of one
or tho bcliigerents
The subject Of finance, which has occupied the at
tcnt,on OF Congress and the press or the last year
TO degree exceeded only by similar discussions at
| Washington aud New York during The rebeon Is
raise funds by "extraordnsry conirbu ,on levy
upon capital IN the country From late statement to
Congress by the Minister Of Finance, appears that
the Government has had al its disposal during tho past
wear nearly S14 600 600 derived from the follow ng