The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-02-23
OUR SANTIAGO CORRESPONDENCE.

| Great Activity Of the yynr and Navy Depart
| mcnfs-Immensc OntIays- More of tho Me
| dinfion demonstrating observation-disclosures
| ment of Congrcss--The Tax BiII-LetteI
from President Johnson-The Mendoxa
RevOiuti0n-It Assumes Greater Proper.
| tioRs-Gcnernl News, &C., &c.
SANTIAGO, Jan. IS, 1867
Nothing OF Importance has TRANSFERRED since my last
letter respecting the spanshAmerican difficulties and
the question rests Just the last eight mouths
with the allied republics waiting for something to turn
up. The press Of Chile occasionally INDUCES In specu
aions concerning the designs Of Spain and the object
OF the recent movements OF the Spanish gates at Rio
Jancro and Montevdeo but Is unable to give any sat-
factory theory relative to future operations by tho
beiseIents. Everything remains in cloud OF doubt
and uncertainty awaiting definite information as to
whether Spain really intends to send another
newing hostili.ies Meanwhile the preparations for
defence are progressing, and the allied squad
ron and the Notifications OF Valparaiso daily becom
Ing more formidable. The English bark Athause
has arrived with six 150pounder Armstrong guns four
20 Founders OF the same pattern -four 6pounders for
launches and large quantity OF ordnance stores In
gliding Congreve rockets cutasses revolvers &c she
also brings uniforms for the marines and a general
assortment Of articles necessary in the new SQUADRON
Tho extensive and elaborate forts surrounding the ay
OF VALPARAISO are nearly completed aud of tn EN-
have already mounted rife guns Of large calibre. The
steamers purchased in the United States and being
ntted out for the squadron receiving their respective
ornaments and will soon go into commission In addi-
arrived here from the United States and England,
bronze rled cannon 10pounders) arc being manufac.
tured at the government foundry ut Lmache and have
thus far proved satisfactory in the various tcss 10 which
they have been submitted. The expenditures in
oo.a,nng these means Of defence have been
should be. For example, the Notifications around
valparaiso are constructed Of stone aud cement which
Is afterwards covered with earth, thus making them
earthworks so far rs the exterior is concerned Hun
dreds Of thousands Of dollars have been expended In
building these immense walls Of masonry which are
wi sand
present front similar to the forts erected within the
thousand dollars paid American for landing the
guns brought out by the ship Tecumseh from Boston,
and there is telling how much will be EXPENDED
In getting these guns from the beach TO the forts and
putting them in position Six hundred thousand dollars
were paid for the guns brought out BY this ship only
Founders. Most Of them are sxty.pounders Tho pur
chase OF vessels has been characterized by remarkable
srs totally unfit for naval purposes on tho high seas Savo
70 build ffigais. These excessive outlays. how
ever, have not been occasoned by any fault on
the part Of the Chile government lis bat a repetition
OF our experience during the first OF rebel
were taken advantage Of by sharpers interested sell
ing war material Chile has learned at great cost the
Judging from her very rapid progress in internal
men civil and religious liberty and general enlighten
msS dar r he last wSn =
republics both In war and diplomacy, within a SHORT
period She has long been far in advance Of Peru in ali
lie developing with wonderful rapdty into important
Power
since tho Anal rejection Of the terms for peace
between Spain and Chile proposed by the would be |
medators England and France, tire public mind has |
been considerably agtated by the reports Of another
effort on the part Of the English and French Ministers
to settle the question. The LArlcarrh Of santiago, |
says-.It Is said that new ffo6osohs Lave been made
TO the government OF Chile by the agents OF European
mediation These propositions may be reduced 20 I
suspension Of hosies between the American re-
publics and tho Spanish government acondonal truce
from which perhaps the mediatng governments might
withdraw without embarrassment Although the ro-
serve Of our cabinet does not permit US at pro.
lie runior, although public official act confirms this
report and although the closing declarations OF the
government p Congress announced 10 the country tho
early prosecution Of the there abundant reasons
for assigning TO the public rumor origin worthy OF DO
iie and not remote from official circles Peace or truce
said yesterday that IL ncontesabe that something
Ia bong negotiated Tor the purpose OF putting an end TO
the war Now seems that the subject being negotiated
that which preoccupics the government OF Cha in these
moments Is truce that the governments Of France and
ton ~ make acceptable at the time OF It's reception In
America 70 the other beligerent.n The idea of /
such truce w very dlstastcful 10 the public and \
Is opposed BY the press in unmeasured terms There
may be some truth In tho rufnor above
referred 70, bot have good reasons fcr doubt,ns II
am quite confident that the English ana French Minis.
teTs AZ tniH cap.al are not renew peyota-
tons for mediation after the signal fixture or their late
effort made N accordancs with instructions from their
respective Foyernments and TINT n any attempts
adjust the dictates by outside pxrtcs are rnade Al oil
tnev will be undertaken by those who have hitherto
remained entirely aioof from the subject haze
Tered ~ previous letter to the opportunity afforded
the government nc Washington "a Offer ia friendly mo.
oia.or, and II IL Impossible that the above extract
from tho fsroc7rT may have been suggested by the
anticipation Of some proposition from Minister.