The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-18
SOUTH AMERICA.
-~S>~->~~-~~~~>~~~~~~>~~~
PROGRESS OF THE pARAGUAyAN WAR.
Inauguration Of Sarmiento as President Of the
Argentine Confederation.
The Financial Condition of
Brazil.
BUENos AYREs.

ocnt SarmieutO-Feac0 IN tno Argentine
Republic.
BUENos AYREs, Oct. 20, 1868.
Already we have European newspapers that are
filled with rejoicing over the closing Of the Para
guayan war-an event predicted as implied and near
by the taking Of Fort Humaita. But here we see no
signs Of Its close either In the spirit OF the parties
or the location OF the forces. 1t Is true Humaita
has been abandoned not taken, and the line OF de-
fence is removed perhaps fifty leagues farther In,
capital wards, but at Angostura Pass, on the river
Paraguay. Lopez has been employing hundreds OF
workmen to build for him q palace, as If to defy
both labor and prophecy. At the river, in sight OF
his rising palace, there is battery OF twenty-1our
guns OF sixty-eght pounds, well located where the
river is narrow. The forces OF Lopez are estimated
varously at 1900 TO $1,000 men, The latter figure
Is probably true
Field Marshal Caxias, Communicating Chief Of the
allied forces, is sending force OF 20, 900 men
across the river, below this defence OF Lopez, who
will march by the right bank of the Paraguay river
up TO Asuncon, the capital 1t Is his intention to es
tabish there his headquarters and so outfank Lopez
and it is believed that the latter has not forces at
command to dislodge him.
1t Is predicted that Lopez VIII burn Asuncion, il
compelled to leave it. but this is not history yet and
may not be. From Angostura to Asuncion is only
seven leagues It is said that the iron-clads can
want among the army of occupation after 1t reaches
Asuncion. At the capital there is only regiment
with ten pieces OF cannon.
The ground on the left OF the Paraguayan de-
fences Is OF the most wretched kind being combi-
nation OF thick junges and deep morasses Position
is at present highly favorable to the Paraguayans,
but forces are far superior among the allies both of
men and ships.
1t Is reported that Lopez has now only two chief
officers Resquin and Cabalero, the rest having been
shot pretext or another 1t is also said that
he has put in prison, on suspicion OF disanection,
Mrs. BarriOs, wife OF O late general, and his own
bishop His army has hardly any provision for war
except Implements OF death, fresh beef without
salt being the staple food.
The Italian grnboat Ardlta has lately made a
voyage up to Villeta, nine leagues below Asuncon.
The commander was invited TO Lopezs camp and
feed and feasted and battered until the conclu-
sion was reached that Lopez was not as black as he
was painted that his army has everything really need
full wanting only foreign wines and cotton goods; but
the men are in good spirits and the prisoners are
under the protection OF the law. &c.
Mr.. Gerard +. Gould, English Charge d'Afaires
here, has also gone up to Paraguay on mission to
rescue II possible, many British subjects there who
automatically, not placing himself In the power
Of Lopez at ALL He has returned, and goes by
decisive steps will be taken by the British govern
ment to liberate its Subjects most unjusty detained
member Of the United States Legation, was not an
American except as being Canadian. We have no
lurLner WOru OF fOfJer ". Bliss, VINO was arrested
on trumped-up charge OF conspiracy and taken
from under the very nag ITSELF This outrage on the
United states has aroused all the Ministers Of this
days accompanied by General McMahon, the new
Minister to Paraguay: MI; Washburn, who Just
lowed by all the war vessels OF this station, and
the insult may be made. 1t is very aggravatng to
Americans here that Lopez has very little exposed
not xeiy to be DESTROYED by the allies and that very
soon. Lopez has lost immensely In the estimation
the world y his ang 20 10 h Ges
people. -, -.
with skill and vgor indicative OF complete success
He has gathered about him tried and substantial
men. TO ex-President Mltre he offered the supreme
command OF the army against Paraguay; this post
being declined was given to General Gelly Obez,
the next in command. To several officers OF the late
State. pr. VeleS Sarsfeid has gone to visit General
Urquza In the hope to arrange the present awkward
civil In Corrlenes. President sarmento has COM
menced series OF economic reforms that promise
well for his administration. IL Is refreshing TO an
American to go into President Sarmientos house,
marked by republican simplicity as 1t is, and to see
perhaps 500 volumes OF American books In his library
and for the ornaments OF his house, pictures and
statuettes commemorative Of the great American
Wool is beginning to arrive. The estimate for this
years clip Is 100000 bales $50, 10000 pounds.
ON saturday, october "A, Congress adjourned.
President Sarmiento read to both houses very APP
proprate and brief message the formal act Of closing
publish OF any kind and criticise public ocers
has lust occurred. The world knows that some
months ago ex-PresIdent and ex-Dlctator General
Flores assassinated in the streets In public and
In daylight. Two OF the daily papers-Irt5una and
Ordea-recently declared that they had information
concerning that conspiracy, involving some men
high IN Office and influence. They were arrested for
libel, tired by jury and sentenced 10 pay costs OF
prosecution and to be banished 10 Buenos Ayres for
Six months. The whole proceeding has been novel.
The place OF Punishment, also, 1t Is like banshing
man from Montreal To washington.
TX.
Minister TO the United states.
Congress before adjournng authorized the borrow
ing OF four millions OF hard dollars for the prosecu
ton OF the war.
Money is now abundant and exchange on England
is 49l4d to the gold dollar
BuENos AyREs, Oct %. 1863
We have to-day dates from the army TO the 18th
inst.
The expedition by way OF the chacd twlderness)
on the right bank. OF the Parana, not only met
strong force OF Paraguayans, but also found fortica
TONS Access to Asuncion ia therefore impeded by
the chdcd the right bank and by the LEFT, which
Lopez's main army is lying, with all his defences by
nature and art and the batteries on the shore are
making passage even by the ron-clads difficult and
Doubtful. The iron ads con pass almost any kind
OF fortress here, but they do not do much ut batter
ing down the defences shore. One Of the Brazilian
captains has been made baron for his bold stroke
in passing Paraguayan fort and he is now the
Baron OF the Passage. There Is now chance for
some one to become Baron OF the Battle Baron OF
the Iombardment The improved weather and the
change OF locality have caused the cholera to disap-
pear from the army.
The civil war in Correntes has been arranged
peaceably. The Minister OF State went to the par
Ties aud agreed with them. All the irregularities
are to disappear by designations and regular APP
pointments are TO be made by the national govern
ment. The process was as easy as was that OF Co
lumbus making the egg 10 stand on Its end, and 1t
reflects the greatest honor upon the new admnstra-
ton. There is sacrifice OF law principle, and
even enemies are made to respect the hand that
holds them In wholesome check. Since May last this
civil strife has devastated that fertile province, until
strong national force was withdrawn from Para
ruay for its suppression Already the national gen.
eral was In march, with his artillery In OK carts and
his infantry well mounted, to put down revolution
that goes on horseback, All this Is ended and peace
II now made.
There has just been discovered tremendous fraud
effected by CONTRIBUTING national bonds. IL Is
done in such D way as that the genuineness OF the
signature is preserved, but the sums are altered.
Tie amount Ia supposed TO reach three millions, The
papers say they must be paid: but n the fraud can
he nrouod do mot ace how IL will follow that they