The New York herald., 1868-06-16

draw an equal amount of United States notes."
To this Mr.. Morton gave notice he would move
to add that the notes thus retired ''shall
not be obtained from the sale of bonds, but
shall be taken from the funds in the Treasury,
collected in the ordinary way" After a
lengthy debate, during which the Senate re-
fused to lay the bill on the table until after
the Presidential election, Mr.. Morrill's amend
ment was rejected by vote of sixteen yeas
to twenty nays. This result is signif-
cant, as showing that the Senate does not
favor any further contraction of the currency.
Our Spanish-American Neishbors-The War
in Paraguay.
The letters which we published yesterday
from our correspondents at Rio Janeiro, Bue-
nos Ayres and Vera Cruz, show that our
Spanish American neighbors are in what ap-
pears to be their normal state of military and
civil confusion. The latest intelligence that
we have from the seat of war in Paraguay is
contained in cable despatch published in
to-day's HERALD. The allies had assaulted
the rear of Humaita for the purpose of gaining
possession of the forest of the Gran Chaco and
thereby cutting off the communications of the
Paraguayans They were repulsed at every
point and were compelled to abandon the
assault. The siege, however, continues, the
fort being closely invested by land and water.
Lopez himself is strongly fortified on the river
Tebicuari with an army of ten thousand men,
He is not intimidated by the loss of four-fifths
of ,;n,s- =
evidently unskaken in his people, who adhere to
him as firmly as in his palmy days, though they
are obliged to dress in skins and live on fruits,
with fresh beef roasted ut the camp fire and
with native tea, drunk from native gourds, tor
their only drink. The satisfaction of fighting
for their country is their only pay. Their heroic
resistance, whether successful or unsuccessful,
will be forever memorable. The rumors that
the government of the United States intends
to interfere and demand that there shall be no
change of government in Paraguay without the
consent Of the people themselves, are gaining
the Paraguayans.
President Mitre, of the Argentine Confede-
ration, will probably be impeached as soon as
the Congress shall assemble. Meanwhile as he
is at the head Of the army in foreign country,
and as the acting Executive is his especial
friend, he will be apt to postpone his return
for trial until the exigencies OF war permit.
His impeachment would, in all likelihood, open
an embarrassing revolutionary period for the
republics of the Platte.
But what most directly interests the people
of the United States is the revolutionary con-
dition of our Mexican neighbors. The pronun-
ciamiento Of Rivera, of which we published
yesterday full translation, is but one of many
indications Of the concerted opposition against
President Juarez as O usurper on the part Of the
very chietains who united with him in sue
cessful efforts to drive away from Mexico the
is soundly abused in the proclamation of Rivera
as having, Through unutterable misfortune"
attained power In time Of turbulence and re-
volt as having governed always dctatorially,
with no other limitation than his own will and
ambition; as having purposed and successfully
endeavored to destroy the constitution, and as;
having continued in command of the people
without authority from the people, without
legality without election-the fountain of all
legitimate power-making the republic his patri-
mony and Mexicans his slaves" The chaotic
and revolutionary condition Of Mexico could not
be more strikingly. illustrated than by this pro-
clamation Of Rivera against Juarez, supported
as II is by the open or the indirect sympathy Of
almost all the leaders Of the so-called liberal
party in Mexico. Thus our latest news from
Mexico confirms the opinion which we have
often expressed-that in dse time the Mexicans
themselves, admitting their incapacity for SELF
government, unless subjected to the enlighten-
ing and strengthening Influence Of the repablic
Of the United States, will invoke annexation to
this great republic as the Gnal remedy for oil
their woes
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