The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-21
ORIENTAL REPUBLIC.
Gold Crisis at acknowledgements
Charged with the TroubIe-POlice and Other
Observation-Disclosures Trouble with Brazil
and AunfhilafiOn Of the Little Repubiic-Ncws

PrecautiOss-Pr0bable Trouble with Brazil
and humiliation Of the Little Republic-Ncws
from Hnmaita.
BUENos AyREs, s. A., June IL, 1865
have never written anything about the money
war ut Montevideo. II has now assumed such pro
portions and threatens such results as to warrant the
worlds attention. In November, 1861 It was evident
that crisis in gold coming, and the issues OF
all the Gve or six banks Of Montevideo were SO far
beyond their gold basis that it became certain that
run would endanger all and destroy some. Gen
era venancio Flores, then dictator, issued q decree
closing the banks and forbidding the payment of
gold for six months making il then obligatory. The
term closed June l, and as the day approached
various modes OF evasion were devised but all were
rejected and the day OF payment came. For
two days before the excitement was intense.
Meetings were held In the public squares, the
police force was strengthened, the military were
under arms, about eight hundred marines from the
foreign vessels OF war landed and posted in the
custom houses and various other public buildings
and the banks had on the day OF resumption double
guards within and without. On June I, at q late
hour, all the banks opened but that OF Maua Go.
The throng before the banks was great, noisy and
threatening. Some banks paid promptly and others
posted paying clerk, admitted one bill holder at
once, took an hour to count up all the figures
and 30 served from five to ten customers day,
while the crowd afterwards daily increased These
delays greatly exasperated the people, so that the
guards are still needed and violence IL still feared
The people said this was practical refusal 10 pay
clerks shut Its doors and sent its books the court
for examination II was found that the hank had In
not enough OF gold at the moment for ts circulation
Baron Maua has issued Q very severe manifesto
charging all his calamtes on the government, which
owes him some millions. The Minister has replied,
defending the policy Of the government.
The upshot may be, nrst q claim for some millions
for damages TO Baron Maua h Co., OF Brazil: sec.
ond, the inability Of Uruguay TO pay and enforce
men OF the claim by Brazil: third. the forcibe col
lection, as did France In Mexico or as did Brazil
the Brazilian debt provided for, and the Brazilian
faction placed In power; fourth, should another
war grow ont OF the triple alliance Brazil will then
he ready TO swallow one OF the allies and the better
defy the other. Remember these are suppositions
only, but they seem to many here to be the shadow
Every day the friends OF this war decrease while
iis slow progress Is wearying and exhausting the
country. The latest word Is o formidable recon-
nolssance towards the river reblcuari, near which
Lopez IL supposed 10 be. at Lambrl, erecting new
deences. The fort Humaa 10 quite cut on from
supplies. The allies In the Gran Chaco have resisted
all efforts 10 break their lines The iron clads near
the Tort play on IT when they like and o few days
ago fearful explosion occurred In the fort by the
DloWing up OF magazine, as was believed, by
shell from the neet II did great havoc II the sound
and the nre are evidence.
President Lopez has advised all the people to re.
TIRE from Tue capital, Asuncion. AZ the city is on
the river and Unattended II IL Mt the mercy OF the
lfon-cads All movable property and all records
are removed aud small force ID left only TO guard
Tue closed h9pseS. anyone Ia seen attempting TO
enter house ne - shot instantly. The little town OF
buquc lew miles Inland from Asunci0n, IL selected
az the temporary capital. Lopez hold on the peo-
pie does not diminish. Indeed, It appears that all
the CIVILIZATION OF The country has tended TO refine
and strengthen me native mplacibility OF the Indian
character SO that TO conquer Paraguay appears TO
DE practical impossioty. The bulk OF the people
OF PARAGUAY are mixed spanish aud Indian (Guarini)
oiood. FOR Tue hrst century OF Spanish possession
no spanish or other white woman went to that re-
glon. me usapes, traditions aud character OF the
people arc motley. while good blood has slowly
people.
The excitement over the Presidential election does
not abate. We are on the eve OF counting the elec.
t0ral votes ana yet We do not know what IL 10 he
the result. hope to inform you by the
mail, and so omit spcculations.
The American steamer Cumbra has been sold here
for transport steamer for t2s, 900 gold. she be.
longed 10 the south American Marine Railroad and
steamship Company, and n well sold
The impeachment " President MItre has NOT vet
been brought w, and ~ MAJ yet get the 10 BY. A