The New York herald., 1869-03-18

asking permission. has greatly embarrassed tho
A steamer has arrived to-day with mails from
a,suncion Dut win very litne news and
s siiat mostly OF negative order. the
allies wore quietly encamped at AsuDci0n
and showed no intention OF entering upon
any operations against Lopez. and they were ap-
parenty waiting Tor instructions aS to what course
TO pursue, Notwithstanding that has partes were
showing themselves IN the low country and sweep
ing on The lew individuals who had not yet 0beycd
his orders to leave Tor the mountains. 1t IL even
said that the Brazilian outpost at Lugue, twenty
seven miles lrom Asuncion. had been Withdrawn IN
the neighborhood OF that small town.
According to the latest accounts Lopez was stil
gathering men and was able TO muster 5000. But
sucn figures are all guessing, as nothing reliable can
be learned In regard to him. All that Is really
known rs that he intends holding ON to tho govern
have entirely abandoned that part of the he country
which the allies can enter. Whether II be through
patriotism or fear Il IL certain the Paraguayan people
are all with MIN, and thai II the allies set up pro-
visional government IN AsunCson 1t viii be one
without people to govern.
The whereabouts or General McMahon Il also I'M
known, but ne Is supposed to be with Lopez, and
tnat the italian and French C0nsuls are also with
nim. The gunboat Kansas arrived at Asuncion on
January with dispatches for the Minister, bur
could not deliver them. She was hard aground near
AsunciOn. but doubtless would get or in Q lew days
General Mcliahon's unpopplarsv In La Plata. and
especially Brazil, continues intense. A Brazilian
gets excited II you mention the word Mc1iahon.
and ne Is apt to indulge in strong language over his
conduct. Undoubtedly the deception was great.
Mcmahon and the gunb0ats go up 70 Paraguay 70
the srazians Confidently % Seiesed inI that so those
mount the vessels on wheels and hunt him
stead OF which Mcmahon becomes his dearest
friend, and Is believed to be buoylng Lopez up to
such Is the view taken OF his action in BRAZIL and
there Is certainly color for the belle and II q not
promoting cordiality towards the United States.
was second in command ut Angostura, Is expected
here tomorrow as, although not Q prisoner, he Is
bound BY the terms Of the captulation not to serve
ia the present war. IL appears however, that
number OF Paraguayans belonging to the capitulated
garrison have succeeded In making their escape and
the steamer just In from Montevideo brings the
news OF the suspension of the Montevidean Bank, 1t
qured by the suspension decree OF July last 1t was
the frsr to cry out for the resumption OF specie
pay on the 1st OF June 1858. with the purpose
ever, Went quietly into liquidation. refusing to at
tempt what was soon found an impossibilIty by the
other banks. 1t Is SAID the Maus Bank made largely
by the crisis, BY Importing large sums OF gold and
buying Its own bills through agents at heavy dts
count.
feeling anxious over the finances. not knowing what
policy the. governments intends to take
WITH with regard dS 70 the strange situation Of
new loan or issue Of paper money The state
OF the treasury Is also completely unknown, which
keeps up great uneasiness. However, the exports
OF cotton and colee have been large, and this has
caused exchange and gold to fall i've per cent But
as large drafts are expected from the River Plate the
rise in the value OF currency can be only temporary
and most bansing men anticipate considerable fur
ther depreciation, Notwithstanding the TACT that the
co.iee crop Is judged to be an average and not
withstanaing the unusual poslponement for SIX
weeks OF the rainy season.
The report OF the engineer upon the junction by a
railroad OF the upper san Francisco navigation
with that Of the lower river is very favorable. The
ground Is not difficult, anu the Improvement OF parts
where some distractions exist In the river bed,
which can be utilized, are estimated at only
Sl,00o,000. Probably the railroad would cost vs.
much more.
The san Pauio Railroad Is still advancing In its
prosperity, its receipts steadily increasing, and IN
December the surplus OF receipts over working
was x52,o o00 and IN January must have been
$4,000 more. A great part OF this advance
Is due no doubt TO the greater favor the railroad s
growing into with the planters, many Of whom
thought II 100 new-fangled and too unaccommodat-
ing 10 eisurely habits but good deal IL due TO the
ing ground, apparently without trenchng on the
coffee crop, and the far prices aud good yield this
season are encouraging. The export, however, had
only reachcdast year 10 tie number OF about 100 900
bales, equal TO about half that number OF customary
Southern bales.
The Pedro ii. Railroad IL gathering advantages
from rs agreement with the Union anu Industry
macadamdzed road, and by the first f0rtnight's re-
turns VIII add thirty per cent 10 It's gross revenue.
The flagship Guerrero goes down TO the River
Plate In day or two, somewhat unexpectedly, as
she was TO stop here for tinie What is the reason
have not ye; heard.
Sovereigas are worth 13l20o making gold las.
Exchange is lSesd. TO the milrels.