The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-10-02
PERU.
Financial NEUTRALITY-SUSPICIOUS. Of New Rail-
Y0ads-The Guiana Trade.

Financial SI,.sters--ConstructIon Of New Rail-
r0ads-The Guiana Trade.
LANA. Aug ust rs, 1869.
The question OF the loan proposed 60 the govern
ment by the house OF Dreyrus Co., OF Paris, OF
which an explanation was given In my last commu-
nicaton, sim occupies public attention. the
Supreme Court, before which the matter was laid, IS
busily engaged In examining the laws on the subject
and it is the general opinion that decision win be
given against the foreign house and In favor OF the
Peruvian capitalists, WAC OFFER the government an
equal sum OF money upon far more adyan-
tageous terms. The Cabinet is divided In opinion
the President ana the Minister OF Finance being
strongly disposed towards accepting the prop osa
OF Dreyfls, while the Ministers OF Foreign Affairs
the Interior and of Justice as firm III their oppo
sItion to the measure. In fact tue law cOnceding
10 Peruvlans the preference IN any negotiation
ating to guano Is SO well defined as 70 leave little
or no DOUBT concerning the parties entitled TO max
Ing the loan; the question Is, Is better Tor the
nation TO he the Debtor of one creditor or of hty.
The supreme Court prohibited Mr. Dreyfus' departure
from the country by che last steamer alleging that
his presence was indispensable under the clreuu-
stances.
The important railway to connect Lima with the
Peruvian beaawater5 OF the Amazon, about 100
mics from the capital, wIl soon be commenced Mr..
Meggs rad made very advantageous proposals To
the government to undertake the Instruction oil
the road but Colonel Daita decided TO try the
perunent OF building IL himself and employing 900
soldiers as labofers oa the route. Mr. g. - Backus,
received orders TO proceed immediately with the
work and has already broken ground. The road
runs IRON Callao to Lima and from Lima,
through the pass OF the Oroya to village called
Jaa very near the head OF navigation on tue river
ChancnanayO, which connects directly with the
great Amazon. 10 passes through a most fertile
country, and by enabling the Inhabitants profit
ably export their produce VIII be OF great benefit,
although no one dreams that the line VIII DO more
than pay expenses. 10 Is supposed that The or
the trOad Wil be about IS 900 600 OF soles ana 1t
more than probable that the government VIII reln
quish Its experiments when the really difficult sec
tons of the road aie reached.
Tne guano at the Guanape Islands IL steadily i'm
proving IN qualify as the cuttings descend ana hopes
are entertained that IL Will prove but little Inferior
10 the better known fertilizer from the Cmcbas. The
company chartered by the government for the pur
pose Of loading the ships ~ now Iuy organized and
with The ana OF several new appi2uCes nnds IL pos
stole TO Improve on the Clncha plaI; The ships lay
directly alongside OF the Guanape Islands, ana by
means OF leather anc canvas nose the puano rs
shot from the cliff into the hold of the vessel
and nearly three thousand tons embarked daly.
me principal difficulty is copcernng me provisions
and water required Tor the shipping, ali supplies
nave to be brought from the mainland, ana
qucatiy the expense rs very considerable. The
slanuS are estimated 10 conLa nearly 10000 OF
tons or x2l0 and the stock at the ChiHcBas Is
reduced 10 15S,Q00 tons. Even however when these
deposits are exhausted large beds or the fertilizer
exist along the southern coast OF the republic and
Peru can sui count upon THIS invaluable addition TO
her wea, tn for maay years q come. The GuaDape
Islands are situated about $50 miles north from Call
lao and about twenty from the mainland