The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-07-02
The Montijo Returned to Her
Owners.
Decline Of the ISthmuS---UnSetted State
Of Colombia.
The Panama Railroad Subvention- Proposal
Of the Company to Withdraw II.
UNSATISFACTORY RELATIONS WITH ECUADOR

-r PANAMA, June 20, 1871
The Isthnlus has once more resumed Its wOnted
quiet. All political excitement has Tor the n0nce
died away. The troops called into service during
the late revolution have been disbanded and their
arms disposed or and the steamer Montijo has been
returned to her rghtful owners Now that the fan
dango Is over the more serious business Of paying
the expenses OF the fr0ic comes up and q serious
business II IL indeed for the State Panama with
her empty treasury and mOrtgaRed revenues.
The late revolution Will cost this State at
least one hundred thousand dollars, without
any visible benefit accruing either to tndi-
viduals or to the country therefrom, II
we except the few who may have speculated IN
arms and soldiers uniforms. This enormous debt,
uselessiy incurred, must be paid, ana means VIII be
found to liqudate It, though the government cannot
af1ord the petty sum required salary for the
teacher OF primary school or pay the paltry bills
incurred each month for lighting the city with gas.
To have expended Onetenth of the amount in State
public improvements or for charitable purposes
would have been cried down as an outrage not to
be borne with; hut revolutions being, an institution
OF the country, must be supported at any cost
The MOntijo, as aforesaid, has been returned to
her owners, Messrs Schuber 4 Brother. after two
months detention In the rebel service The ques-
ton OF indemnity is to be decided by arbitration,
Messrs. Schuber Il Brother appointing one and
President CorreosO another. These two name q
third or umpire. The entire matter has thus been
taken out OF the hands OF the American Consul.
which, on the part OF the owners OF the vessel is
certainly very prudent move. From the State
government they may recover some remuneration
be 1t little or much-whereas If the claim was lelt
for adjustment at BOgota it would likely remain
open for years, and il closed any indemnity agreed
upon might be left as grandcld's legacy
the present generation would never see
ana <Nf
or a New York firm. which were consigned to
commercial house in Panama on commission and
were appropriated by the government and used
during the revolution. have been returned to Mr.. w.
F. Kelly, the representative Of the owners and
$4,000 paid for the use OF them. The arms and
ammunition OF the rebels consisting of about three
hundred Remington rines, with suitable cartridges,
which were deposited with the British Consul when
peace was declared. together with 500 Remington
rifles purchased in New York by Mr. LOsa for the
use OF the government and received here two
steamers ago, have been sold TO the same Mr. Kelly,
who intends shipping the entire lot to Central
America by to-day's steamer destined osensbly for
Costa Rlca and Salvador. but doubt intended for
Guatemala. where improved or modern arms are
now much In demand.
With the close OF the revolution business in this
city revived little. The last steamer from Buena-
ventura brought up large number Of merchants
Valley OF the Cauca, 70 purchase goods IN Panama.
At least one hundred thousand dollars were wanted,
but comparatively speaking, none were to be haa.
The stocks OF the few firms remaining liz business
are run down so low that even IA Cauca mer-
chant cannot find in this city an assert
ment sufficient from which to repiensn the
stock OF his little village store, but Is
obliged to forward orders to the United States or
Europe for what he requires. A few years ago the
merchants OF Panama were sufficiently numerous
ana their stocks ample to supply all OF Central
America. but the change has been sad one--nearly
the last one OF the large drv goods establishments in
this city, Furth Co., closed Its doors last month.
badly managed transit enormous lreghts. revOlu-
tons ana consequent heavy taxes account lOr all
tnls. The value OF property IN Panama Is
decreasing in proportion TO the decline in
business, and since the beginning or this year
rents have fallen thirty.three per cent
where few years ago store or residence
could not be had Tor love money nnumerable
houses now lie vacant. What the mture Of tue
anything but promising. The IOng-cherished hope
of an interoceanic canal seems now to be OK.
plcded. The South American trade, as will be seen
by the following Statistics has been diverted from
our railroad The Pacific Railroad takes the vau-
able portion OF that IRON California, aud the Gen.
trail American business, on which We now most de-
pend, will take the course OF Honduras and Costa
Rlca when the railroads in those countries are
finished.
The following statistics, compiled from reliable
data, show the rate At which the decline of the trade
from the South which used To come this way has
gone Take The years 1868, 1869 and $780, and We
get data Tor the comparison OF the cargo movements
Tor Europe in the Pacific Steam Navigation Com
panY's steamers arriving ut Panama.
ON MARCH OF
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