WAR IN CHILI. CHILIAN PORTS BLOCKADED BY SPAIN. WAR DECLARED BY CHILI AGAINST SPAIN.

Evening Post, Issue 269, 18 December 1865, Page 2

WAR IN CHILI. CHILIAN PORTS BLOCKADED BY SPAIN. WAR DECLARED BY CHILI AGAINST SPAIN.

By the arrival of the American barque Matias Salvinius, Captain Douglas, from Valparaiso, we (Southern Cross) have dates to the sth October, containing important news respcting the blockade of the ports of Chili. We give the following from an extraordinary of La Patria of September 28th :— Spain, taking advantage of our undue confidence in her good faith and fidelity to her obligations, has attempted to set her foot on our nation. She will bitterly rue the day. Our offence was that, penetrating her designs against the independence of her quondam colonies, we have dared to speak out and resist her fillibustering advances that she may return to her prey in Peru, relinquished for the moment. She dreams to crush Chili in order to remove an obstacle to her ambition. We give the facts as they have occurred, with the despatches and declaration of blockade and bespeak for our country the sympathies of all who love the right of Americans to hold and govern America. We look for the moral if not the material aid of the countrymen both of Canning and Monro; and trust we shall not be disappointed, although, in any case, we mean to resist to the death. To the surprise of all, the intelligence was brought on the 11th inst., by an extra steamer from Callao, that the arrangement made in May last had not been approved by the Spanish Government, and that the whole question was to be re-opened by the Admiral in command of the Spanish squadron. Admiral Pareja arrived on the 17th and sent in his despatch on the 18th, demanding satisfaction and making threats that he should within 40 days proceed to extreme measures. He received a reply, refusing to accede to these peremptory demands, on the 22nd ; immediately he forwarded an ultimantum that hostile measures should next day be adopted. The remonstrance of the Diplomatic Corps obtained a delay of a few neurs. On the 24th the blockade was began at 6 a.m. The heart of the nation beats bravely on the land, but an overwhelming force occupies the waters. Two steam frigates are blockading Caldera, the Blanca and Berenguela; another, the Marquis de la Victoria, is at Cpquirabo, while the Resolucion aud Villa

de Madrid, each 42 guns, with transport, occupy the outer roadstead of this port. Congress in both houses passed at once the declaration of war, as proposed over the signatures of the President and all the members of the cabinet. A loan of twenty million dollars haa been authorised ; and unlimited power granted to the Executive for raising troops and procuring ships for the defence of the country. Unfortunately there is no Commander-in Chief of either the French, English, or American squadrons on this part of the coast. The British Commodore is looked for daily with anxiety and surprise at his non-appearance. It is apprehended that he may have been detained at Callao, by the progress of the Peruvian revo lution. H.B.M.'s corvettes Columbine and Mutine are at anchor in the bay. The French and Euglish storeships have been requested to change their mooring, to get out of the range of fire from the Admiral's ship to the fort. Rumours prevail in town that he will fire on the fort, on the railway station and on the custom-house stores. Some even say that he intends firing on the town itself, and families have removed into the country for safety in consequenceBusiness, as may be supposed, is for the time prostrated. Public securities and stocks have gone down .to the most nominal rates. The national Bank has been authorised to issue four and a half million dollars in bills not payable in specie until the end of January. The other banks were compelled to suspend specie payments several days ago. The steamer San Carlos arrived last evening the 27th inst , from Talcahuano, running the blockade. t The West Australia, Adam Sedgwick, and Ismay, British vessels, and Napoleon 111., French, have come in since the blockade commenced. The Admiral maintains, however, that they must not go out again since he has control over the entire harbour. It is understood that the Santiago, British steamer, looked for daily from England, will be allowed to come in, and also the mail steamer from the north, due on the 29th, to sail Oct. 2nd, but after tha* the port will be closed. The Chillian Government and people declare that they will not in any ease submit to the unjust conditions proposed by Admiral Pareja, come what may. The Chillian corvette Emerald and the steamer Maipu slipped out of port on the night of the 18th. It is only surmised whither they may have gone ; some say to Callao, some to the Atlantic. They were well manned and found. The arrival of the* Matias Salvinius this morning (9th instant) at Auckland, bringing news of the blockade of the Chilian ports by the Spanish fleet, in consequence of war having been declared, caused some little sensation amongst the importers of breadßtuffs hre. The price of flour, however, has not been raised ; but the news has given a firmer tendency to existing prices. Chilian flour may be quoted as worth £24 wholesale, that is in large quantities, and J636 in small parcel s, namely a ton or two. Adelaide flour may be quoted at £27 per ton in moderate sizee parcels. It is impossible to say what will be the effect of the news by the Matias Salvinius on the Australian market, and until that is known, holders of flour here wil 1 be cautious. — N. Z. Herald.