THE WAR IN CHILLI.

Southland Times, Volume III, Issue 199, 8 January 1866, Page 3

THE WAR IN CHILLI.

5 The Daily Times publishes the follow ' ing letter written by an old resident i 5 Dunedin : — i- Valparaiso, 26th Sept., 1865. i When I arrived here, everything wa ■ quiet, but about a fortnight since ; i special steamer arrived from Oallao, wit news that a difficulty that had existei , between this country and Spain, am which had been supposed to have beei settled, was re-opened. This was followe* last week by the arrival of Admira Pariga with several ships-of-war, ani Chili refusing to treat on the term; offered, this port is now under blockade as are also the other chief ports of Chili Hostilities commenced on Sunday, thi 24th inst., and the excitement increase daily. Ten days only are given to neutra ships to clear out ; meantime, incoming ships are stopped and sent away again although some have managed to run in Still, as Chili can make no show agains the Spanish fleet, it is no good running -the blockade, which means simply to b< cut out and made prizes of. This after noon, nearly every shop is closed in th< business part of the town, and the place is beginning regulary to assume the look o: a beleaguered city. My own opinion is that at the expiration of said ten days the Admiral will offer again to treat witl Chili ; but from the temper of Government and people, I do not think anything will be listened to, and I quite exped that most of the national vessels ir harbor will be cut out, and either burnl or made prizes of; and if any oppositior is shown, I also think the port will be destroyed.. The railway which runs along one part of the coast of the N bav will, I anticipate, be the next object oJ attack; and if the Chilinos will not submit without, I think there will be a bombardment of Valparaiso. - It is hard to get at the merits of the question ; but anyhow, Chili knows and shows hei weakness, and it would be wisest to have caved in at once. Now the bill against her increases daily. Business is at a dead lock. On Saturday, the Bank oi Valparaiso, and I believe all the othei banks, suspended specie payments. Today, I hear, the banks of Santiago have followed a similar course. There is a certain amount of business doing, consequent on the dispatch of the vessels in harbor, everything else is stagnant and there are neither buyers or sellers. The greatest fear is not to be anticipated from the Spaniards, but from the large number of laborers who will, at the expiry of ten days, be thrown out of employment ; and once these are hungry and have no means, — for they are a notedly improvident race, — violence and robbery are anticipated ; and it will undoubtedly be their internal trouble that will bring the Grovernment to reason, although being 120 miles inland at Santiago, and far from much of the pressure from without, Valparaiso and the seaports will suffer much the worst. 28th. The blockade continues, and the fears are as great as ever. It is generally thought the Admiral will bombard after short notice, when the days of grace are expired, if Chili does not submit. My own idea is as formerly stated, although I am afraid, from day to day, that these stupid people will perform some act ol aggression, petty in itself, but which will nettle the Spaniards, and precipitate more active hostilities.