WAR IN CHILL.

West Coast Times, Issue 104, 17 January 1866, Page 3

WAR IN CHILL.

(From the Valparaiso La Paine, September 28.) By tho arrival of tho American barque Matins &alvinius, Cant Douglas, from Valparaiso, wo have dates to tho sth October, containing important news respecting the blockade of tho ports of Chili. Spain, Inking advantage of our undue c nudenoo in her good faith and fidelity to her obligations, has attempted to set her foot on our nation. She will bitterly rue tho (lay. Our offence was •that, penetrating her designs against tho independence of her quondam colonies, wo have dared to speak out and resist her filibustering advance's that sho may return to her prey in Peru, relinquished for tlio moment. She dreams to crush Chili in order to remove an obstacle to her ambition. Wo look for tho moral, if not the material, aid of tho countrymen both of Canning and Monro, and trust wo shall not bo disappointed, although, in any case, we mean to resist to tho death. -To tho surprise v of all, tho intelligence was brought on tho 11th instant by an extra steamer from Callao, lhu,t tlio arrangement made in May last had not beeivapproved by tho Spanish Government, and t'uit ihe whole ques-" turn was to be ro^opened by the admiral in command of tho Spanish squadron, Little, " however, wa.'i anyone prepared for tho sudden and peremptory policy which has since boon inaugurated by the Spanish agents in the question. Admiral Pareja arrived on the IBlh. Ho inv.nodialoly made demands on our Government, not. that tho .negotiations should bo resumed,' but that reparation fmonld bo made for tho oftence.s given. Cor-, tainly, if summnrinoss be a virtue, that quality cannot bo denied to belong" to the Spanish commander in a preeminent degree, lie. sent in his despatch on the flay of iho national independence, calling for an apologetic salute io his flag, to which ho would reply, and then commence negotiations. That is, that Chili should make amends, and then negotiate whether amends were duo; The choice for tho Government was bard. Should tho prosperity of tho country bo compromised, or should tho nation's honour be suciiuced? The President has elected tho former alternative. • Spain has asked degrading terms of Chili, and cannot obtain them. The representatives of foreign nations, who may bo accounted iinpnr tial in the case, have disapproved of the policy pursued- by tho Spanish admiral' plenipotentiary, am'Lprotcsted against all hostile measures "hat ho may commit, affecting tho interest of citizens of their respective countries, on tlic ground that ho has exceeded his own instructions. In his reply ho contents himself with as:*eiting that their Government would have dona as ho is now doing 1 . It is about two ye as since, the Spanish squadron, consisting thon of two frigates and a steamer, camo into tho waters of tho Pacific. They were received with no misgivings ; but on the* contrary, with the liveliest welcome. The admiral and his officers were entertained at pubjic bnnquets hero and in Santiago. A national pride was felt at the prospect of a cordial reunion with tho mother country. Tho Spanish admiral, Pinzon, uttered some ungracious expressions, it is true ; but these were received as splontL, rather than as tokens of ill, Tho ships went hence to port, and no fears were entertained until Pinzon Mtmrodo seized the Guano Islands, in reassertion of the territorial rights of iho Crown of Spain, which they further elucidated by going on to sny thero had been a truce for forty years between tho colony and tho mother country. That was tho match tlrnt ear sod tho explosion. Chili v;asalarmed. South American independence, as a principle, was assailed Spain furthermore, had sent to Peru n commissary to negotiate, which was of old tho title of an inspector of a colony's- affairs. From % that hour trouble was brewing. After Peru had made no effectual resistance, Spain, obtaining a treaty of settlement, gave up the island. Then tho Spanish Minister iv this country complained that Chili had manifested n disposition inconsistent with neutrality ', had fivvored Peru ; had allowed men to bo shipped for tlio Peruvian service, as well as provision and coal. Whereas Spanish ships had later,, on being refused supplied nnd coal by public decree, been forbidden to bo exported for tlio use of either party, because tho hostilities were do facto existing between them, Thero also was a question of popular outcries against the Spanish ilng iv Santiago at tho house of tho Minister. After those complaints had been discussed tartly for some time, tho Spanish Minister rather suddenly stated. that ho was satisfied with tho declarations of the Chilian Secretary of State. Tho affair was considered at an end, and commercial affairs, that hud been seriously deranged', resumed their prosperous way. Lato events, howovqr, have rovorsod them all. Admiral Pflvejn arrived on tho 17th and sent in hi^'despatch* on tho 18th, demanding satisfaction and making threats that he should, within forty days, proceed to extreme measures. lie received a reply, refusing 'to accede to .th<?s& peremptory demands oh tho 22nd. ; Immediately lie forwarded an ultimatum that hostile nuMsmros should next day 1)0 tidopted., Tl". 1 reinonstniuet} of j,h<?

diploin: t c corps obtained a delay of a few hours. On tho 24th the blockade \n:s began at six a.m. The Government has been taken entirely by surprise. Tlioy had not imagined for a moment that Kpaia would remnliato tho action of a Mi'iisUr. The heart of the nation beats bravely on ihe land, v l trt an overwhelming force occupies the wa er3. Tivo steam frigates are blockading Calderu (the Blanca and the Beronguela), another, the Marquis do la Victoria, is at Coquimbo, while tho Itcsolucion'nnd Villa do Madr.d, each forty -two guns, with transports, occupy the outer roadstead of this port. \

Congress in both Houses passed at once tho declaration of war, as proposed over tlio signatures of the President and all tho members of tho cabinet. A loan of twenty, million dollars has been authorised and unlimited power granted to the Executive for raising troops and procuring ships for tho defence of tlio country. Unfortunately there is no commander-in-chiefof either the French, 7hi<?lish, 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 ho may havo been detained at Callao by tlio progress of the' Peruvian revolution" Tho diplomatic corps have acted Avith promptitude. Mr Nelson, tho "United States Minister, has led the way, speaking with decision and manifesting a generous sj'nipathy with Chili in the aggravated ill-ticatment to which she has been so ruthlessly subjected. 11.15. M.'s corvettes Columbine and Mutine, are at anchor in the bay. The French and English storeships havo requested to change their moorings, to get out of tho range of lire from the Admiral's ship to the fort, Humors prevail in town that he ( will fire oil 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 ihe country for safely in consequence. Business, as may be supposed, is for tho time prostrated. Public securities and stocks havo gone down to the most nominal rates.

The National Bank Ims boon authorised to issuo four ami a half million dollars in bills, not payable in specie until tho end of January. The ollunr banks woro compelled to suspend specie paymenls-soveval days ago. The steamer San Carlos arrived last evening 1 , the 27th instant, from Taleahunno, running the blockade. The West Australia, Adam Sodgwick, and Tsmyr,' British vessels, and Napoleon 111., French, have conic insinco the blockado commenced* The Admiral maintains, however, that they must not #0 out again, since he has control of tho on tiro harbor. It is understood that the Santiago, British steamer, looked for daily from Kn^land, will bo allowed to corny in, and also the mail steamer from the north, due on the 29 ih, to sail October 2, but of lor that tlio port will be closed. The Chilian (rover:im:nt and people declare that they will not in any case submit to tho unjust conditions proposed by Admirul'Paiqja, come what may. Admiral Pareja declares tho ports of Chili under' blockade. This is simply preposterous. 110 ha:i not ships • enough to close more than three ports at ' the most. - The Chilian corvette Emerald and the steamer Maipu slipped out of port on -the night of the 10th. . It is only surmised whither they, may have gone ; some Bay to Callao, some to the Atlantic. They wero well maimed and found.