THIS CHILIAN BLACKADE.

West Coast Times, Issue 108, 22 January 1866, Page 3

THIS CHILIAN BLACKADE.

The. " Otago Daily Times" of Dec. 25 publishes (he, following letter from a correspondent, dated Valparaiso, 20th September :—: —

"When I arrived here everything was quiet, but about a forlnigiit since a special steamer arrived from f'allno, with the news that a difficulty that had existed between this country and Spain, and which had been supposed to have been settled, was re-opened. This was followed last week by the arrival of Admiral Pariga with several ships-of-war, and Chili refusing to treat on the terms offered, this port is now under blockade, as arc also the other chief ports of Chili. Hostilities commenced' Sunday, tho 2-lth insl., and tho excitement increases daily. Ten days only are given to, neutral ships to clear out ; meantime, incoming ships are stopped and sent away again, although some have managed to run in. Still, as Chili can mako no show against tho Spanish fleet, it is no good running the blockade, which means simply to be cut out and made prizes of. This afternoon, nearly every shop is closed in the hw>iness part of tho town, and tho pl^co is beginning regularly to assume the lookof abeleagured ci'y. My own opinion i , that at the expiration o/said ten days, tho Admiral will often 1 again to treat with Chili ; but from the temper of Government and people^ I do not think anything will be listened to, and I quite cxpec.t that most of tho national vessels in harbor will be ' cut out, and etiher burnt or made prizes of; and if any opposition is shown, I also think the port will be destroyed. The railway which runs along one part of tho coast of the bay will, I anticipate, bo the next object of attack ; and, if the Chilinos will not submit without, I think there will bo a bombardment of Valparaiso. It is hard to get at the merits of tho question ; but anyhow, Chili knows and shows her weakness, and it would be wisest to have caved in at once. Now tho bill against her increases daily. Business is a! a deadlock. On Saturday, the Bank of Valparaiso, and I believe all tho other banks, suspended specie payments. Today I hear the banks in Santiago have followed a similar course. There is a certain amount of business doing consequent on tho dispatch of the vessels in harbour, else everything is stagnant, and there are neither buyers nor seller*.

Tho greatest fear is not to bo anticipated from the Spaniards, but from the largo number of laborers who will, at the expiry of ten days, be thrown out of employment; and once thoso are angry, and have no moans, for they are a notably improvident race, violence and robbery are anticipated ; and it w r .ill undoubtedly be their internal troubles that will bring tho Government 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.

!21Uh. — Tho blockade continues, and the fears are as great as' ever. It is generally thought tho Admiral will bombard after short notice, when tho days of grace are expired, if Chili does not submit. My own idea is as formerly stated although I am afraid from day lo day that those stupid people will perform some not of aggression, petty in itself, but which will nettle ' the Spaniards, and precipitate move active hostilities.