among the merchants, as they are received in payment of onehalf of the duties. No distinction is made in favour of the trade of any nation, save only that the British merchants have some peculiar facilities granted them in relation to their letters, which are an object of taxation, at least so far as applies to those sent out of the country.

In the official statements given to us, to which I beg leave generally to refer for information as to the foreign relations, the productions, military and naval force, revenue, and population, the latter is stated at 1,300,000, exclusive of Indians. This is understood as comprehending the population of all the provinces; but, as some of them are not under the government at Buenos Ayres, I have thought it proper to annex the several estimates I have collected of the population of each province, as they may serve to give some general information on that point. The most immediate difficulty felt by the government, whilst we were in the country, seemed to arise from the want of money; for, although the debt was small, their credit was low. It had not been found practicable to adopt a system of finance adequate to the exigencies of the times, though it would seem, from the statements given to us, that the revenue of the last year exceeded the expenses. The important events of the present year in Chili, of which you are informed, will doubtless have the effect to raise the credit of the country, and to lessen the pressure upon it, at least for a time, and will probably leave the go

vernment more at leisure to attend to its internal affairs.

When we came away, it was understood that a committee of the Congress was engaged in drafting a new constitution, the power of forming and adopting it being exclusively vested in the Congress. Whether it will assume a federal or a national character is somewhat doubtful, as there are evidently two parties in the country, whose views in this respect are very different, and it is believed that they are both represented in the Congress. The one party is in favour of a consolidated or national government; the other wishes for a federal government, somewhat upon the principles of that of the United States. The probability seems to be, that, although there might be a majority of the people in the provinces generally in favour of the federal system, it would not be adopted, upon the ground that it was not so well calculated as a national government to provide for the common defence, the great object now in view. The same general reason may be urged, perhaps, for giving to the latter, should it be adopted, less of a republican character than probably would have been given to it in more quiet and peaceful times. There is danger, too, as the power of forming and adopting the constitution is placed in the hands of a few, that the rights and privileges of the people may not be so well understood or attended to as they would have been, had the people themselves had a more immediate agency in the affair. It is not to be doubted, however, that it will at least

have a republican form, and be bottomed upon the principles of independence, which is contended for by all descriptions of politicians in the country, who have taken part in the revolution, and will, it is believed, be supported by them, in any event, to the last extremity.

re

"Their means of defence, of which they are fully aware, are, in proportion to their numbers, greater, perhaps, than those of almost any other people, and the duration and the events of the war have strengthened the general determination never to submit to Spain. This determination rests upon the collections of former sufferings and deprivations; upon a consciousness of their ability to defend and to govern themselves; and upon a conviction that, in case of submission on y teras, they would, sooner or later, be made to feel the vengeance of the mother country. These considerations, doubtless, have the most weight upon those who have

taken a leading part. They, of course, use all their influence to enforce them, and thus to keep up the spirit of the revolution. In this they probably have had the less difficulty, as, although the sufferings of the people have been great, particularly in military service, and in raising contributions necessary for that service, yet the incubus of Spanish power being thrown off, and with it that train of followers, who filled up almost every avenue to wealth and consequence, the higher classes have been awakened to a sense of advantages they did not before enjoy. They have seen their commerce freed from legal restraints, their articles of export become more valuable, their supplies furnished at a lower rate, and all the offices of government, or other employments, laid open to them as fair objects of competition. The lower classes have found their labour more in demand, and better paid for; and their importance in society greater than it formerly was."

Estimate

and supported by the funds of the state, are confided to his supreme charge and inspection. He has the power of pardon, except in cases of state conviction. The supreme judicial power of the state is to reside in a supreme court, consisting of seven judges and two recorders, nominated by the director; every one of whom must have been a regular barrister eight years, and have attained the fortieth year of his age. This court shall, exclusively, take cognizance of all causes relating to envoys and consuls from foreign nations, all causes in which a province may be a party, all those concerning public functionaries, all those relating to crimes committed against the law of nations, &c. The members exercise their functions during good behaviour. The supreme court, as well as the other tribunals, is open to the public.

Chili. This newly established republic has completely succeed ed in driving the Spanish forces from its territory. General Balcarce, commander of the army in the south of Chili, having possessed himself without resistance of the forts of Dos Angales and Nacimiento on the Indian frontier, came in contact with colonel Sanchez, followed by about 480 men, the remains of an armament sent from Cadiz. The colonel was on his retreat to Valdiviâ, but the Araucan Indians had refused to allow him to pass. He had lost all his baggage, and was also encumbered with a helpless train of women, including a convent of nuns with their confessor at their head. Under these circumstances, he was apparently

left without other resource than that of accepting the honourable terms of capitulation offered by the Independent general to the last forlorn relics of a Spanish force in Chili.

Lord Cochrane, vice-admiral of the republic, sailed from Valparaiso in the month of January with four of his largest vessels, with the intention of attacking two Spanish frigates in the barbour of Callao. In this attempt he was unsuccessful, but he was able to give formidable interruption during several months to the trade of the coast of Peru, and occasionally to make captures of considerable value. In the month of July lord Cochrane declared the port of Callao, and in fact the whole Peruvian coast, in a state of blockade, but his attempts upon this important port all proved ineffectual; and it is probably attributable to this failure, that the Spaniards still hold Peru in subjection, notwithstanding the revolutionary propensity which seems to have manifested itself in this, as in the surrounding countries.

General Macgregor, with a trifling force, carried in a few hours the town of Porto Bello, notwithstanding the superior numbers of the garrison; a rich booty and a large supply of military stores fell into his hands, and he addressed on the occasion the following boastful proclamation to his army:

"SOLDIERS!-The army of New Granada has covered itself with glory. Porto Bello, the most famous fortress of South America, could only withstand a few hours the valour of our army.

The