River Plate rival that of the Mississippi. It is perhaps vain to hope that anything will induce the present Governor of Buenos Ayres to abandon the suicidal policy which is at once impeding the intercourse with the interior, and depriving that city of the principal benefits of its unrivalled position, but this only renders it the more necessary to keep open the only other course, namely, that through the Uruguay, by which the resources of these vast countries can be brought into activity.

For another of the great advantages which has resulted from the independence of Monte Video, has been the opening of a new channel for the commercial intercourse between Europe and the central states of South America, in peace as well as in war; and this channel the Monte Videan Government has laboured to improve and keep open, as zealously and as successfully as the Buenos Ayrean Government has laboured to narrow and impede the old ones. The Buenos Ayrean Government has been warned repeatedly by its warmest friends of the consequences which would result from its illiberal commercial policy; but they might just as well have reasoned with the winds; for, the only effect of the contrast between the rapidly increasing prosperity of Monte Video and the declining state of Buenos Ayres, has been to excite the most deadly hatred and jealousy towards Monte Video on the part of the Buenos Ayrean Government, and a settled determination to drag down that rapidly improving city to its own level. The following sketch of the commercial policy of the two countries will show what have been the principal causes of the prosperity of Monte Video, and what of the decline of Buenos Ayres; and also how strong a claim the policy of the former gives it on the sympathy and support of this country.

A large portion of the revenue, both of Monte Video and of Province of Buenos Ayres, is raised by taxes on the importation of foreign goods, and the rate of duties is not excessive in either case. It is not on this account that any one complains of the Buenos Ayrean Government, but because it confines foreign commerce to the single port of Buenos Ayres, and excludes both foreigners and foreign vessels from the other ports of the Confederation, as strictly as the Chinese formerly excluded them from every port except Canton. This it is able to effect by its command over the entrance to the river Parana, the direct route to Entre Rios, Corrientes, and the other provinces of the Confederation. Whilst the provincial Government of Buenos Ayres thus excludes all foreign vessels from the Parana, and as far as its control extends from the Uruguay, it claims the right to expend the whole of the customs' revenue raised at Buenos Ayres. The upper provinces very naturally consider this unjust, and insist on having either a share of the revenue collected at Buenos Ayres (somewhat on the principle adopted amongst the states of the German Zollverein), or on having a general Congress of all the provinces of the Confederation to decide how the money shall be distributed. This General Rosas and his adherents refuse, and this refusal, coupled with the equally positive refusal of the same parties to allow foreign vessels to ascend the river, is one principal cause of the frequent wars between the states of the Argentine Confederation on the banks of the river and the Government of Buenos Ayres, one of which is now raging between it and Corrientes. In this way the commerce with the interior is continually interrupted. The policy of the Monte Videan Government is in every respect the reverse of this, for it not only throws open the ports of Monte Video, Maldonado, and Colonia, on the River Plate, but those of Soriano and Paysandú, on the Uruguay, the Yaguaron, on the Laguna Merin, and the dry port of Taquarembó on the Brazilian frontier to all the world, and thus gives every part of the republic all the advantages of foreign commerce.

There is a still greater difference, if it is possible, in the policy adopted by the two governments with regard to the transit trade. At Monte Video goods may be landed without the payment of any duty, may be there deposited in the Custom-house stores for any length of time, on the payment of a smaller warehouse rent than is usually paid in Liverpool, and may be sent to any of the independent countries in the interior, or re-shipped to foreign parts, without the payment of a dollar. The Government goes even further than this, for it allows goods in transit to be conveyed through the whole territory of the Republic, with a guia or Custom-house Permit to all parts of the frontier, and to be forwarded into the Argentine provinces of Entre Rios and Corrientes, into the Republic of Paraguay, and into the back provinces of the empire of Brazil, perfectly free from duty. Hence goods are constantly forwarded up the Uruguay, instead of going to Buenos Ayres to pay duty to General Rosas. The natural consequence of this is, that the people of all the adjoining states have a friendly feeling towards Monte Video. Corrientes has several times risen against the connection with General Rosas, in support of Monte Video, and Brazil is prepared, if necessary, to interfere to save it from his grasp. In fact, it is quite evident that nothing but an entire change of policy on the part of Buenos Ayres can prevent a general war against its usurpations. The policy of Rosas with regard to goods in transit to the Independent States of the interior is altogether different from that of Monte Video, for, when landed at Buenos Ayres, they pay the same duties as if they were intended for consumption there, and not a sixpence, or what is less than a sixpence, a Buenos Ayrean paper dollar, is ever returned. When goods are intended for re-exportation by sea, the difference is in appearance less, but much the same in reality, for whilst they can be landed at Monte Video without paying any duty, can remain there as long as the owners like, and can then be re-exported duty free, at Buenos Ayres they cannot be landed without paying the full duties, their owners lose all claim to have any part of those duties returned, if they are not re-exported within six months, and it is only with the greatest difficulty and after waiting many months that they obtain any return at all, even if they are exported within that time.

A similar contrast is also seen in the spirit in which the Governments of Buenos Ayres and Monte Video treat the diplomatic agents of foreign nations. Soon after the death of the Dictator Francia, the English Government determined to send a diplomatic agent to the Republic of Paraguay. This gentleman, Mr. Gordon, first landed at Buenos Ayres, hoping to be allowed to proceed up the Parana to Assumption, the capital, but he soon found that it was no part of General Rosas's policy to allow any such communication. The consequence was, that after remaining at Buenos Ayres for some time combatting the pretences under which permission was refused, he found that there was no hope of his being allowed to proceed to the seat of his mission, through the countries subject to the dominion of General Rosas, and crossed over to Monte Video. There he was received with every attention, and furnished by General Rivera with a guard of honour, under whose escort he travelled to the frontiers of Paraguay. Mr. Gordon's letter of acknowledgement to General Rivera will be found in the Appendix, and it would be difficult to find a stronger illustration of the opposite spirit of the two Governments than is presented by this transaction. Not Francia himself was ever more determined to cut off Paraguay from communication with the rest of the world than is General Rosas, and the key to his conduct is, that he is determined, if possible, to reduce the people of that Republic to subjection to his authority. No longer since than the 15th of January last, a long article appeared in the official Gazette of Buenos