South America.
By the packet from- Bueno-sAyres we have received a file of the Argos from the 10th to the 31st of July inclusive, and have also been furnished with extracts from private letters to the same date. The account of the defection of the Royalist General, Olaneta, in Peru, received lately by way of' Panama, is disproved by an article from Potosi, whichI represenits that General as still in that city in the middle of May. This article states that Olaneta, in the exercise of his functions as Viceroy of Upper Peru, had ap- pointed native Americans to the governmentsof Chuquisaca, Cochabamba, la Paz, an(d Santa Cruz. It is not easy to di- vine his object in this measure, which is certainly of an equi- vocal character, and may even be the prelude to a design on his part of erecting thiat portion of Peru into an independ- ent Government, with the supreme authority vested in bis own person. We find no other notices besides this of the Royalist ariny, and no advices could of course be obtained fronm Lima throuagh the district which they occupied. The intelligence from Lima and lower Peru at Buenos Ayres was all obtained by way of Chile, and does not come down to a later date. than the departure of the United States' ship Franklin from Callao. WVe learn therefore few facts net previously known. It is stated that the Montoneros, or liglit isative cavalry, attached to the army of Bolivar, were so nrumerous and active in the neigh- bourhoed of Lima, that the Spaniards were unable to con- vey provisions for the use of the garrison of Callao, without employing an escort of two or thrce squadrons of cavalry. Tl'he port of Callao continued, as before stated, to be block- aded by the Peruvian fleet, under the co;nmand of Admi- ral Guise. At Valparaiso great exertions were used to equip La Isabel, formerly the O'Higgins frigate, of 451 gUn1s, anid to despatch her to reinforce the Peruvian squa- (Ironi before Callao. With this addition it was hoped that a capture might be effecte(d of the Spanislh ship of, war the Asia, shortly expected to arrive in those -seas, but of whichl, although an anxious look-out had been kept, no tidinigs could be obtained. Due gratitude is ex- pressed to His Catholic and Apostolical MIajesty for send-' ing so fine and useful a ship there to augment the strength of the patriot squadron. The Chilianl Government was alse raising troops, and equippirg transports, for an expedition in aid of the Colombians in Peru. Besides the capture of, the Qeintanilla privateer, there had been taken bv the brigantine Congreso, on board of which was General Miller, the Spanish armed ship Vijia, fitted out at Cliiloe, and in which were found 150,000 dollars in specie. General Freyre liel not arrived at Santiago, but was daily expectedl tihere whleni the post left for Buenos Ayres. A Senor Pinto, who held the government of Co- quimbo, had been appointed Chief Secretary of State, but ha(i expressed an unwillingness to accept of that office. General Benevente hadl left the capital, to per- suade him to take the charge upon him, and to succeed him in the government ot' Coquimbo. The Governmenit at Buenos Ayres was employed in orga- nizing anti increasing the force to be station;ed at Salta for the protection of the frontier, in the event of any successes being obtained by the Royalist forces in Peru. The mea- sure was not, however, considercd necessary, but rather an excess of precaution ol a point that involved the security of the provinces. IVell-informed merchants in Buenos Avres felt persuaded that the Spanish cause was lost inI Peru from. the period wheni the dissensions took place among the com- miandersof the Royalist army. The only danger, and that appears to be far from a formidable one, with vwhichBueiios Ayres was threatened, was an incursioni of the Indtans. Twvo persons who had been carried off' hy the natives, but escaped af'ter a captivity of some weeks, and! arrived on the frontiers of t'ie Pirovinice on the 1otli of July, made deposi- tionts before a Magistrate, or Judge of the First Instance, that during their detention they had overheard the Indian in whose custody they were, discussing a plail for a general invasioit of the province of Buenos Avres, to be mnadiewith. in " three moons" by thc holde to which lie belonged. 'I-hey were able, however, to give no information of the nutmbers of these savages, nor of their state of preparation for stuch an citterprise. The Goveriiment thought it right nevertheless, on the credit of tlheie depositions,' to take all possible measures of precaution. 'llhe Government securities and Bank stock at Buenos Ayres had undergonie very extensive fiuctuations, but con- tinuedl to maintain very niearly the higli value to whielh they had risen oni intelligence that the negotiation for a loan in E ngland had been almest brought to a conclusion. The extreme poiiit to wlhich these securities had risen wa: sa for the 6 per cenlt. stock, and 2,700 for the Bank actions of 1,000 dollars each; the first subsequentlv fell to 87, and thc last to l,950, but at the period of the 'packet's sailing had recovcred t, of that dep; lYrs Ti-rt urlo&rnitVAcrica, as to the place where the General Con. gress was to assemble, and which was to form, therefore, the centre of the Federation, has been decided, according to the private letters, in favour of Buenes Ayres. The repre- sentatives of the province of Buenos Ayres, in order to encourage the navigation by stealm-ivessels of the Rio de la Plata, bad passed at decree exempting that class of' vessels from port duties for 10 years, from the 1st of January, 1S25. Au insuirrection took place at Mlend0oza on the 28th of June, whichl ended in the removal of the Governor, Gu- tierrez, and the appointment of Colonel Juan Lavallc as his successor. The place had been subsequently restored to tranquillity. SOUTHAMERICA.