The slaveholders of Brazil have not crushed Lopez yet. It
appears from a telegram dated Rio de Janeiro, and therefore unscrupu- lously Brazilian, that the Marquis de Caxias delivered the long threatened attack upon Humaita on the 16th July. The slave- holders were repulsed with a loss of a third of the attacking force, 10,000 men, and were also beaten in an engagement in the Chaco. The news will greatly increase the ferment in the Argentine Republic, where the war is already disliked ; and in Rio, where it will now be necessary either to issue inconvertible paper, or carry on war by requisitions, or make a peace which will be dictated by Lopez, and include the cession of Matto Grosso to Paraguay. Once possessed fully of that province, able to offer land and freedom to runaway negroes, Lopez will hold in his hands the power of disorganizing Brazil.
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