26 NOVEMBER 1881, Page 3

The papers are discussing a singular rumour, which deserves some

attention. The Chilian Government is pushing the "rights of war" very far in Peru. Unable to find a Govern- ment which will grant its terms, it is occupying Lima and Callao, leaving the rest of Peru in anarchy, and it is stated that the Government of Washington has interfered. It has, through its Minister in Peru, General Hurlbut, ordered the war to cease, and Chili to make peace without claiming any Peruvian territory. Chili, very indignant, has marked its indignation by seizing the Peruvian President, S. Calderon, because he is acknowledged by General Hurlbut, and shipping him for Santiago. President Arthur is believed to be very angry, and there is a rumour of a large American purchase of ironclads in Europe. That is the story, which is not impos- sible, as the United States always claim a kind of arbitrating power in South America; but the Chilian Minister in Washington knows nothing of it, except the arrest of S. Calderon, and the speculators who doalin " Peruvians" and "Chilians " are quite capable of inventing that or any other romance. American pro- tection might make Pere solvent again, which would be a wind- fall for her bondholders. Egypt, Tunis, Peru !—it will be neces- sary to hang a bondholder yet. He poses as a most innocent individual, but he makes wars, and instigates conquests, and establishes Protectorates.