The town of Valparaiso looks as if built on terraces at the foot of the range of hills above mentioned. Northward it stretches out on the level sea shore, in a long double row of houses called the Almendral: towards the south it rises in the direction of the hills. Two clefts or chasms (quebradas) divide this part of the town into three separate parts consisting of low, shabby houses. These three districts have been named by the sailors after the English sea terms Fore-top, Main-top, and Mizen-top. The numerous quebradas, which all intersect the ground in a parallel direction, are surrounded by poor-looking houses. The wretched, narrow streets running along these quebradas are, in winter, and especially at night, exceedingly dangerous, Valparaiso being very badly lighted. It sometimes happens that people fall over the edges of the chasms and are killed, accidents which not unfrequently occur to the drunken sailors who infest these quarters of the town.

Viewed from the sea, Valparaiso has rather a pleasing aspect, and some neat detached houses built on little levels, artificially made on the declivities of the hills, have a very picturesque appearance. The scenery in the immediate background is gloomy; but, in the distance, the summit of the volcano Aconcagua, which is 23,000 feet above the level of the sea, and which, on fine evenings, is gilded by the rays of the setting sun, imparts a peculiar charm to the landscape.

The bay is protected by three small forts. The southernmost, situated between the lighthouse and the town, has five guns. The second, which is somewhat larger, called el Castillo de San Antonio, is in the southern inlet of the bay. Though the most strongly fortified of the three, it is in reality a mere plaything. In the northern part of the town, on a little hillock, stands the third fort, called el Castillo del Rosario, which is furnished with six pieces of cannon. The churches of Valparaiso are exceedingly plain and simple, undistinguished either for architecture or internal decoration.

The custom-house is especially worthy of mention. It is a beautiful and spacious building, and from its situation on the Muele (Mole) is an object which attracts the attention of all who arrive at Valparaiso. In the neighborhood of the custom-house is the exchange. It is a plain building, and contains a large and elegant reading-room, in which may always be found the principal European newspapers. In this reading-room there is also an excellent telescope by Dollond, which is a source of amusement, by affording a view of the comical scenes sometimes enacted on board the ships in the port.

The taverns and hotels are very indifferent. The best are kept by Frenchmen, though even those are incommodious and expensive. The apartments, which scarcely contain necessary articles of furniture, are dirty, and often infested with rats. In these houses, however, the table is tolerably well provided; for there is no want of good meat and vegetables in the market. The second-rate taverns are far beneath the very worst in the towns of Europe.

On our arrival in Valparaiso, a vast deal of activity and bustle prevailed in the harbor. Chile had declared war against the Peru-Bolivian confederation, and was fitting out a new expedition for the invasion of Peru. At its head were the banished Peruvian president Don Augustin Gamarra, and the Chilian general Bulnes. The growing power of Santa Cruz, who set himself up as protector of a confederation between Bolivia and Peru, had given alarm to the Chilian government. It was apprehended, and not without reason, that the independence of Chile might be threatened by so dangerous a neighbor. Santa Cruz had given umbrage to Chile by several decrees, especially one, by which merchant vessels coming direct from Europe into a Bolivian or Peruvian port, and there disposing of their cargoes, were subject to very low duties, whilst heavy imposts were levied on ships landing any part of their cargoes in a Chilian port. This law greatly increased the trade of Peru; but it was prejudicial to Chile. This and other grounds of offence, joined to the representations of the fugitive Ex-president Gamarra and his adherents, determined the Chilian government to declare war. An expedition under the command of General Blanco was sent to Peru; but Santa Cruz was prepared to receive the invaders, and in the valley of Arequipa he surrounded the Chilian forces so completely that they were obliged to surrender without striking a blow. Santa Cruz magnanimously allowed General Blanco to make a very favorable capitulation. The soldiers were sent home to their country; but the horses were detained and sold by the conquerors to the conquered.

The generosity of Don Andres Santa Cruz did not meet its due return on the part of the Chilian government. The treaty of peace concluded by Blanco was not ratified in Santiago, the minister declaring that the general was not authorized to negotiate it. Hostilities were kept up between the two states, and at length a second and more important expedition was fitted out. It sailed whilst we were lying in the harbor.

No sooner had we cast anchor than several officers of the Chilian army came on board to inquire whether we had any swords to dispose of, assuring us that they, together with the majority of their comrades, were yet unprovided with arms, and knew not where to procure them. The captain informed them that there were no swords in our cargo; but that he had a few sabres, &c., which he was very willing to sell. They were immediately produced, and some were purchased; among the number was a heavy broad-sword, about five feet in length, which had once belonged to a cuirassier in Napoleon's guard. The Chilian officer who bargained for it was a delicate-looking stripling, who, with both hands, could scarcely raise the heavy weapon. He, nevertheless, flattered himself that it would enable him to achieve great deeds in battle and deal death among the Peruvians. Ten months afterwards I met this hero on a march among the mountains of Peru. He had, girded on, a light little sword, like a tooth pick or a bodkin compared with the formidable weapon he had discarded, and which a sturdy negro was carrying behind him. I could not refrain from asking the officer whether the trusty broad-sword had not done good service in the battle of Yungay; but he candidly acknowledged that he had not attempted to use it, as he found it much too unwieldy.

The Chilian squadron sent to Peru consisted of twenty-seven transport ships, and eight ships of war. Almost all were in a wretched condition, having but few guns, and manned by very insufficient crews. The largest vessels were the three corvettes, Confederacion, Santa Cruz, and Valparaiso. Only one ship, the schooner brig Colocolo, was distinguished for solidity and swift sailing. The fleet was commanded by an admiral of little judgment and experience.

Among the crew there were but few Chilenos: most of the men were Chilotes and French, English and American deserters. The officers commanding the ships were almost all Englishmen. The transport ships were heavily laden, some carrying troops, and others provisions. These provisions consisted of sesino (dried beef), chalonas (whole sheep dried), maize, potatoes, dried fruits and barley, together with hay for the horses. The embarkation of the horses was most clumsily managed: many were strangled in being hoisted up the ships' sides, others slipped through their girths and were severely hurt by falling, and a considerable number of the poor animals died before the ships left the port. Every morning we saw dozens of dead horses thrown over board. The continued lurching of the vessels in which the cavalry was embarked, bore evidence of the inconvenient situation of the horses between decks.