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 Ayres, censuring the Governments of Brazil and Bolivia for recognizing the independence of Paraguay.

In addition to all these advantages arising out of the independence of the Republic of Uruguay, it ought to be mentioned that the Government of Monte Video has preserved an undepreciated silver currency through all its difficulties, whilst the Buenos Ayrean Government has issued such masses of paper without ever redeeming it, that the Buenos Ayrean paper dollar is not worth more than 4-1/4d. at the present time. The other states of the Argentine Confederation positively refuse to take the Buenos Ayrean paper money, but foreign merchants are compelled to take it, or to dispose of their goods by barter, which is seldom possible.

The consequence of the liberal commercial system adopted by Monte Video, aided by the excellence of its situation has been to raise that city, in fourteen years, to the position of one of the first commercial places in America, as will be seen from the following summary of the export and import trade in 1842, the year before the commencement of the siege:—

EXPORTS.

638,424Hides, salted$2,553,696
780,097Hides, dry2,340,291
60,904Hides91,356
100,583Skins of Sheep201,706
111,801(arrobas) Tallow223,602
4,444(tons) Bones31,108
2,690(arrobas) Mares Oil4,035
26,462(arrobas) Hair79,386
946,955Horns28,408.5
96,540(arrobas) Wool144,810
3,341(dozens) Skins of Sheep6,682
8,019(quintals) Garras8,019
1,109(tons) Ashes8,872
18,198(arrobas) Fat36,396
424(dozens) Skins of Nonatos848
938Ditto Nutria2,345
513,641(quintals) Meat1,540,923
121(barrels) Tripe, salted726
150(barrels) Meat1,200
2,065(boxes) Candles6,195
170(dozens) Tongues170
470Mules9,400
2,380(lbs.) Ostrich Feathers892.4
————————
Value of Exports$7,321,066.1
Value of Imports on which duty was paid$9,237,696
————————

How much this extensive trade has increased since the establishment of the independence of Monte Video, will be seen from the following statement of the increase of British shipping from 1830 to 1842:—

BRITISH SHIPPING.

Years.Ships.Tonnage.Men.
1830417480425
1831366418387
1832305577324
1833519377541
18346512339664
18355410571573
18365811121628
18376312874708
1838100208001143
1839103212571147
1840132238211447
1841159345371788