the expediency of closing
the Welland Canal against American vessels, on account of the refusal of
the United States Government to adopt reciprocity measures. This course,
which would seriously injure our commercial interests on the Lakes, has
not yet been pursued, and the Government will probably abandon the idea.

MEXICO.

The administration of Gen. Arista is still a subject of much interest
and some curiosity. According to the representations of his friends, he
is about to take a firm stand in the accomplishment of his leading
measures; while, on the other hand, he is charged with weakness and
subjection to the influence of irresponsible favorites. Our latest
accounts from the Mexican capital predict that the Government will soon
be in a state of great embarrassment. The American indemnity money was
nearly spent, and there was already a deficiency of near $2,000,000 in
the Treasury. In consequence of the many robberies recently committed in
and around the city of Mexico and on the road to Vera Cruz, the most
stringent measures have been adopted for the preservation of order.
Congress is still in session, but has made no modification in the Tariff
bill, as was anticipated. It is feared that the Tehuantepec Railroad
Treaty will be rejected, notwithstanding that Arista is known to be
strongly in its favor. The exclusive privilege of a railroad from Vera
Cruz to Medellin, has been granted for one hundred years to Don Jose
Maria Estera.

The revolutionary difficulties in the State of Oaxaca, have not yet been
settled. A treaty was made not long since, between Munoz, the Governor
of the State, and the rebel, Melendez, which gave great offence to the
people. In order to reinstate himself in their favor, Munoz pretended
that the treaty had been violated on the part of Melendez, marched
against him, and drove him and his followers into the mountains of
Chimalapa, where he has since remained concealed. The Tehuantepec
Surveying Expedition is now encamped at La Ventosa, a port on the
Pacific. The route of the Railroad across the mountains has not yet been
decided upon, the survey being a matter of difficulty on account of the
dense forests with which the country is covered.

In YUCATAN, the war between the Spanish and Indian races is raging with
great ferocity. The Indians, who are supplied with arms and ammunition
by the English at Belize, have advanced to within thirty miles of
Merida, where a line of defence has been e