16 SEPTEMBER 1837, Page 3

We have been favoured with the perusal of letters from

Val- paraiso, of the latest date (the 10th June) received io this country. They state that, on the 3d of June, a body of the troops stationed at Quillata, and forming part of an expedition intended to be sent against Peru, revolted, and made prisoner Don DIEGO PORTALIS, Minister of War. The leader of the revolt was Colonel VIDOURRE, whose object was to upset the existing Government in Valparaiso; towards which place he immediately despatched about 400 men. A body of troops from Valparaiso drove back this detachment to Quillata. VIDOURRE himself left Quillata with his whole force on the 5th of June, and arrived within a short distance of Valpa- raiso before daybreak on the 6th; when he encountered a body of militia, about 1,000 strong, and a battalion of regular troops ; by whom he was driven back with considerable loss. Before leaving the field of battle, the insurgents murdered PORTALIS, With twenty-eight bayonet wounds. This statesman was consi- dered a man of superior ability, and Chili will feel his loss in some respects ; but if his death put an end to the war with Peru, of which he was the chief promoter, it can scarcely be lamented. Under the government of SANTA CRUZ, Peru is flourishing; and any event which strengthens his authority must be regarded as beneficial to South America. SANTA CRUZ, as head of the Fe- deral Union of Peru and Bolivia, has established a liberal com- mercial system ; and jealousy of the prosperity of those countries is the real cause of the hostility of Chili and Buenos Ayres.