NEWS OF THE WEEK.
THERE is a possibility of war between the United States and Chili. Captain Schley, commanding the United States steamer Baltimore,' now at Valparaiso, has reported that the citizens of that town have assailed men on leave from the Baltimore ;' have killed Regan, a boatswain's mate ; and have refused redress through the police, whom, indeed, he suspects of joining the mob. President Harrison has there- fore demanded immediate redress, an indemnity, and an apology ; and orders have been issued to all available American cruisers to repair to Valparaiso. The Chilians, however, have refused the terms. They are exceedingly excited by the conduct of Mr. Pierce Egan in favouring President Balmaceda and sheltering his friends ; they share the Spanish-American hatred for the Anglo-Americans ; and they declare that the whole affair was a drunken riot, to be settled by the Municipal Courts, and not by the nation. The decision of the Washington Government is not yet known, but the desire for a spirited foreign policy is strong; a war would render Free-trade impossible for a time, and the quarrel is one with limited liability. It is quite possible, therefore, that the Government may order a blockade of Valparaiso, or seize Iquique, the nitrate port, as a material guarantee for redress.
