4 MARCH 1865, Page 2

The quarrel between Spain and Peru has been settled by

the Republic agreeing to pay the kingdom 4,000,000/. sterling, which amount will be raised by a further mortgage upon the Guano Islands. It is said that the event, which, though Spain has some real claims, has an unpleasant air of filibustering about it, will lead to a confederation among the South American Republics, pro- bably draw closer the bonds between them and the great Republic in the North.