The object of the federation was to bring about a more settled state of
affairs, and arrange for the friendly adjustment of all disputes with
foreign countries.

These five small republics, joined together with a common interest,
should play a very important part in the affairs of Central America.

* * * * *

South American affairs are still in a state of turmoil, and Argentina
has now been drawn into the quarrel.

It seems that the Argentine Republic is in sympathy with the rebels, and
has sent filibustering expeditions of men and supplies to them.

The Uruguayan Government became extremely indignant at this, and
endeavored to put a stop to such proceedings by invading Argentina. A
force of soldiers was landed on the coast of Argentina, and a vessel
flying the flag of that country was sunk by the guns of the Uruguayan
cruiser.

Argentina immediately replied by sending one of her gunboats to the
scene of action, and making preparations for war with Uruguay.

In the mean while the rebels have been gaining victories both in Brazil
and Uruguay. The fanatics under Conselhiero (see page 741) have beaten
back the Brazilian troops, and have recaptured Canudos. The Uruguayan
rebels, on their part, have defeated the Government troops at Rivera,
inflicting heavy loss on them.