This country continues to be in a very disturbed condition. The revolution started by Munoz is still in progress, the leader being, at the latest dates, about to march upon Granada with the intention of taking that city by force if it would not yield. The government, however, had impressed into its service all the seamen in port, and many of those in the service of the canal company. A military disturbance had occurred at San Juan. A company of native soldiers was sent by the local authorities with orders to take as their prisoner a certain American, of the name of M'Lean, suspected of being a political spy. The soldiers surrounded the shanty where M'Lean and a dozen other Americans on their return from California, had halted, and fired into it, killing a negro and severely wounding a white man. The Americans returned the fire, killing one man and dispersing the whole company. Next day the affair was compromised by an agreement that M'Lean should leave the country, which he did. An insurrection has broken out in the States of San Salvador and Guatemala. General Carrera with 1500 men had attacked the enemy in San Salvador and defeated them, but he did not follow up his advantage. Mr. Chatfield, the English consul in Nicaragua, has become involved in another difficulty with the authorities. His _exequatur_ has been revoked, on account of his refusal to recognize the Central Government. SOUTH AMERICA. We have news from Buenos Ayres to the 18th of August. The war raging in that country is becoming more and more important, and a brief sketch of its origin and character may be useful in aiding our readers to understand the course of events. The contest is properly between Brazil and Buenos Ayres, and the prize for which the two forces are contending is the province of Uruguay. Until 1821 Uruguay was a province of Buenos Ayres; but Pedro I. of Brazil, by the lavish use of bribes and other agencies, equally potent and equally corrupt, succeeded in revolutionizing the country and attaching it to Brazil. In 1825 Uruguay declared itself free, and in 1828 it was recognized as a free government by the Plata Confederation, in which recognition Brazil was obliged to concur. Upon the abdication of Pedro, which occurred soon after, Brazil was governed by a regency of which Louis Philippe obtained complete control. France, Spain, and Portugal formed a design of re-annexing Uruguay to Brazil, and they found facile allies in this purpose in the Brazilian Court, which sought to extend the boundaries of the Empire to the coasts of the River Plata and the Uruguay, and to occupy the vast and fertile territory which they include. From that time to this, with occasional intermissions, the war has been going on. Rosas, dictator of Buenos Ayres, struggles with the strength of desperation for the recovery of Uruguay, and he is aided by Oribe, the President of Uruguay, who resists to the utmost the designs of Brazil, and prefers annexation to Buenos Ayres.