When the war supervened, Asuncion and all Paraguay, under the despotic but intelligent sway of Lopez, were moving rapidly in the path of progress. In fact, twelve years ago no country in La Plata was blessed with so flourishing and perfected a system of industry as Paraguay. But the war came, waged by the allies expressly to destroy for ever the dictatorial authority wielded by Lopez; Paraguay was invaded and overrun; and the fierce and destructive character of the contest has left shattered walls in the capital, and in the interior the blackened ruins of ranchos. These traces of the terrible conflict give a melancholy aspect to the city, and its future is further shadowed by the hopelessness of the people, who seem to have no heart to repair the damage done to the houses. [Illustration: THE HILL OF LAMBARE.] In coming to Asuncion, M. Forgues had taken on himself a commission far more troublesome than that of collecting the money due to the commercial house with which he was connected; and this was to deliver into the hands of the French _charge d'affaires_ at Buenos Ayres, the comte A. de C----, who happened to be at the time in Asuncion, the despatch-bag of the legation, which had been consigned to his care by the French consul in the former city. Behold, then, our traveler, as, accompanied by the captain of the Republica, he sets foot on the quay, intent on relieving himself of his precious valise, the possession of which is doubly embarrassing because of its very preciousness. He has a hope that he may meet the _charge_ at the Progreso Club, whither he is going, but whether he is to be met or not, he does not dare to leave behind him the valise, which to him is a veritable Old Man of the Sea. Night has fallen when they leave the steamer. The dark, sandy streets are badly graded, and he stumbles repeatedly on the uneven brick pavements which line them, at every step anathematizing the valise, which is far from being a light burden. The club-house was the residence of Lopez before the allied armies occupied the city. From its seclusion he went forth to meet his death at Cerro Cora. In the parlor is a large mirror with gilded mouldings, and the dining-room walls are hung with painted paper representing in vivid colors, and with much gilding and silvering, scenes from French history, in which musqueteers, courtiers and the cardinal de Richelieu figure. A large and notable company is present, among them many high civil functionaries, but the _charge d'affaires_ is not there. In the billiard-room the honorable minister of finance plays a game with the honorable minister of the interior. They are both of unpretending manners, polite and affable, and during the pauses of the game they call for and drink their beer in true democratic fashion. M. Forgues learns that his _charge_ lives two leagues out of town, and, hugging his exasperating valise--which, we may here remark, was delivered safely to the _charge_ next day--he returns in company with