Between La Plata and Chili there is an internal traffic in favour of the former for Paraguay tea, &c. But the internal commerce of the Chilian provinces is trifling. The inhabitants make ponchos, a sort of loose cloak universally worn, and principally manufactured by the Indians, stockings, carpets, blankets, saddles, hats, cloths, &c., which are chiefly used by the peasantry, the richer class employing European goods. These with grain, wine, brandy and leather, form the chief articles of home consumption and trade. On the whole the present state of commerce in Chili is not very flourishing, owing to the few inhabitants in proportion to the extent of the country. A late traveller has given for the united exportation and importation of Peru and Chili, the following average, viz. for the importation 11,500,000 piastres: for the exportation in agricultural produce 4,000,000 of piastres, and for the exportation of gold and silver 8,000,000; or 2,491,670_l._ sterling for the importations, and 2,600,000_l._ sterling for the exports, leaving a clear profit of 108,330_l._ _Capital._--The metropolis of Chili is the city of SANTIAGO, founded by Pedro de Valdivia, in 1541, in an extensive valley inclosed on the east by the Andes; on the west by the hills of Prado and Poanque; on the north by the river Colina, and on the south by the Mapocho or Tepocalma, which flows on the northern side of the city. It was first called Nueva Estremadura, but soon changed its name to that which it now bears, and its situation is the most delightful that can be imagined, in the midst of a fertile and abundant country, and in a serene and temperate climate. Santiago stands fifty-five miles from its port of Valparaiso, in 33° 26' south latitude, and 70° 44' west longitude. Its population is supposed to exceed 36,000 souls, many of whom are people of noble descent, and whose families enjoy exalted stations in the colonies. They are in general robust, well made, and active; the women are handsome, elegant in their manner, and graceful in their conversation. More than one half are creoles, and in the other moiety, the Indians bear the largest proportion. The streets are very wide, paved, and built in straight lines forming small squares at intervals, each house having its garden, and though they are built low, yet they are in general convenient and well finished. The river is conveyed by small canals into the gardens, and the chief square, which is in the centre of the town, has a magnificent fountain. This square contains the palace of the captain-general, the court of the Royal Audience, the town-hall, the prison, the bishop's palace and the cathedral.