vrnA Cauz, Aur. 3lst, lsl7.
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 letters tothe s9th inst, with intelligence that ut last negotiations for peace have been commenced and are carried forward in earnest, the commissioners have met for that Purpose In village near the city of Mexico, called San JuanicO.

 Bat let as commence at the beginning, or rather et the point where left of In my last letter. On the 3UGh inst, Gen Scott turned the enemy s flank and advanced by the lefs ts the village of T1aipan tor as it Is called, Ssa AwyastiR, de las Cne0as,l Gboat tenor twelve miles South of the city of Mexico, VaieNcin, with about nine thousand troops taking position at village half way be- tween tho city and the American army.

 Daring tho night, Valencia amused himself by firing a good deal of artillery, but without any serious inconveBicnee to the Americans, who again turned his position and attacked him with the bayonet alone. In twenty-five minutes, Valencia's force scattered to tho winds with great loss of infantry, and twcnsy-two pieces of artillery. The cavalry suffered but little, from the fact of having taken to their heels as soon as the first gun was fired.

 Valencia was more than half drunk, and had spent the early part of the night in alternate freaks of good and bod humor in one minute cursng, and in the next promoting his officers, and dispens ing commissions every hand. Santa Anna seemed to be fearful of some accident, and at time sent an aid to caution him against the proha- ble intentions of Gen. Scott, but old Valencia told the messenger to 'sgo to-" ('Ra Ea earTaio,') he could "take care of his own division without Santa Annass ass;ssance,n &c. When any one of his officers would bring him report of the move- ments of the Americans, he would drive them from him with curses of "cowardice," and the worst epithets in the vocabulary of Spanish blackguarism To this fact is to be attributed in great measure the quick destruction of his force, he was ut- terly unprepared when the attack was made

 After having thus disposed of Valenea's division, Scott lost no time in turning upon Santa Anna, who was close in the neighb0rhood, hut had been Aa sist Valencia. Here the Americans able to use their artillery 10 some advantage, and 1t well they could do SO, for Santa Anna's force was immense. The battle now ragged, with great car mage, for two hours, when t terminated in the complete rout of the Mexican army, the remnins of which in the utmost confusion, sought refuge in the city.

 Gen. Scott did not see proper to advance, and consequently took up his position at Tacubaya but had he pushed forward, am assured that he could have taken possession of the city without meeting the slightest assistance. He was probably guided by the policy of not driving the Mexcans to des- pair, for he could hardly be ignorant of the fact.

 The loss on the Mexican side is variously estima- ted at numbers between one and four thousand kill led, and six to ten thousand wounded and taken prisoners. Amongst our prisoners taken is the company of foreigners which deserted some time ago, under Capt Riley. General Scott immediate y ordered a court martial to be convened for their

 

 Generals salas, Anaya, and Rncon, are amongst our prisoners

 Our loss is as variousIy estimated as that of the Mexicans. Some say 1t is one hundred only. while others make it a thouand killed. One officer, of whom know nothing, writes to friend here, that he himself saw thousand corpses buried. | think some of the thousand must have been Mexi- cans. Amongst our killed, 1 am sorry to say are eighteen officers, amongst whom Col. Burnet, of New York, Col. Butler, Capt. Thornton, (whose capture, you remember, commenced the war, and Capt Johnsen. Gen. Scott is said to have acted with great magnanimity towards the flying enemy. and gave special orders to deal us lightly as possible with the National Guard, corps composed of the most respectable citizens of Mexico, and he proba- bly thought 1t pity to injure kands0He and so harmiess body of men.

 During the day and night of the 2lst the streets of the city represented as presenting the most pitiable scenes that the imagination could picture crowded with wagon loads of the wounded and dying, and resounding with the cries of women and children. God forgive those who have been the cause of this suferng feel that never shall.

 Santa Anna had hardly reached the city when he dispatched flag of truce to Gen. Scott, with pro- Posals for temporary suspension of hostities, and the appointment of Commissioners to agree upon terms of an armistlce, during which negotia- tions for peace might be opened. To this General Scott assented, and sent Gems Quitnan, Persifor r. Smith, and Pierce, his commissioners, who wsre met by Generals Mora Viilamil and BcnJto &luilana on the part of Santa Anna

 These gentlemen finished their labors on the night Of the 23d, and produced an agreement Of sixteen articles, herewith enclosed, arranging an armistce on terms fully favorable the Mexicans had any right to expect.

 lu accordance with the object of the armistce, Santa Anna appointed four Commissioners to meet the American Commissioners, and proceed to ne- he Ds-z al rera, (the old Prcsident) and Mora VlaInil, and two lawyers, Senors Couto, and Atristain. Of these, Herrera Is we'll known, and his name re- qaires no remark. Mora ViliaInil Is a creature of Santa Annals, of but little talent, and will be guided by the others to a great extent. Conto is Judge, believe, in the Supreme Codrt of Ju- dicature, but nothing is known of him here.-- Atristain is also lawyer, and man of talent. He is strong friend to English interests and in favor of peace us sincerely as Herrera.

 The terms of the propositions borne by Mir. Trist are yet a secret IL is to be hoped that they are such as Herrera conscientiously accept, and that thinking Mexicans will receive.

 But there b yet much trouble in the prospect. am afraid that some of the States will secede, and new Governments swarm around Us, hostile to a settlement of our difficulties on any reasonable grounds.

 Already there are two pronounciamentos promul- gated one by Valencia at Tolneo, where he fled the day of his defeat Another by Paredes, who has gathered few hundreds of the discantentad around him at Atiisco, and third by Francisco Rebaud, c0snssaadan. of the pert of Mazatan, who has de- clared himself independent of the whole Republic. His eeiect, however, Is only that of robbe<, and small force will dispOssess him, l fancy, in the course of a few months, or probably soon as be has acquired few hundred lhousaHd dollars he will abdicate. This Richard is well known in New 0r leans, where he resided for some time a few years ago, during which he fought two duels with Sent manat

 forgot 10 say any thing of the respective forces of the two armies al the battles of the 2lst, and will now add that have the highest authority for placing our troops-that day in the feld--at seven thousand men, Santa Anna and Valencia had not a man less than thirty thousand Gen. Worth, in a letter to friend here, says thirty t,po thousand and believe him to De correct, if not below the mark.

 The steamer Mary KiagsIaHd is ordered to be held in readiness to take Gen. Scott's despaiches which may arrive tonight or not within, the neat aI- IL Il E