(Extract.)

Mr. Koerner to Mr. Seward.

No. 112.]

Sir:* * * * * * *

Since my last despatch, (111,) I have received No. 96, together with copies of another series of documents relating to the Peruvian question. The package being quite heavy, Mr. Miller, in London, did not send it by mail, but by the Spanish courier, which will account for the delay, which, however, was of no consequence, as all these documents had been fully published in the Madrid journals long ago, and had, of course, received my most careful attention. There is no despatch missing except No. 106.

The general expectation here is that the conflict with Peru will be amicably settled, and that permanent relations between that country and Spain will be established.

The same evening that the state department received its American mail the “Epoca,” a paper in the interests of the ministry, contained the following article, of which I give you a translation:

“We have to-day received despatches from the United States which are very satisfactory to Spain. The explanations given by Mr. Tassara on the real policy of the Spanish government in America, and, above all, the official knowledge of the despatch of our minister of state, dated the 24th of May, and which was received in Washington in the middle of June, have done away with all fears and all accusations made by the enemies of Spain.

“We know that the government of the United States has been the first to advise the government of Peru to give to Spain the satisfactions which are legitimate, being sure that our country would respect the independence of the American states. The government of Washington, as well as that of Rio Janeiro, offer their good offices to disentangle these difficulties, which, however, Spain will bring to a close directly with Peru.”

I have underscored the last lines, they being another intimation that Spain declines at least a formal mediation, which, as far as this legation is concerned, was never offered. My note to Mr. Pacheco, of the 20th of May, (four days before he issued his diplomatic circular of the 24th,) and of which I have sent you a copy, is the only document passed on the subject, and my subsequent conversations with him have never exceeded, if they have reached the terms used in that note as respects the tendering of our good offices.

Rumors of a popular rising in Madrid are still afloat. I am not able to discover any symptoms of it, nor do I think that there is at present any conjuncture of affairs in Spain which would be likely to produce violent commotions. Yet it will never do to speculate here. The character of this southern people will always be, to some extent, incomprehensible to a northern mind, since they act generally upon mere impulses and momentary passions, which of course lie beyond human foresight and calculation.

The government seems to be strangely alarmed. Last Wednesday night, at about 11 o’clock, the principal guard of the city at the Puerto del Sol was increased all at once by no less than 200 troops; messengers called all the officers from their clubs, coffee-houses, and the theatres, to the barracks, and the soldiers there were kept on the qui vive for several hours. These measures created some excitement in the streets, promenades, and cafes, which here in Madrid, about midnight, are generally as much crowded as Broadway is about noon. But I saw no disorder, only people wondering what this all meant. The captain general of New Castile, who ordered the forces out, it is now alleged, was trifled with by some false denunciation, and he has offered to resign, but his resignation will not be accepted.

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The King will visit France in August to return the visit of the Empress last fall. There is, of course, a good deal of wild talk in the papers about a peculiar object in view, about alliances offensive and defensive, about Gibraltar and the like. The court and ministerial journals speak of it as only a visit of unavoidable courtesy, which seems to me the most probable. The King, though in a certain sense tolerably well educated and possessing many accomplishments, seems to me to have no reach of mind, and to be wholly unable to grasp great political ideas. Besides, constitutional principles have taken root in Spain deep enough to prevent any ministry letting the King, who, however, is only so by title, go out on important diplomatic errands. No visit of his to France, however, will be liked by the people here, who distrust and hate, if not the French people, at least every French government.

I have the honor to be your most obedient servant,

GUSTAVUS KOERNER.

Hon. William H. Seward, Secretary of State, &c., &c., &c.