[Extract.]

Mr. Kirk to Mr. Seward.

No. 165.]

Sir: The 25th instant, being the national independence day, was celebrated by a grand Te Deun in the cathedral, to which all foreign ministers were invited. and, of course, I attended.

Mr. Paz, the vice-president, but now the acting president, (during President Mitre’s absence with the enemy,) tendered his resignation to congress; but it has not been accepted, and I judge, from a conversation I had with Minister Ransom, it would not be.

On the 24th instant there was a battle in Paraguay, and it is supposed to have been the greatest battle which has ever taken place in South America. It is said the Paraguayans attacked the allied army with twenty-five thousand men, and fought with wonderful desperation, but were repulsed with the loss of four thousand killed and a large number wounded; and from a private letter I learn the allies lost three thousand in killed and many wounded. It is considered a great victory here. It is very difficult to form a correct opinion from the various reports in circulation. Many are of the opinion that the war will soon be over, and Lopez overthrown; but at this distance it is impossible to say with any correctness. Dr. Ransom informs me that fifteen per cent. of the army are sick.

Enclosed I send you a copy of President Mitre’s letter to Vice-President Paz.

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I have the honor to be your obedient servant,

ROBERT C. KIRK.

Hon. William H. Seward, Secretary of State, Washington, D. C.