[Extract.]

Mr. Hall to Mr. Seward.

No. 52]

Sir: In my despatch of February 12, 1864, (No. 16,) I informed you of the arrival here of a number of stage coaches, the property of citizens of the United States, and of the popular enthusiasm manifested on the occasion—the military parade, the large procession with the President and the members of his cabinet at its head, which went out to meet the coaches and escort them into the city, and the shower of rose-leaves with which they were greeted by numerous ladies in the balconies overhanging the street along which the procession passed. The President, as well as the great body of intelligent men in this quarter, regarded the arrival of these coaches in the hands of enterprising citizens of the United States as a beginning of an era of progress for Bolivia, believing and hoping that this enterprise, and the men who were to conduct it, would be succeeded by other enterprises of a similar character, conducted in like manner by citizens of the United States until results of unspeakable importance to the country should be achieved.

I am glad to be able to inform you that the success of this particular undertaking has thus far corresponded in the main to the expectations of its authors. [Page 328] The existing provisional government has manifested quite as favorable a disposition towards it as did the government of President Acha. Through facilities afforded by the former, one of the company has gone to the United States with funds to procure and bring hither stock for a line of coaches, and also a line of wagons, to run between this city and La Paz.

* * * * * * * *

After the lines of post coaches and transportation wagons between this place and La Paz shall have been established, a railroad to some point on the coast may be expected with much confidence at no distant day. Though so impoverished as regards revenue, the government of Bolivia, by the grant of certain mining and guano privileges, can induce English capitalists to construct a railroad, which shall connect the coast with the interior of the country. In the last days of President Acha’s government, an English company, in consideration of such privileges, had through its authorized agent agreed to construct the road. The contract was drawn up, and would have been signed within a few days by the respective parties, but for the revolution of the 28th of December last. A communication by railroad once opened with the coast, the demand in this country for various productions of the industry of the United States will rapidly increase. At this remote point, in the interior of Bolivia, our cotton goods are universally preferred to those of Great Britain. Even the Indians here perfectly understand the superiority of the former, and always purchase them when they can be had in preference to the latter. The same may be said in reference to other articles of United States production.

I have the honor to be, with great respect, your obedient servant,

ALLEN A. HALL.

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