Mr. Prevost to Mr. Seward.

No. 2.]

Sir: The supreme court of the republic of Ecuador have, in the second instance, confirmed the sentence of the court in the first instance in the verdict that the steamer Washington is a good prize to the government of Ecuador “buena presa.”

The supreme court, sitting in the second instance, is the highest tribunal of the country, to whom the owners of that steamer had appealed for justice. The steamer Washington, after having been seized, and while actually running as a passenger and freight boat, by and for account of the government, took fire and was entirely consumed.

The death of Admiral Pareja, the commander of the Spanish naval forces in the Pacific, has created much sensation both here and in Quito. The charge d’affaires of her Catholic Majesty at Quito has been for some time past endeavoring to induce the government of Ecuador to preserve a strict neutrality in the war between Spain and Chili, and to permit the national ships of her Catholic Majesty to enter the port of Guayaquil for the purposes of taking provisions, coals, and repairs, &c. On the other hand, an extraordinary diplomatic commissioner has been sent to the cabinet of Quito by the present government of Peru, for the purpose, as it is currently said, to induce Ecuador to join her two sister republics, Chili and Peru, in defending their rights against the intrigues of Spain.

I am not able at present to state to your excellency the result, but the chargé d’affaires of Spain has left the capital and is now in this city awaiting the result. It is, however, almost universally believed here that the government of Ecuador will side with her two sister republics, and may thus have a war with Spain.

I have the honor to remain your excellency’s most obedient servant,

L. V. PREVOST, United States Consul in charge of the Legation.

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