[Extract.]

Mr. Hovey to Mr. Seward.

No. 3.]

Sir: Since my last despatch no radical change has transpired.

Three days of rejoicing (9th, 10th and 11th instant) have taken place, to celebrate church ceremonies and the battle of Ayacucho. This battle, you will remember, terminated the war between the revolutionists of South America and Spain, and owing to the excited feeling here against the mother country, the celebration has been attended with great pomp and ceremony, under orders from the authorities to spare no expense. On the top of the municipalidad, the flags alone of the American governments were displayed, that of Chili on the right, and the United States on the left of the Peruvian standard. No enthusiasm was manifested, and I did not hear one single viva during the three days of pompous ceremony.

The people seem waiting, wondering, hoping, but as the army is now under the complete control of the “Jefe supremo provisario de la republica,” (supreme provisional chief of the republic,) they have but little to say, but are silently awaiting the action of the dictator.

So far his reforms have all been salutary, and meet with the approbation of the thinking part of the foreign population.

By the constitution and laws of Peru hundreds of ex-officers draw full pay during life. It is said that more than one-third of the people live upon the funds of the government. The supreme chief has cut off the salaries and has by every means economized the expenses of the treasury department. These and other reforms will appear from the files of El Peruano, which are herewith enclosed.

I have had no official intercourse with the authorities now in power, as your instructions, under the present condition of affairs, required me to report and await further orders.

The representatives of other governments, even before being informed, by note, of the change, awaited in person upon the “Jefe supremo.” They all seem anxious to be first in congratulating his supremacy, and the hats which they threw up for Canseco have scarcely come down when they are found making their grand salaams to the new dictator.

My impression is that General Prado will remain in power many months, and if patriotic and endowed with the genius for the hour, will do great good for Peru. Many reforms are needed, and some strong arm must make them, or liberty here will be only a name.

The warmest feelings are felt for the United States, and a child-like faith exists that we will shield them in every emergency.

* * * * * *

I have the honor to be, your obedient servant,

ALVIN P. HOVEY.

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