Mr. Williams to Mr. Seward.

No. 35.]

Sir: I have the honor to acknowledge the receipt of your dispatch No. 26, November 4, 1867.

Since my last dispatch I have spent some time at the annual fairs held in differents parts of the republic, chiefly for the sale of indigo and the purchase of foreign merchandise.

The principal fair this year, as for many years past, was at San Miguel, in the eastern department, a town of some fifteen to twenty thousand inhabitants. Before the introduction of our steamer line connecting with Panama, this fair was of great importance, and collected its tens of thousands of people from this, and the neighboring republics. Now, however, the regularity and certainty of communication with other countries have lessened its value and greatly diminished its trade. At the late fair, however, about half the indigo crop was brought in by the large and small producers, in packages of all sizes and qualities, the best selling at one dollar the pound, and the poorest as low as fifty cents. The concourse of people, though I am told less than in former years, was certainly very great, and the trade in foreign merchandise, I believe, quite satisfactory to the merchants. The country continues perfectly tranquil. The yield of coffee, the crop of which is now being gathered, is reported as unusually abundant.

I have the honor to be, very respectfully, your obedient servant,


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