No. 177.
Mr. Scruggs to Mr. Fish.

[Extract.]
No. 19.]

Sir: The State of Panama being so remote and inaccessible from this capital, and the mails so infrequent and irregular, that, up to this time, I have been wholly unable to advise the Department of the condition of affairs there, for the reason that it was impossible to obtain reliable information here.

My latest reliable intelligence from that locality is up to the 27th ultimo. At that time, the political troubles seemed to be over, at least for a season. General Correoso, the insurgent chief, had retreated to the interior, most of his followers having forsaken him, and the supposition was that he was then making his way to Costa Rica. The government of General Niere seemed firmly established, and the State legislature, then in session, had conferred upon him dictatorial powers. His acts have been arbitrary in the extreme; nor does he now hesitate to [Page 352] employ to their fullest extent the extraordinary powers thus conferred upon him. His government, in short, is a despotism under the flattering cognomen of a republic, and yet without any of those guarantees to life and property which a strong government is presumed to establish. Arbitrary arrests are of daily occurrence, and while the criminal code of this country humanely spares the life of convicted murderers, petty officials scruple not to order any citizen to be shot who may hesitate to obey their behests. Forced loans are imposed and collected at the point of the bayonet. The amount thus decreed to be paid by property-owners of Panama is $60,000, and this sum is now being rapidly collected. As yet, however, no foreign resident has been taxed.

During the late insurrection much property was destroyed. Dwellings and stores were sacked in the most savage manner. Among the sufferers are said to be some American citizens, who have made application to Consul Long for redress and compensation, but their names and locality are unknown to me. The presence of the’ United States marines in Panama had a most happy effect, and but for the prompt action of Admiral Almy, the desolation would doubtless have been more general.

There has been, and is still, a general feeling of insecurity among foreign residents and property-owners, especially among those interested in the Panama Bail road. The federal government seems wholly powerless to afford protection to foreign interests there, and even here, in Bogota, there seems developing a public sentiment that the isthmus is merely a source of weakness and expense.

I have, &c., * * * *

WILLIAM L. SCRUGGS.