No. 10.
Mr. Osborn to Mr. Evarts.

No. 140.]

Sir: On the 3d instant, the Argentine Congress met, and President Avellaneda read his annual message to both houses assembled in the chamber of the deputies, a copy of which I have the honor to transmit with this.

The message seems to be accepted by the public as a very fair statement and a faithful picture of the state of national affairs, and will produce, it is believed, good results, both at home and abroad.

It appears from the message that the total Argentine national debt amounts to sixty-five million five hundred and seventy-two thousand six hundred and twenty dollars, of which more than two-fifths is home debt.

It is claimed that the last year was the first when the exports have exceeded the imports, and that the year 1876 gains a balance of about eleven and a half millions in favor of the country.

The President congratulates the country upon the fact that the national expenditure in the last year was 30 per cent, less than the average of the three previous years, and that while the last Congress voted thirty-one and a half millions for the total expenditures of the year, only twenty-two millions have been expended; thereby the government has made, in the last year, a saving of nine and a half millions, or 30 per cent, on last year’s budget.

The President closes his message by declaring that in his opinion, as [Page 10] three years have now elapsed since the revolution of 1874, it may now be considered as forgotten; and in the name of a generous patriotism declares all persons in exile for military or political offenses may return to the republic unconditionally, and that he would at the earliest opportunity request the senate to restore the superior officers implicated in the revolution of 1874 to their rank in the army, except such as are under trial for ordinary offenses, and at the same time affirms that under the present circumstances the country needs the efforts of all; hence a policy of pacification is requisite.

This proclamation of amnesty in the President’s message to all in exile, and the restoration of the officers of the army to their former rank, who were implicated in the rebellion of 1874, is much discussed, and various are the opinions of the leading men as to whether General Mitre and his officers, who were engaged with him in the revolution, will accept the olive branch of peace tendered by the President and resume their former places in the army.

It is reported, and I think there can be no doubt, that the President and General Mitre have had one or two more private interviews in the last few days with a view to harmonize all political differences between the two parties, that peace and prosperity might be restored to the country.

Rumors are now current that the political differences have been settled between the two parties, so far as the leaders of each party could accomplish such a result, and that General Mitre would soon issue a manifesto to his party and the public. It is hoped, by the commercial portion of the people, that these rumors may be found to be true, as much uneasiness is felt among the business men, which results from rumors of revolution and outbreak every few days.

I am satisfied that President Avellaneda and his administration will go to any proper extent to harmonize and disarm the opposition of any reasonable pretext for revolt or open rebellion; and General Mitre, while a soldier and at the head of the army when the revolution of 1874 broke out, is a man of peace, and has great influence with the opposition, and I think whatever adjustment he may make -or consent to will be accepted by his party.

I am, &c.,

THOS. O. OSBORN.