No. 294.
Mr. Gibbs to Mr. Frelinghuysen.

[Extract.]
No. 100.]

Sir: In my dispatch, No. 95, I informed the Department that France had recognized this Government. Since then the Argentine Republic has recognized, so that the Government of General Iglesias has been acknowledged by all the principal powers of America and Europe.

* * * * * * *

On the 9th instant a decree was issued saying that the time for forbearance and mercy had passed; that in the future all disturbers of the peace would be severely punished and chastised, according to the laws of the Republic in such cases.

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On the same day another decree was published destroying what little there was left of the freedom of the press, almost prohibiting any expression of thought.

A few days afterward a decree was issued stating that the pecuniary resources of the Government were in such a condition that the administration had to resort to every manner possible toward creating funds, and it was therefore ordered that all persons should take out passports to travel by land or sea within the dominion of the Republic. A small amount, 20 cents silver, for each passport to be collected.

Disturbances are taking place all over Peru where neither party has full power, and troops sent out by this Government often desert.

In the latter part of April some cavalry left here to go to the north. They were 150 in number, and arrived at Pocas Mayo on the 28th of the month mentioned. On the night of the 1st instant they mutinied; ninety-three deserted, taking their arms with them, killing the sentinel and one officer and severely wounding the second in command.

At Huanuco, about 180 miles northeast of Lima, the Cacerists, with a body of Indians, took possession of the place, murdering a number of Chinese and sacking their stores. They also murdered the subprefect and others.

A few days afterward another party of Cacerists entered Huancayo, about 120 miles east of this city, took peaceable possession of the town, and established their own authorities. The Cacerists or Montoneros, as they are called, occupy nearly all of the province of lea on the coast. The line from Mollendo to Peru, on the south, being held by the Chilians, all is quiet there.

I have no doubt that whoever acknowledges the treaty made by Peru with Chili, whether Caceres or another, would try to overthrow the present Government; the Chilians would remain as spectators, and would not interfere save to restrain outbreaks or mob law.

The Chilians are sending off their troops gradually, and have already sent artillery, cavalry, one regiment of sappers, and another of infantry. The cavalry horses are being sold as fast as possible, and everything looks like an abandonment of the country.

If any important changes take place, I will report by cable.

I have, &c.,

RICHARD GIBBS.