No. 164.

Mr. Scruggs to Mr. Bayard.

No. 230.]

Sir: The Government here received intelligence yesterday, by telegraph from Panama via Buenaventura, that the rebel flotilla in the Magdalena River had been captured near Tamalameque, and that the rebel leader, Gaitan, had been wounded and taken prisoner. It received authentic intelligence of the surrender of General Camargo, near OcaƱa, some days ago.

In consequence of the reported capture of Gaitan and of all the river steamers under his command, it has been determined to dispatch a mail hence, via Honda, to Barranquilla this evening, and I embrace the opportunity to send this and other dispatches.

It now seems probable that the insurrection will soon be put down, although the country is still in extreme disorder, and the troubles may break out afresh at almost any moment. I shall, however, write you more fully on this subject by the next mail.

I have, &c.,

WILLIAM L. SCRUGGS.