No. 441.

Mr. S. L. Phelps to Mr. Bayard .

No. 235.]

Sir: The condition of Peru has become even more deplorable through civil war and outbreaks of the Indians who have risen in various sections and appear to make themselves generally masters of the situation. The insurrection in Ancachs, heretofore reported, appears to have assumed greater proportions, while it is reported that Ayacucho has been captured by a division of Cáceres’ forces, assisted by Indians, and it is at least certain that the city has been surrounded by a hostile body of the aboriginals for some time. Reports are also spreading in respect to an uprising in the department of Junin, and the overthrow of the Government.

General Cáceres, as far as can be learned, is moving with some celerity upon the interior departments, and such is the variableness of this people that his prestige has revived, and the lower classes, as I found in the mountain regions, are expecting his arrival in Lima.

The Government, it would seem, has resolved upon awaiting this event in Lima, intending to have the contest here where its troops can possibly be held in hand, or, at least, more relied upon than if sent to distant places.

Upon the whole it seems probable that Lima will again become, within a few weeks, the scene of conflict, while the expectation is widespread that the present Government will be unable to maintain itself.

I have, &c.,