No. 443.

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

No. 241.]

Sir: Rumors come to us from all quarters of Peru of disturbances, marauding bands, and anarchy, but reliable information rarely reaches us. The city of Truxillo is threatened with seizure by montoneros, and the entire north is represented as overrun by bands, while the interior is in little better condition.

General Cáceres’s movements are the subject of infinite reports, but all that appears to be certain is that the Government forces in the region between Ayacucho and Junin have retired before him, and that the general is moving in this direction.

The Government has concentrated most of its forces in and about Lima, the possession of which is vital.

A change has been made in two of the cabinet portfolios—the departments of justice and of government—Mr. Saldivar giving place to a priest named Tovar, and the ministry of government made vacant some time since by the resignation of Aliaga being now filled by the appointment of Joaquin Iglesias, a brother of the President, who is made chief of the cabinet, and therefore successor to the Presidency in case of accident [Page 600] to the President. The President, the Vice-President, and the general-in-chief of the army are three brothers.

An uneasy feeling exists here, while the people have lost spirit and appear hopeless of a better condition for the nation.

I have, &c.,