Mr. Thompson to Mr. Gresham.

No. 134.]

Sir: Following my Nos. 121 and 122, December 31, I have the honor to report comparatively little firing by the insurgents on Rio de Janeiro having taken place. The fighting has been confined mostly to the islands and fortified points beyond the confines of the city, and within a few days the insurgents have taken forcible possession of an island used as a coal depot, and with it captured a large quantity of coal belonging to the Royal Mail Steamship Company of England.

Up to the time Admiral Mello left the bay no very serious interruption of our commerce had occurred. Since the advent of Admiral Saldanha da Gama to the command of the insurgent forces, many impediments to its free operations have been experienced, owing to his efforts to stop the passage of goods to the custom-house and the apparent change in the attitude of the foreign naval forces from the more effective position taken by them against Mello, The several American ships, [Page 106] however, that went to the docks on their own responsibility and with the consent of the Government have discharged and taken on cargo without interference. Some German and other foreign ships have also proceeded with their operations without interruption. I trust this may continue, but the object of the insurgents being to deprive the Government of the revenues of the custom-house, there can be no assurance of it without the moral support of the naval forces of the powers respectively interested. The Germans have maintained independently the position taken by all the powers in regard to commerce against Mello.

With regard to the question of bombardment, the inclosures herewith of correspondence will explain the situation, the most important feature of which is the withdrawal on the 2d instant of the engagement of the commanders to prevent bombardment and the reply of the Government on the 8th instant to that communication. The arrangement, however, for notice of forty-eight hours continues in force with both the Government and the insurgents.

Inclosures from Consul Burke at Pernambuco explain the situation at that point, which, at last accounts, the 4th instant, was quiet.

Private information of a reliable character from Sao Paulo, Minas, San Francisco, and other points advise that the people of the interior are loyal in their support of the Government, and no advices to the contrary has come to hand. Concerning the question of the Government’s finances mentioned in my No. 121, I am creditably informed that under the administration of Deodora Fonseca banks all over the country were authorized to issue notes to be used as currency. This privilege was much abused when, under Peixoto, Congress withdrew the privileges to all except the Banco da Republica of Rio de Janeiro, and the notes in circulation were redeemed, or are being redeemed, at par by that bank, which is alone authorized to issue money for general circulation. This bank not having on hand notes sufficient was furnished by the Government with the old blank Imperial notes, thousands of which were on hand, and they are being signed by the bank officers as required by law, and not by the treasury officials. These notes are generally accepted by the banks of the country.

The Aquidaban, Admiral Hello’s flagship, returned from the south and entered the bay under heavy fire from the forts this morning between 4 and 5 o’clock. It is stated, by some of our naval officers that Admiral Mello is not on board.

I have great pleasure in reporting also the arrival of the San Francisco at 8 o’clock this morning, with Rear-Admiral Benham, whom I hope to see to-morrow, having been engaged to-day with this mail.

I have, etc.,

Thos. L. Thompson.
[Inclosure 1 in No. 134.]

Mr. Burke to Mr. Thompson.

Sir: I have the honor to report that since my dispatch of December 13 affairs have remained in statu quo; no disorder, no disturbance of any kind has taken place in the city. Rumors of difficulties between the citizens and soldiers in the interior have come to my ears. I have reason to believe that some conflicts have taken place in the interior between citizens there and soldiers sent from here by the Government. [Page 107] This information comes from what I regard a reliable source. I do not know how serious the conflicts were or what effect they may have upon subsequent events. The state of siege which was decreed to continue to the 25th will I presume be prolonged, though I have not as yet received any notice of its being extended. Quiet reigns throughout the city. The steamship Nictheroy, which I cabled you arrived on the 14th, is still in port. Why it should remain so long here seems to be shrouded in mystery. Five days after her arrival there was a rumor of a mutiny on board, and 60 or 70 men in irons. That there was an attempt at mutiny I have reason to believe, but the vigilance and firmness of the officers crushed it out before it developed any strength. From information I receive from Capt. Baker, in charge of the Nictheroy from New York here, the said steamship was taken possession of by the Brazilian authorities on the 15th, one day after her arrival at this port. From the day of her anchoring in the harbor outside the reef up to the 18th no one from the ship communicated with the shore.

On the 18th Mr. Bryson, of the New York Herald, Mr. Fontaine, of the World, and Mr. Mariotte, of the Associated Press, came on shore against the wishes of Capt. Baker, as they stated. The following day from 55 to 60 of the crew, including Mr. Judge, a gunner on board, and Mr. Conway, one of the lieutenants, were allowed to land. These officers and men are still in the city, waiting a steamer to take them to New York.

According to the agreement signed between Salvador Mendonca, minister to the United States from Brazil, and the officers and crew of the Nictheroy, the Brazilian authorities here were to arrange passage of those not willing to enlist, to return them to New York. I am informed that the matter is now under consideration, and that they will be sent by the first opportunity. With the exception of the two officers mentioned and the 65 to 50 men that were landed, the rest are still on board, viz, 160 or 170 all told. It is stated by some, the reason the cruiser, as it is called, does not proceed to Rio is that the Government is not willing to accede to the terms proposed by officers and crew willing to enlist. Others say that the ship has not been paid for, and that Flint & Co. have given orders not to proceed until payment is made. There is still another rumor that the captain and officers refuse to be under the supervision of any Brazilian officers, of which there are some on board, together with a hundred of more cadets from the military school at Ceara. These, however, are rumors. I do not know whether there is any foundation for them or not. At all events, the ship is still in port. The America has not arrived. It is said a mutiny arose on board the America after leaving New York, and that she put into St. Thomas or Martinique. It seems, from information requested by this consulate from Capt. Baker, that neither officers nor crew were shipped before the U. S. shipping commissioner, nor was there any clearance from the custom-house in New York, and that she sailed under the Brazilian flag; therefore this consulate has no jurisdiction in the matter, and in case of any ill treatment by the Brazilian authorities toward this crew the consul can not interfere in his official capacity, as it would devolve upon him to do were they regularly shipped seamen.

He can only act as he would in case of complaint by any American citizen. However, as far as I can learn, the Brazilian authorities here are treating the men fairly and properly, and doing what they can to return them to New York as soon as possible. Should any events of importance occur later will communicate them.

I have, etc.,

David N. Burke,
U. S. Consul.
[Inclosure 2 in No. 134.]

Mr. Burke to Mr. Thompson.

Sir: I have the honor to report that since my dispatch of the 26th ultimo martial law, as I cabled you on the 27th, has been extended to the 31st of January. As I also cabled on the 2d, the America arrived at this port under the Brazilian flag on the 31st ultimo. On the same day, shortly after the America anchored, the U. S. steamship San Francisco, under command of Admiral Benham, who now has charge of the South Atlantic squadron, arrived in this port. Having taken some coal, the San Francisco left here yesterday, proceeding to Bahia, where she will take more coal and then proceed to Rio. I am reliably informed that satisfactory arrangements have been made by the Brazilian Government with the officers and crew of the Nitcheroy, and that she will shortly proceed to Rio. I am informed also that there are about 120 of the crew and all the officers except two, that brought the ship from New York, enlisted, [Page 108] Negotiations are now pending between the Brazilian Government and the officers and crew of the America. When any result is reached will communicate it. Quiet reigns in and about the city. Mr. Mariotte, of the Associated Press, and Mr. Fontaine, of the World, left on the San Francisco.

I am, etc.,

David N. Burke,
U. S. Consul.