Mr. Thompson to Mr. Gresham.

[Extract.]
No. 184.]

Sir: Following my No. 170 of February 15 there has been nothing of material moment to report, aside from the continued exchange of shots between the hostile parties on the bay and the casualties resulting therefrom.

The Aquidaban, on the morning of the 21st, left the harbor under a heavy fire from all the forts and land batteries, but, as far as known, escaped without any serious injury. The Republica was off the entrance of the harbor at the time, and was joined by the Aquidaban, the two proceeding south, but shortly changed their course to the east, and nothing definite has since been heard from either.

The Nictheroy (late El Cid) on the 18th arrived at the entrance of the harbor, landed several hundred troops, and then proceeded to Bahia, from whence she had come. The Santuit, an American steamship, at about the same time arrived and landed a number of troops.

The latest advices from Bahia report all Government vessels in that harbor and everything quiet.

On the 24th the insurgents lost the steamship Venus, a refrigerating vessel which had been transformed into a war ship. The vessel was blown to pieces, but whether caused by a shot from the forts or by the accidental explosion of the boilers has not been ascertained.

No reliable news of military operations in the south has been received.

The Provisional Government of the insurgents at Desterro having failed, another attempt is being made to organize at Curitiba, capital of the State of Parana. There can be no doubt now but what the insurgents control this town and State, but whether the organization will be perfected and exist with any degree of stability can not be foretold at present. The northern States are quiet and the seeds of rebellion sown in Pernambuco appear to have perished.

The yellow fever has become epidemic at Rio, especially upon the vessels that have been moored to the docks. The deaths average, according to official figures, about fifty-five a day, which represents in the larger part foreigners. Several deaths have occurred on the foreign ships of war, but none so far on ours.

[Page 137]

In consequence of the prevailing epidemic Admiral Benham has been sending our ships temporarily to sea, and has now cat off all communication with the shore except in cases of urgent necessity.

I have, etc.,

Thos. L. Thompson.