Mr. Young to Mr. Gresham.

No. 29.]

Sir: I have the honor to inform you that about sixty days ago the President of Guatemala issued a proclamation to the effect that after the 1st of October there would be an increase of 10 per cent in gold placed upon all imports now taxed. The executive committee of Congress, resident in Guatemala City, opposed this increased tax, denying the authority of the President to enforce this tax, and they, by authority in them vested, issued a call for the meeting of Congress in extra session to take this matter into consideration. The Congress convened on yesterday, and, finding itself without a quorum, could not proceed.

The President issued a proclamation dissolving Congress and assuming the control of the Government and ordering a new election for deputies [Page 153] for November next. The members of Congress here are under arrest, having to report daily to the military commander of this city. The President is to-day dictator, and apparently with absolute power. The situation is grave. However, there is no fear of an outbreak at an early day. I regret to inform you that Honduras is threatened with revolution, and that that Republic may be involved in war at any moment.

I have, etc.,

P. M. B. Young.