Mr. Baker to Mr. Gresham.

No. 24.]

Sir: I have the honor to report that the new Government of Nicaragua, provided for by the peace commission, has now been in power eighteen days, and that the people of the country have, in good faith, loyally accepted the changed condition of things. As was to be expected, there were a few marauders who preferred a condition of war and possible opportunities for promoting their selfish schemes to the public good, but there were not many. Dr. Sacasa, the late President, suffered some personal annoyance from insignificant people, but it is not believed that he was in any real danger. Nevertheless, he deemed it wise to go out of the country for a time until the political sores heal over.

The new administration has addressed itself resolutely to the task of repairing the losses incurred by the war and by precedent civil measures, and in the reestablishment of the credit of the country upon a sound basis.

I am, etc.,

Lewis Baker.