Mr. Thompson to Mr. Gresham.

No. 17.]

Sir: Since the transmission of my dispatch No. 3, dated September 11, I have the honor to report briefly that there is no apparent improvement in the political situation here, if indeed it is not becoming more complicated. No popular demonstrations on the part of the people have been made and very little interest is manifested in the contest, which seems to be confined to the army and navy, the former supporting the President and civil authority and the latter Admiral Mello, who is in command of the revolting squadron. The disaffection extends throughout the entire naval force of the Republic. On the 11th instant martial law was proclaimed for ten days. In addition to what I have otherwise given and for further particulars concerning what has transpired, I inclose excerpts taken from the Rio News, a paper published by an American citizen, and which affords in detail the most reliable information to be had at this time.

I have, etc.,

Thos. L. Thompson.