Mr. Thompson to Mr. Gresham.

[Telegram.]

Mr. Thompson reports are markable prevalence of good order in Rio de Janeiro. The insurgents do not appear to make any progress, and the daily fighting in the bay and along the shore is attended with no important results. The Government fire destroyed two powder magazines on islands held by the insurgents. Two English officers, whose bodies have not been found, and 1 sailor were killed and 5 injured by the last explosion. The newly-appointed minister for foreign affairs is a deputy from Rio Grande do Sul, an insurgent province whose leaders are averse to act with Admiral Mello. The Government cause is believed to have been helped by the latter’s movements.

A Government force of 1,500 men is now advancing from Paranagua, where ammunitions and supplies have been sent from Bahia by Vice-President Peixoto, for the purpose of driving the insurgents from Catharina Island, which they hold. Its population amounts to 12,000, but the remainder of the State on the mainland is still loyal to the Republic.