Mr. Thompson to Mr. Gresham.

No. 234.]

Sir: Governmental authority seems to be dominant now throughout all the States of Brazil. Since the insurgents, under the leadership of Admirals Mello and Da Gama, were driven from the country, peace has reigned in all parts of the nation, and the vice-president will be able to report to the National Congress, which is about to convene, the complete suppression of the rebellion and the preservation of the Republic. Mello and Da Gama seem to be engaged at Montevideo and Buenos Ayres in the discussion of international comity with Argentine and Portuguese authorities.

The Aquidaban, which was sunk at Desterro, has been raised and will be brought to Rio.

Monday, the 30th of April, the birthday of the vice-president, Marechal Floriano Peixoto, was observed as a holiday and celebrated in honor of the protector of the Republic, who now seems to be eternally enshrined in the hearts of his countrymen.

Business is improving, and now that the war is ended, I shall be able to give more particular attention to the development and expansion of our commercial relations with Brazil. The field is a profitable one, and I hope in time to be able to cultivate it to the satisfaction of the Department.

I have, etc.,

Thos. L. Thompson.