Acting Secretary Bacon to the American Embassy at Petropolis.

[Telegram.—Paraphrase.]

(States that it is reported by flour shippers that satisfactory trade has resulted from preferential reduction, but that they are advised from Brazil that a heavy increase in the duty on flour is contemplated, to become effective January 1 next. Says that department assumes that this can not be true, in view of his telegram of the 23d ultimo, and asks what the chances are for a renewal for next year of the existing preferential list, with some imported products added.)