File No. 893.00/1868.

The American Chargé d’Affaires to the Secretary of State.

[Extract.]
No. 963.]

Sir: Continuing my No. 947 of July 29th, I have the honor to report that since that date the Government has been generally quite successful in its engagements with the rebels. * * *.

With the flight of the principal leaders, the rebellion as an organized movement may be said to have collapsed, but there must still be some fighting before order can be restored in the disturbed provinces and the sectional feeling has been increased rather than lessened. The Government is in a stronger position than ever politically, but until it can control the sources of revenue its position must be considered very precarious.

I have [etc.]

E. T. Williams.