No. 108.
Mr. Osborn to Mr. Evarts.

No. 112.]

Sir: * * * The war spirit is in the ascendency and it is likely so to remain until a trial of strength has been had.

President-making is now the order of the day, and I very much fear that this spirit will soon develop into one of President-breaking. The Cabinet is being repeatedly called before Congress for explanations concerning the conduct of the war, and it is now understood that there is soon to be another change in the ministry. The mass of the people, urged on by the politicians, clamor for more activity, while the administration hesitates. The government doubtless fears that a serious reverse would, in the present condition, produce a revolution. I seriously fear that Chili is being threatened by an enemy far more dangerous than the armies of Peru and Bolivia. Her internal political condition is that of confusion, and as each day succeeds the other it becomes more so.

A rumor obtained currency a few days since that the United States Government had determined upon intervention in the controversy, and the newspapers of the clerical party, accepting the rumor as well-founded, proceeded to inform the President as to his duties in the premises.

* * * * * * *

Of course the rumor was of short duration, but the discussion which it produced developed the existence of a strong public sentiment in opposition to dictation from without.

* * * * * * *

I have, &c.,

THOMAS A. OSBOEK