Mr. Washburn to Mr. Seward.

Sir: The Brazilian squadron that had been collecting off this port for several months finally got ready to move, and went up to the “Paso de la Patria,” a pass in the Parana, some five leagues above its confluence with the Paraguay, in the last days of March. A few of the vessels composing the fleet remained at the mouth of the Paraguay for the purpose of blockading that river, but the main portion, including the four iron-clads, went up and took their station opposite Itapiru, a strong fort that the Paraguayans had erected on their side of the river. Firing was soon commenced from the fort upon the ships, and from the ships upon the fort; but little damage seemed to be done, however, on either side, though the firing was tolerably accurate and well sustained. Nearly all the damage sustained by the squadron was from a single shot from a rifled cannon that entered a port-hole of an iron-clad, killing twenty-seven, including her commander and two next principal officers, besides wounding several others. Just above Fort Itapiru there is a small, low island, not more than half a mile from the Paraguay shore. After the cannonading had been kept up for some [Page 573] days from the ships, the Brazilians suddenly threw upon the island, in the night, some two thousand troops, with some of their heaviest guns. They immediately began to intrench, and, when the morning broke, opened furiously on Itapiru. The firing was sharply returned, but it was not sufficient to do any material damage, and it was evident that the fort was fast falling to pieces. The Paraguayans, however, kept up the cannonade on their part, generally giving shot for shot; and this sort of bootless warfare was kept up for several days. On the morning of the 9th instant, however, the Paraguayans attempted the desperate adventure of trying to drive the Brazilians from the island, and at about 3 o’clock in the morning they sent over a body of a thousand men in small boats, who undertook to surprise the Brazilians; but in this they did not succeed, for they were so warmly received that they soon signalled for re-enforcements, and some five hundred more were sent to their support. But by the time the daylight began to show where they were, the gunboats got into position to bear upon them, and such as could get away betook themselves to their boats, which were terribly riddled before they touched the Paraguay shore. It is thought two-thirds of this party never returned to the other side of the river. I have no accurate information in regard to the number, however. I hear it estimated from eight to fifteen hundred.

On the 16th the Brazilians began to pass their troops over to the Paraguay side, beginning late in the afternoon, and passing over some thirty thousand the same night. The Paraguayans made little or no resistance to their landing, but fell back from the river, abandoning Fort Itapiru, which was found completely knocked to pieces. Since then the allies have passed over most of their remaining troops, and it is said they have no less than fifty-five thousand troops on the soil of Paraguay. They are now engaged in taking over their cavalry and artillery, together with the necessary supplies. They are also steadily advancing and intrenching towards Humayta, where it is supposed the Paraguayans will make their last stand. If this point should be taken, there will be nothing to prevent the allied squadron from going right up to Asuncion, and it is supposed that before that time Lopez will try and run away. He may, however, fall back into the interior, and attempt to carry on a guerilla war, though it is impossible he should hold out long at that. I think the war will be virtually at an end when Humayta is taken, and every one here regards that as only a question of time. With the immense advantages of the allies in all material resources, it does not seem as though the place could possibly hold out a fortnight longer. The season is now very favorable for both military and naval operations. The rivers are high, so that the iron-clads have plenty of water for moving up near the shore, and the weather is cool and healthful. I shall be greatly disappointed if the next fortnight does not show a great change in the situation. In fact, I regard Lopez’s cause as so hopelessly lost, that the sooner he succumbs the better it will be for all parties, especially his own people.

I am, sir, very respectfully, your obedient and humble servant,

CHARLES A. WASHBURN.

Hon. William H. Seward, Secretary of State, Washington., D. C.