No. 363.
Mr. Brent to Mr. Fish.

No. 32.]

Sir: During the past month the political situation in Peru has materially changed. Don Manuel Pardo, a short time since apparently the most powerful of the presidential candidates, is now eclipsed by the favorite of the government, Doctor Arenas. This is due to three causes: first, the active interference of the government agents throughout the country in Doctor Arenas’s behalf; second, the establishment of the new national bank of Peru by Messrs. Dreyfus Brothers; and, third, to the change from viva-voce voting to balloting, adopted by the standing committee of congress in the election of senators and representatives for the legislature of July next.

Messrs. Dreyfus & Co., it will be remembered, are the financial agents of the government, and even now have almost entirely monopolized the export and sale of guano. The interests of the government are therefore identified with their house, and Pardo was the chief of the opponents to Dreyfus in the guano contract. In the bank referred to the government appears as a shareholder for two millions of soles, Dreyfus taking four millions. Eight millions of stock were offered to the public, and in Lima alone, in ten days, more than twenty millions were subscribed for. This clearly shows the desire of the people for a continuance of peace and tranquillity, and the government thus possesses an arm against which it is thought Mr. Pardo’s most vigorous efforts will fail.

The question of balloting has proved that some of the members of the permanent committee have thought proper to change positions, and wish to conceal their present sympathies.

The senators and representatives now to be selected choose, in their turn, the President of the republic at the next session of congress.

As nearly every district in Peru is contested, it is not difficult to foresee that the supporters of the government will be qualified.

It is satisfactory to add, however, that the republic is at perfect peace, and that, at present, no fears of revolution are entertained.

I am, &c,

H. M. BRENT,
Chargé d’Affaires ad int.