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sion of a popular outbreak against the British 

 residents. Foreigners as well as natives with 

 perfect unanimity declared themselves strongly 

 opposed to the proceedings of the English min- 

 ister. Excited meetings were organized in the 

 open street, and the speakers implored the 

 people to make no reprisals upon English 

 property, and to refrain from molesting English 

 residents, but at the same time to encourage 

 the Government to resist. The emperor and sev- 

 eral of the cabinet ministers found it necessary 

 to address the people, to urge them to remain 

 quiet, and to trust to the Government the vin- 

 dication of the national honor. Lists of volun- 

 teers were opened, and immediately filled ; dep- 

 utations were formed to congratulate the min- 

 istry upon its attitude, and liberally responded 

 to by the citizens, some giving as much as 

 1,000. The shareholders of the bank demanded 

 that a resolution should be passed not to dis- 

 count the paper of English houses, and procla- 

 mations were issued, inviting the people to ab- 

 stain henceforth from using any description of 

 English goods. On January 6th the Brazilian 

 Government, by the advice of the councils of 

 state, determined to accept the new proposition 

 of Mr. Christie, according to which the following 

 arrangement was concluded : The prizes are to 

 be restored. The Brazilian minister in London, 

 if so required by the Britisli Government, will 

 pay, under protest, whatever sum may be de- 

 manded to the owners of the Prince of Wales. 

 With respect to the treatment sustained by the 

 officers of the Forte, it shall be submitted to 

 the arbitration of the King of the Belgians to 

 decide whether or not such treatment should be 

 regarded as an outrage upon the honor of the 

 British navy. Upon the receipt of this news in 

 England, the extreme and summary measures 

 adopted by the British Government were se- 

 verely censured by the liberal press. Meetings 

 of merchants, engaged in the Brazilian trade, 

 expressed their disapprobation. The matter 

 was brought up in the House of Commons, 

 when Mr. Layard, in the name of the Gov- 

 ernment, admitted that Mr. Christie acted un- 

 der instructions from the Government, and 

 expressed the hope that the matter would be 

 soon amicably settled. 



Another collision toward the close of the 

 year took place in the river Amazon between 

 the Brazilian authorities and two vessels of 

 war lately built in Great Britain for the Pe- 

 ruvian Government. Some time previous the 

 Peruvian Government had entered into a con- 

 tract with the Brazilian company, " Companhia 

 de Xavigacao e Commercio do Amazonas, 1 ' for 

 the conveyance of mails, &c., on the upper wa- 

 ters of the Amazon. For a year previous to 

 the expiration of the contract payment was 

 withheld by the Peruvian Government on one 

 pretext or another, and, finally, it refused to 

 pay at all, on the plea that verbal notice had 

 been given to the Amazon company that the 

 (written) contract was no longer in force. The 

 Amazon company consequently instructed their 



agent at Para, at the mouth of the Amazon, not 

 to take any more cargo belonging to the Peru- 

 vian Government, and to give notice that after 

 the end of the year no cargo destined for Peru 

 would be taken on board the company's steam- 

 ers. The Peruvian Government was thus put 

 in great embarrassment, for by a convention 

 existing between the Governments of Peru and 

 Brazil it was distinctly stipulated that no goods 

 shall be taken up the Amazon in Peruvian ves- 

 sels until the limits of the two countries were 

 mutually agreed upon. About the middle of 

 October, 1862, the Peruvian war steamers Mo- 

 rona and Pastaza arrived at Para, and professed 

 that they were going up the Amazon for the 

 purpose of assisting in marking the boundaries 

 between Peru and Brazil. To the surprise of 

 the Brazilians, a few days subsequently, the 

 Morona took in a general cargo, mounted her 

 guns, and, in disregard of a formal intimation 

 from the president of Para that she could not, 

 without direct violation of the convention ex- 

 isting between the two countries, proceed on 

 her voyage, the anchor was weighed, and the 

 Morona steamed up the river, followed speedily 

 by the Pastaza. The president of the province 

 immediately sent after them a fast steamer, the 

 Belem, belonging to the Amazon company, on 

 board of which he placed two hundred artil- 

 lerymen and some nine -pounder guns. The 

 Belem overtook the Morona at a place called 

 Gurupa, and her commander at once ordered 

 the Morona to return to Para. This order be- 

 ing set at defiance the Belem proceeded to the 

 fortress of Obidos, which she reached six hours 

 before the Morona, so that when the latter ar- 

 rived at Obidos the fortress fired two blank 

 cartridges for her to bring to. In reply the 

 Morona fired a shot, upon which the fortress 

 fined eight shots at the Morona, and the latter 

 replied with round shot and canister. Xo in- 

 jury appears to have been done by this ex- 

 change of fire, and the Morona proceeded on her 

 voyage. The Pastaza soon after leaving Para 

 got ashore, but floated with the rising of the 

 tide, and returned to Para. These events had 

 created great excitement in Para, and the Bra- 

 zilian Government had ordered several of their 

 vessels of war to rendezvous at the mouth of 

 the Amazon. 



Brazil lias been making of late great progress 

 in civilization and material prosperity. Gari- 

 baldi, who was for some time clerk in an Eng- 

 lish house in Rio de Janeiro, built about the 

 first ten miles of railroad ever constructed in 

 Brazil. Since then other roads have been made : 

 the demand for steamboats on the Amazon be- 

 gins likewise to be supplied ; docks were con- 

 structed and used at Rio de Janeiro in 1861 ; 

 in 1862 the first ferry boat was taken to Rio 

 de Janeiro from the United States. Particular 

 attention is paid to the encouragement of Eu- 

 ropean emigration, although the efforts of the 

 Government have been thus far only partially 

 successful. The most numerous emigrants come 

 from Portugal and the Azore Islands, and they 



