classes and every subject. The people were educated to the most timid obedience under Dr. Francia, and this obedience continues to its full extent under his successor. An unquestioning and timorous submission to his decrees, a reverential awe and demeanor in his presence, are observed by all," Lieutenant Page continues, "however high their official or social position." "It would seem, indeed," says Sir William Parrish, "that the Paraguayans have been so habituated to a despotism, that they have no ideas or wishes beyond it." (Buenos Ayres, from the Conquest, p. 287.) The natural associate of a despotic system, in Paraguay as well as elsewhere, is a complete system of "espionage," and while nothing is done in that country against the will of the dictator, such is the vigilance of his agents that nothing is done without his knowledge. The extent to which he interferes, even in the social and personal affairs of his people, is almost beyond belief; and the idea that any series of public insults or annoyances could be practiced against foreigners in Paraguay without his knowledge and consent, is wholly inadmissible.

Added to this, General Lopez (or the government, which is the same thing) is understood to be the chief merchant and banker of the country. The commercial, as well as the political, the judicial, and the social affairs of Paraguay are all controlled in a great degree by him. Through monopolies and agents and family connections, he wields a large part of the whole property of Paraguay. A doubt was entertained on this subject in the proceedings before the commission, but the statement, we think, cannot be successfully controverted. It is confirmed by all the witnesses who have appeared in this case, and by every traveler, it is believed, who has written concerning Paraguay.

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With this overshadowing and all-pervading authority of President Lopez, it is not strange that, when he received favorably the employés of the company, on their first arrival in Asuncion, they were also received favorably by his ple. The general agent of the company (Mr. Edward A. Hopkins) had done business in Paraguay for some eight years previous to this arrival, and his relations with President Lopez had always been of the most friendly character. It was through his influence, in some measure, that the expedition had been formed; and besides the assurances contained in the public decree of 1845, he felt that he had a right to rely, in behalf of the company, upon the friendly feelings of

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the Paraguayan government. In this he does not, at first, seem to have been in error. Both he and his associates were received with cordiality; courtesies were freely exchanged with President Lopez; a carriage was presented to him, and suitably acknowledged to the general agent" of the company; lands were purchased without difficulty, and with his concurrence; the use of the old barracks was granted to the company for two years; the requisite peones were supplied. upon easy terms; the natives were courteous and respectful, and the company proceeded to establish itself under the most favorable auspices. In a brief period it had its cigar factory at work in Asuncion, and its saw-mill in operation at San Antonio. It had obtained a desirable site on the river, and was proceeding to employ its other machinery. Its anticipations had been more than realized, and with the arrival of the second expedition, which was soon expected, a new development of its enterprise and further profits were confidently looked for.

President Lopez seems to have been somewhat startled by these results. He saw a new era opening on his country. He was willing to introduce improvements, but he desired to have their control and benefits for himself. He was willing that some of his subjects should be taught a useful trade; but what if they should acquire at the same time some American notions of liberty and right? Where was this thing to stop? Here was a great company, with large means and intelligent managers, planted in the midst of a rich country of undeveloped resources, gradually expanding itself to meet the wants of its position, and destined, if it continued to flourish, to exert a powerful influence in the affairs of all that region. The introduction of a few useful machines or a few individual traders was all very well; but at the possible future of a great commercial company he evidently took alarm. Besides, the improvements being introduced, and some of his people instructed, he saw no reason why he should not employ the improvements and derive the profits himself. These are the motives under which, according to the general opinion on the La Plata, as stated and concurred in by Lieut. Page, and according, also, to all the probabilities of the case, President Lopez and the French minister changed his policy towards the company. In point of fact, according to the testimony of Lieut. Page and others, "on the breaking up of the American company, one of President Lopez's sons immediately went into the cigar

business with these same operatives." Mr. Morales testifies, moreover, that on a previous occasion he had been offered inducements to leave the company and work for President Lopez.

The company was now to be broken up, and the change in President Lopez towards the Americans was at once manifested by the change in the conduct of his people. Their previous civility was now exchanged for rudeness; and where they were before respectful, they were now insolent. All the witnesses testify to the nature of these annoyances. Mr. Hines, however, sufficiently describes them.

"Gradually," he says, "their kind treatment was changed, first from neglect to annoyance, and from annoyance to insults, till it became almost impossible to live in Paraguay at all. Spies were about us to catch every word we might utter, and to watch us about our daily avocations, to repeat to their superiors every word, every act, no matter how trivial. Insults of various kinds were offered the American residents. My wife, a native of the United States, was some months resident with me in Paraguay. Her health was very delicate, and the annoyances and insults she was obliged to suffer had a serious effect upon her health. People have tried to pull her from her horse by catching at her habit when riding rapidly. Our house was beset by a crowd of native rabble, who would throw into our windows sand, stones, bones, oranges, or anything that was within their reach' Upon trying to find the offenders, all would profess innocence.'. The same annoyances, according to the testimony, were practiced towards all the Americans, even including the officers of the Water Witch, and the counting-room of the company was a special object of attack. The assault by a soldier upon Mr. Clement Hopkins, when he was riding with Madame Guillement, is a part of the same history, and shows the general animus which at that period existed in the country towards all Americans. That this animus and those annoyances were really the work of the government, there can hardly be a reasonable doubt. No native of Paraguay would have dared thus to act against its will; and it is equally certain that no native of Paraguay could thus have acted without the knowledge of President Lopez. It is true that on one occasion a guard of soldiers was placed at the house of Mr. Hines, but the annoyances were more frequent while the guard was on duty; and this fact, of itself, indicates the complicity of the government.

The first step, then, which was taken by President Lopez, in order to drive out the Americans, was to excite his people against them, and thus expose them to insult and annoyance. The force of this step can easily be estimated by any one who has resided for any length of time in a distant and half-civilized country. It is no pleasant thing when a man is thousands of miles from own his government, and with the authorities of his residence indisposed to protection, to find himself living in the midst of a hostile population. This step was well calculated to have effect.

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But resort was now had to more decisive measures. The first of these sought to deprive the company of a large part of its estate in San Antonio. This had been bought of Mrs. Bedoya, a widow, some five months before, with the full concurrence of President Lopez and the guardian of minors, and had since been improved for the purposes of the company. copy of the deed of this land will be found among the papers in the case. It was purchased when the company was in favor with President Lopez, and every facility was rendered in the completion of the sale. Among other things the company was relieved by the government from any formal mensuration of the land. There were old barracks, also, on the premises, and President Lopez gave the free use of these to the company for two years. But now his whole policy was changed. Mr. Hopkins had lost his favor, and the company was to be driven out.

By decree of August 16, the title to the land was declared void. Mr. Hopkins was charged with fraud in obtaining, and Mrs. Bedoya was ordered to refund the purchase money. The pretext for all this was that the guardian of minors had not consented to the sale, and that the land had not been measured. The deed itself, however, shows that the guardian had consented, and the evidence is conclusive that the mensuration had been waived by President Lopez himself. Such a decree, under such circumstances, in reference to land bought originally under the auspices and with the approval of the government, occupied for five months without a word of objection, and improved by the company at great cost, scarcely requires a word of comment. It is another step of the Paraguayan Government towards the destruction of the company. Of course, Mr. Hopkins refused to receive back the purchase money, to which there was no provision in the decree for adding any compensation for improvements, and insisted, as he had a right to do, upon the perfect honesty

and legality of his title. The next demonstration was on the barracks. The use of these had been granted to the company by President Lopez himself, for two years from November, 1853. Mr. Hopkins was now notified by a colonel of infantry, that he had orders from the President to take possession of them; and against all protest, this possession, it will be seen from the testimony, was speedily accomplished.

On the 23d of August, President Lopez issued another decree, which was doubless intended, and was certainly well calculated, to effect without any delay or uncertainty, his whole purpose of destroying the company. The decree, in its terms, applies generally to all industrial establishments; but as the company was the only establishment of the kind in Paraguay, its reference to the company was, of course, just as specific and direct as if it had been mentioned by name. The whole decree is directed against the Americans. Some of them, from the injuries they had received, had felt it necessary to arm themselves. This is positively prohibited, under forfeiture of the arms and punishment of the offender. All meetings of foreigners, except for courtesy and diversion, are also forbidden either by day or night. Of course there could be no meeting for purposes of business. The sale of land to foreigners is forbidden, and whenever land is to be sold, the State has the just right to purchase. Sales of land already made without attention to rights are declared void and of no effect; and a special requisition is made upon previous purchasers of land, who have not had a judicial survey, to apply to the government for this purpose, and within six days to file their deeds. Every unlicensed factory is to be shut up within three days, unless within that time the license is applied for. The use of any foreign commercial title is prohibited without the formal knowledge of the government. It is unnecessary to cite the whole of these provisions, for the decree itself is before the commissioners. Its object is as unmistakable as its effect.

An establishment that had been going on for months under the very eye of the government, not only without objection, but with its manifest approval, is now weighed down with conditions which are manifestly inconsistent with its existence. No land, no factory, no title, no general agent, no business meetings-what could be done with the establishment of the company after these prohibitions? Mr. Hopkins tried to avoid the blow; but when he applied for the license, his application was returned because he had signed