Ship's Company, O'Higgins.

N.B.—Warre One Single Sentiment his not been fulfilled.

This letter, though somewhat incomprehensible, was intended as a farewell complimentary address to myself, previous to the desertion of the flag-ship; and, had this taken place, there was no doubt that the ships' companies of the whole squadron would have followed the example, so that the Protector would have gained his ends, in spite of my endeavours to keep the men faithful to the flag under which they were engaged to serve.

Fortunately for Chili and myself, an occurrence took place which averted the evil, and was brought about by the very means which the Protector had devised to promote his individual views.

The occurrence alluded to, was the embarkation of large sums of money by the Protector in his yacht Sacramento, which had cast out her ballast to stow the silver, and in a merchant vessel in the harbour, to the exclusion of the Lantaro frigate, then at the anchorage. This money was sent to Ancon, on the pretence of placing it in safety from any attack by the Spanish forces, but possibly to secure it for the further purposes of the Protector. The squadron having thus ocular demonstration that its arrears could be paid, but were not, both officers and men refused longer to continue in a service which had brought them nothing but prolonged suffering.

My own views coincided with theirs, and I determined that the squadron should be no longer starved nor defrauded. I therefore sailed to Ancon, and personally seized the treasure, before witnesses; respecting all that professed to belong to private individuals, and also the whole of that contained in the Protector's schooner, Sacramento, considering it his private property, though it could not have been other than plunder wrested from the Limeños. Independently of this yacht-load of silver, there were also on board, seven surrones (sacks) of uncoined gold, brought down on his account by the Legate Parroisien; so that, after all the moveable wealth of Lima was supposed to have been previously deposited for safety in the castles of Callao, but carried off by Cantarac, the condition of the unhappy Limeños may be imagined, from the additional sums of which they were subsequently deprived.

I immediately made proclamation, that all private individuals, having the customary documents, might receive their property upon application, and considerable sums were thus given up to Dr. Unanue, Don Juan Aguero, Don Manuel Silva, Don Manuel Primo, Don Francisco Kamirez, and several others, though connected with the Government. Besides which, I gave up 40,000 dollars to the commissary of the army, who claimed it; so that, having returned all the money for which dockets were produced, there remained 285,000 dollars, which was subsequently applied to the payment of one year's arrears to every individual of the squadron; but relying on the justice of the Chilian Government, I took no part myself, reserving the small surplus that remained for the more pressing exigencies and re-equipment of the squadron.

Accounts of the whole money seized, were forwarded to the Minister of Marine at Valparaiso, as well as vouchers for its disbursement, and in due course, I received the approbation of the Chilian Government for what had been done.

General San Martin entreated, in the most earnest terms, the restoration of the treasure, promising the faithful fulfilment of all his former engagements. Letter after letter was sent, begging me to save the credit of the Government, and pretending that the money seized was all the Government possessed for indispensable daily expenses. To this I replied, that had I been aware that the treasure spared in the Sacramento was the property of Government, and not that of the Protector, I would have seized it also, and retained it till the debts due to the squadron were liquidated. Finding all arguments unavailing, and that no attention was paid to his threats, the Protector—to save the credit of his Government—addressed a proclamation to the squadron, confirming the distribution which was going on by my orders, at the same time writing to me, that I "might employ the money as I thought proper."

San Martin afterwards accused me to the Chilian Government of seizing the whole of the treasure, that in his yacht included, which, at a low computation, must have been worth several millions of dollars, which were all left untouched. He also asserted, that I had retained the whole belonging to private individuals, though each real claimed was given up, as was well known to every individual concerned, and he also knew that I did not retain a penny on my own account. Nevertheless, he added, that I had kept the whole myself,—that, in consequence, the squadron was in a state of mutiny, and the seamen were abandoning their ships to offer their services to the Government of Peru! the fact being, that those who went on shore to spend their pay after the fashion of sailors, were prevented from returning on board, a lieutenant of my flag-ship being put in jail for attempting to bring them off again.