On learning the panic which had been created in Pernambuco, by the show of bombardment, and its anticipated repetition in earnest on my return, General Lima pushed forward towards the capital with no more formidable opposition than a few desultory skirmishes; and on the 11th of September, with the co-operation of the naval officers and seamen there left, took possession of the city, Carvalho retreating into the suburbs, where, breaking down the bridge which united them, he entrenched himself. On the following day, it was said that General Lima found in the treasury 400,000 dollars; perhaps the same which Carvalho had offered to me as a bribe to join the republican party.

The Piranga arriving at this juncture with a convoy bringing eight hundred additional troops, preparations were made to attack Carvalho; but the insurgent president, making his escape on a fishing raft, took refuge on board the British corvette Tweed, and afterwards got to sea.

During the interval which elapsed between my departure for Bahia and my return to Pernambuco, the distribution of prize money amongst those entitled to it took place, the flagship and the Maria de Gloria being paid at Bahia, and the rest at Pernambuco. As His Imperial Majesty had left me altogether unfettered by orders or instructions, and as he had given the 200,000 dollars to be used in furthering the Imperial objects, I determined not to regard the advances which had been made at Rio de Janeiro, as forming any portion of the reward, especially to the flagship, which had, unaided, achieved the more important results of the late campaign, and was therefore entitled to a share commensurate with the arduous exertions of the officers and crew, now again under my flag.

The subjoined extracts from the log of my secretary will shew the periods at which the distribution took place:—

Sept.10th. Made distribution of prize money in silver.

Sept.15th to 16th. Went on board the Maria de Gloria, and paid prize money.

Sept. 17th. Paid Capt. Crosbie, 10,400 dollars in specie. Paid other officers 5750 dollars.

Sept. 18th. Paid Admiral 4750 dollars.

Sept. 27th. Paying prize money to the Paraguassu and others.

Sept. 28th. Similarly employed.