On the 3rd of January, intelligence was received that an outbreak had occurred at Caixas, promoted by the adherents of Bruce on learning the fact of his suspension from the presidentship. The interim-president, Lobo, was anxious to re-arm the disbanded troops against them, but this I forbade, telling him that, "in my opinion a military mode of governing was neither suited to the maintenance of tranquillity nor the promotion of obedience to the law, and that it would be better to give the civil law a trial before proceeding to extremities; and that although some outrages had occurred in the heat of party spirit, yet they would probably cease on the intelligence that President Bruce had embarked for Rio de Janeiro." The result was in accordance with these anticipations, for, on learning this fact, the insurgents immediately laid down their arms—being only too glad to escape further notice.

In the expectation that His Imperial Majesty would approve of the act, and that his ministers could offer no opposition, I considered it my duty to the officers and seamen of the squadron, no less than to myself, to obtain repayment from the Junta of Maranham—at least in part—of the sums temporarily left for their use in the preceding year.

It will be remembered that after the expulsion of the Portuguese from Maranham in 1823, considerable sums of money and bonds had been taken in the treasury, custom-house, and other public offices, together with military and other stores—and the value of these, though guaranteed by His Imperial Majesty to the captors, had, with the consent of officers and seamen, been temporarily lent to the then Provisional Government, for the double purpose of satisfying the mutinous troops of Cearà and Piahuy, and carrying on the ordinary functions of Government—there being no other funds available!

At the period of this temporary surrender of the prize property to state exigencies, it was expressly stipulated and fully understood that, as soon as commerce had returned to its usual channels, and with it the customary revenues of the province, the whole should be repaid to the account of the captors. This had not been done, and the officers and men were still losers to the amount, in addition to the non-adjudication of their prizes generally by the Portuguese tribunal at Rio de Janeiro, which, in unprincipled violation of the express decrees of His Imperial Majesty—asserted that "they knew nothing of prizes, and did not know that Brazil was at war with Portugal!" though, in the Imperial order of March 30th, 1823—given for the vigorous blockade of Bahia, His Majesty had explicitly ordered the Portuguese to be considered as "enemies of the empire."—"Distruindo ou tomando todas as forcas Portuguesas que encontrar e fazendo todas damnos possives a os inimigos deste Imperio."

It was further pretended by the tribunal that Bahia and Maranham were not foreign ports, but parts of the Brazilian empire, though, at the time of my appearance before them, both provinces were then, and ever had been, in possession of Portugal; the tribunal, nevertheless, deciding with equal absurdity and injustice, that captures made in those ports, or within three miles of the shore, were unlawful—this decision including, of necessity, the unaccountable declaration, that His Majesty's orders to me to blockade the enemy's port of Bahia, and to take, burn or destroy all Portuguese vessels and property—were also unjust and unlawful! although this was the very purpose for which I had been invited to quit the Chilian service. Yet, notwithstanding this Imperial decision, the tribunal also most inconsistently condemned all ships of war taken (as droits) to the crown, without the slightest compensation to the captors.

But there was still a more flagrant injustice committed, viz. that whilst the officers and seamen were thus deprived of the fruits of their exertions, they became liable to about twenty thousand milreas in the prosecution of their claims; for no other reason than the unwillingness of the prize tribunal to order condemnations injurious to their friends and native country; for as has been said nine out of the thirteen members of the tribunal were Portuguese!

It had, therefore, been long apparent that no adjudication in favour of the squadron was intended, and that its services in having united the empire and saved it from dismemberment, would only be met by continued injustice.

As the property left with the Provisional Government of Maranham had been used for the benefit of that province, and as no part of it had ever been repaid, I determined that those to whom it was due should not, at least, be defrauded of that portion of their claims, or of a reasonable compromise thereof; and therefore I addressed to the interim-president the following letter:—

TO HIS EXCELLENCY MANOEL TELLES DA SILVA LOBO, PRESIDENT INTERINO.
SIR,