No. 360.
Mr. Settle to Mr. Fish.

No. 16.]

Sir: Since my last dispatch, No. 15, dated the 20fch ultimo, several new phases of the political problem in Peru have appeared. On the 3d instant the President issued an address to the nation, stating that the disorders attendant upon the elections gave rise to a well-grounded fear that the contest would continue to be subversive of peace and good-order, and strongly recommending the electoral colleges to leave all preconceived prejudices upon one side, and cast their votes for a new candidate, of whose honesty and ability the government was satisfied.

The President then proceeded to name Doctor Antonio Arenas, a prominent lawyer and statesman, in this capacity. There can be no doubt that the interests of Doctor Arenas are identical with those of General Echenique, since the latter immediately published a manifesto, resigning all of his claims to the presidency in favor of Doctor Arenas. In this view, the partisans of Messrs. Ureta and Pardo are loud in their protestations against the action of the government in proclaiming an official candidate, and lending its force toward his election, while their efforts in favor of their respective favorites are apparently redoubled.

The question presents a more unfavorable aspect than before, since now the government has openly assumed a leading part in the contest. Congress, as I remarked in the dispatch already alluded to, will doubtless be the arbitrator, if arms are not appealed to before the meeting of that body, and it is extremely difficult to form any speculation as to the result. I greatly fear that the present threatening appearances will lead to serious difficulty.

I am, &c,

THOMAS SETTLE.