to the torture.

MEXICO

The Mexican Congress assembled in the Capital on the first of January,
when General Herrera, the President, made his annual address. He dwelt
with satisfaction on the relations existing between the United States
and Mexico, considering them much more harmonious and mutually
advantageous than was anticipated at the close of the war. The financial
condition of the country has been somewhat improved by the retrenchment
of the Government expenses and the consolidation of the Interior Debt: a
revision of the Revenue Laws is strongly advocated as a still further
reform in this direction. President Herrera favors the colonization of
the public lands by immigrants from Europe; he also alludes with
satisfaction to the increase of manufactures and the improved prospects
of the silver mines, which last year yielded upwards of $30,000,000.

The two branches of Congress met on the eighth, to count the votes for
the election of the President of the Republic. The votes of twelve
States were found to be in favor of General Arista. He was consequently
declared to be duly elected. On the fifteenth, in the Chamber of
Deputies, in the presence of the Mexican Congress, he took the oath of
office and made a short inaugural address, in which he alluded to the
maintenance of the federal system as necessary to the prosperity of the
country, and pledged himself to preserve peace and order at all hazards.
The President of Congress, Don Mariano Yanez, replied in a short address
of congratulation. Te Deum was chanted in the Cathedral in the presence
of the new President, and in the evening the German residents honored
him with a serenade and torch light procession. Arista's Cabinet is
composed as follows: Minister of Foreign Affairs, Don Mariano Yanez;
Minister of Justice, Don Jose Maria Aguirre; Minister of Finance, Don
Manuel Payno; Minister of War and Marine, Don Manuel Robles.

Early in January a rebellion broke out in the State of Guanajuato. The
insurgents, headed by two brothers named Liceagas, obtained possession
of the city of Guanajuato, with the Government arms and ammunition, but
were defeated on the night of the 13th by the Government troops under
Generals Bustamente and Uraga. Several of the chiefs were executed, and
the movement, which was in favor of Santa Anna, was entirely crushed.

The Tehuantepec treaty was ratified on the 25th of January. On the
following day, Mr. Letcher, the American Minister, l