Your dispatch of April 3, 1873, refers to General Le Gendre alone, who is not now in the employ of the United States, and was free to accept the offer made to him. This I told the Chinese officials, when they complained that American officers were employed against them; but in respect to Lieutenant Commander Douglass Cassell and Major Wasson, who, I believe, are still in our Navy and Army, I answered them verbally, that as yet there were no hostilities existing, and consequently these officers were not doing anything at which China could complain. It is highly probable that, if the Japanese carry out their designs upon Formosa and Corea, as shadowed forth in Mr. De Long's dispatches Nos. 302 and 309, active hostilities will arise in this part of Asia, which will almost certainly involve us in their issues and conduct. Í may be pardoned, therefore, for bringing this question of employing our countrymen on either side to your notice, after what Mr. Low has written. International law, which is applicable to western nations in times of war, has not been well defined in its application to these oriental powers, and their rulers are in constant perplexity how far they can go. We all wish to encourage them in utilizing foreign skill, science, and integrity in acquiring and applying our arts and improvements for their advantage; and as soon as they become expert in their new powers they are not unlikely to employ them to overcome their enemies.

Peking, May 30, 1874. (Received July 20.) SIR: I have the honor to inclose for your perusal a very clear account of the events which occurred at Shanghai on the 3d and 4th instant, taken from the "Courier," and a copy of Mr. Seward's report of his efforts in aiding to suppress the riot, (inclosure 1,) from which you will learn all that is of importance.

Mr. Seward's position as senior consul at Shanghai gave him much advantage in taking immediate action, and I have heard only one opinion in commendation of his promptness and sagacity. Preventive efforts are always difficult to estimate, but in this case everybody ac knowledges that the landing of a detachment from the United States steamers Ashuelot and Yantic, at the hour it did, was most opportune. The mob was in fact rendered powerless by its appearance. I sincerely hope that the Department will fortify and indorse the public voice by its special approval of his action.

You will no doubt observe on the perusal of the printed narrative that the animus of the editor is strongly against the Chinese, and he does not seem to be disposed to wait till he can hear their side. I do not refer to the mob, for whose conduct I find no excuse, but to the proceedings of the Ningpo guild. It is not easy, at any time, to learn the exact truth about native opinion, but in this instance the views of the guild were early made known, and their temperate memorial (inclosure 2) and liberal proposition to arrange the matter sent to the council three

months before the outbreak, places the latter, by its refusal or vacillation, in a position it could easily have avoided.

It is an outbreak much to be regretted, and its details will be reported through the provinces, I fear, so as to deepen the dislike and dread which is felt against foreigners. In the case of the Tien-tsin riot in 1870 it was easy to deny the truth of the rumors which excused it, that foreigners stole children for the sake of their eyes and hearts; and there are myriads of natives in other places who could corroborate the denial and help to re-assure their countrymen that the facts were otherwise.

But when the native newspapers circulate the story that half a score of their people have been shot or killed in Shanghai for resisting the encroachments of foreigners upon the graves of Chinese buried there, it will strike a sympathetic chord in the hearts of their readers. In a case somewhat similar, when Amaral, the enterprising governor of Macao, was assassinated in 1849 for cutting roads through the graves outside the city, the act was upheld by all natives as a just retribution for the dead. In this case at Shanghai the arguments and facts will tell against foreigners, and there will be very little opportunity to place either of them in a right light.

The argument used by the editor, that the guild knew that the roads had been long before mapped out to be opened through the graves, and the plea that many places in Shanghai, now covered with houses, had once been graveyards, are both entirely aside of the merits of this particular question. However, it is impossible to judge equitably until one knows the facts about the occupation of the French in this part of Shanghai.

I add a copy of my reply to Mr. Seward, (inclosure 3,) and defer further remark until another time. If this riot furnishes a good argument for a fusion of the two settlements, all parties would be ultimately the gainers.

SIR: I have heretofore advised you that a riot occurred in the French settlement on Sunday last.

Up to this moment no official inquiry has taken place in regard to its causes, or the merits of the grievance, as alleged by the Chinese. The consul-general for France has indeed, as it would appear, taken some conclusions, but he has not communicated them to his colleagues; nor do we know of them excepting from the local prints and newspapers. Under these circumstances I shall confine this report to a statement of my own connection with the affair in its various aspects, and I shall transmit to you with it such printed documents as will set forth all the information that I can now communicate.

The riot took place on Sunday, the 3d instant. I was informed of the existence of a difficulty while at my house, more than two miles from the scene, at about half past 6 o'clock in the evening. I at once drove to the residence of Dr. Yates, which was not more than a third of a mile from the place in question. I found that Dr. Yates, his son-in-law, Mr. Seaman, and Mr. Hill, had been observing the tendency of the affair, and they assured me that it was not unlikely to assume serious proportions.

Acting upon a preconceived idea of what should be done under such circumstances, I determined to ask our gunboats to land the largest possible force, and to place them where they could be of most use in a defensive way, and I proceeded to the French consulate to state my information and my conception of the measures which should

be taken. Upon leaving Dr. Yates's house I saw that a fire had broken out, and that crowds of excited people were already moving down the Rue du Consulat, breaking the street lamps, and otherwise indicating their excitement. On reaching the French concession, I told Mr. Godeaux, the consul-general, what I had learned, and expressed my opinion that it would be well to land a force from the gunboats. He at once assented to this, and I proceeded to the Ashuelot and Yantic to secure the same. The commanders of these vessels yielded a ready assent to my request, and actually landed about a hundred men by 8.30 o'clock. Not anticipating that the rioters would have any disposition to proceed further in the face of the fact that this force was in hand, and that a squad of fifteen or twenty men from a French gunboat had been previously landed, I requested the commanding officer of the sailors to take them to the French consulate; I at the same time requested Mr. Bradford to remain with them, and to advise with Mr. Godeaux and the commanding officer in regard to their disposition, giving to him at the same time such general instructions as seemed appropriate. A meeting of the consuls had been called while I was thus engaged, and the hour for assembling having arrived, I proceeded to the place named for it, the Main-guard, to which the municipal council and the volunteers had also been summoned.

The question here arose what course should be pursued; and upon this point the chairman of the municipal council, as commandant of the volunteers, requested instructions from the consuls.

It was my opinion that one or two of the fire companies should proceed to the scene of the fire, guarded by the volunteers and our sailors, in order to put out the fire and make such a demonstration as would overawe the rabble; and this course was determined upon, the consuls and the chairman proceeding with the troops.

I may say that I was assured strongly that this course was the only one which could be pursued, having regard to all interests. If a fire was going on it should be put out. If the rabble was disposed to carry matters farther, nothing less than a demonstration of our ability to suppress them would answer. Neither was any danger to be apprehended. A Chinese mob will not fight foreigners, excepting as a pack of wolves will attack human beings, when in numbers and with full swing for their savagery. A squad of fifty men present during the day near the scene of the trouble, would have overawed the rabble and prevented all bloodshed.

In marching to the locality of the fire, I took about fifty of our sailors with the volunteers. I remained with the commanding officer, and informed both him and the commandant of the volunteers that I would be the sole medium of communication between them. I took this course because the responsibility of landing these men was mine, and because I felt unwilling that they should be asked to do any active work without my full knowledge and assent.

I should say here, that prior to my return to the French settlement from the Mainguard, reports had been received that the police station at the southern river corner of the settlement was in danger, and that Mr. Bradford had gone to its relief with a guard of the sailors.

Upon reaching the scene of the disturbances I found that, as I anticipated, the danger was over. The fire, too, was pretty nearly burned out, it having met obstructions which prevented it from spreading. Such measures were taken, however, to suppress it entirely, as were appropriate.

At this time information was brought that a band of the rioters had taken refuge in the Ningpo Joss-house, a rambling structure covering more than an acre of ground situated at the southwestern end of the settlement. It seemed advisable to determine whether this was the fact, and the force excepting an appropriate patrol moved at once to the place. The Chehsien, or district magistrate, who had previously appeared upon the scene of the riot, accompanied us.

The door of the joss-house, or wei-kuan, was found closed, and upon calling out to those supposed to be inside, no answer was received. Mr. Medhurst and myself then asked the magistrate to break in one of the doors, so as to enable us to make with him an inspection of the premises. This was effected by the foreign firemen with axes, the door selected having been barricaded with coffin material. The entry having been effected, a squad of the magistrate's soldiers with the magistrates and several of the consuls, proceeded to search, but found not one person,

It is likely that no one was there, and that, anticipating such a search, even those who usually occupy it had taken their departure. The force was then marched back to the municipal hall and the French consulate, at which places our sailors were to bivonac for the night.

Signals were agreed upon to call out the volunteers and fire companies if this should be necessary, and at 2 a. m. I returned to my residence.

I should mention that before retiring from the French settlement I waited on the French consul, and through his chancelier proposed a consuls' meeting for the next morning at his office. He returned word, further thanking me for the aid rendered to him, but intimating that he did not care to have me call the meeting. I make this statement not to find fault with Mr. Godeaux, but to be accurate in my narrative.

On Monday morning I proceeded to the French settlement at an early hour, and after visiting the scene of the riot and consulting with Mr. Godeaux, I sent the sailors off to their ships, asking the officer in command to say that if a fresh squad could be landed, it would gratify me. This was done with reasonable promptness, and the men, at my suggestion, bivouacked in an appropriate way. Later in the day I again arranged that a squad of fifty men should remain on shore for the night.

The further occurrences in the French settlement need no comment from me.

On Monday a consuls' meeting was held in my office, a minute of which will be found among the inclosed papers. Mr. Godeaux did not attend this meeting or make any communication to it.

The proclamation of the Taotai, made upon the request of this meeting, will also be found among the inclosed papers. It had not seemed to several of the body quite in accordance with the agreement made with him on Friday; therefore Mr. Medhurst, Mr. Schlik, and myself took advantage of a visit from the Taotai to urge him to issue another one in strict accordance with the agreement with the Taotai, and this has just come to hand.

I have received from several persons testimony to the careful manner in which the French police behaved. They appear to have been admirably handled, and to have refrained from using their weapons when provoked in the most extreme way.

Six Chinese were killed on Sunday. One has died since, and about ten or a dozen more or less severely wounded are under treatment in different places.

It will be found, I fear, that a large proportion of those killed met their death at the hands of persons armed by the French council, or upon no authority and under no adequate restraint.

There would have been no necessity to arm such men, and they might, if appearing on their own motion, have been arrested or turned back, if the riot had been checked at the outset by the landing of a suitable force, which would have left the police free to attend to their proper work.

I have no further details about the injuries suffered by foreigners than those stated in the inclosures. Mr. Fisher, with the modesty characteristic of many foreigners in such cases, values his bruised temple and two departed teeth at 10,000 taels, or $14,000. Rev. Mr. Allen and Mr. Haskell each lost a carriage.

You will see that the consular body have not entered upon the merits of the original dispute. We cannot well do so without an invitation from M. Godeaux or the Chinese authorities. We considered it our duty to state that we would give to either the benefit of our advice, if requested, and to stop there.

I shall not indulge now in remarks concerning the general bearings of the difficulties in question, or of the conduct of the French and native authorities, but may return to the subject hereafter.

I shall be glad to know what course should, in your view, be taken in regard to the losses of our people, as mentioned.

I am not quite sure that the prompt action which I took to land our sailors, especially in view of the fact that the French have charged themselves with the preservation of order in the French settlement, will be approved at first sight; but when it is remembered that American interests in that quarter are really greater than those of the French, and that the houses of the American families-viz, Dr. Yates's, Mr. Allen's, and Mr. Lambuth's-were nearer to the scene of the riot than any others, one would hesitate to say that the landing of our sailors was not called for by the circumstances. To my mind, a riot, here or elsewhere, is to be met as a riot, and to be put down with a strong hand. To this view the Chinese authorities have assented, and both they and the French consul and council have specially thanked me for the aid which I rendered. The judgment which would vacillate at such a moment would, I fear, vacillate in those earlier stages of a difficulty when nothing would be required but a conception of what is right and a disposition to do it.

The riot presents, I think, no occasion for fear of what may come in the future, at least in Shanghai. The Chinese have seen that it is dangerous to proceed to such an extreme, and whatever encouragement they may have received from the way in which their demands were granted, almost at the moment of their demonstrations, they will hesitate to take up such a procedure in the future.

I have, &c.,

GEORGE F. SEWARD, Consul-General.

[Inclosure 2 in No. 35.]

[Extract from the Shanghai Evening Courier.]

THE RIOT IN THE FRENCH CONCESSION.

About 4.30 p. m. yesterday, the fire-bells of the settlement rang an alarm, which, taken in connection with the hoisting of the French flag over the bell towers, indicated the locality to be in the French concession; in which direction, therefore, all the fire com

panies of the Shanghai fire department were promptly on the march. But there was some difficulty in ascertaining the particular part of the concession, and as the firemen were making inquiries, they were met at various points by the information that the fire had been got under by the exertions of the French police and the engine of the M. M. Co. close to which it had taken place. But along with this came the information that the fire was the act of incendiaries, who had not only set fire to a block of buildings, but had violently assaulted several foreigners, who had narrowly escaped with their lives. Further inquiry ascertained that the whole thing resulted from that combination of the Ningpo residents of Shanghai to enforce certain claims they have recently advanced, in connection with their mortuary house of reception, (known as "Ningpo Joss-house,") and its surroundings, to which we drew attention on Saturday evening. An attempt made last night and to-day to investigate that claim with some degree of thoroughness, has made us acquainted with so many conflicting statements regarding it that we cannot feel assured that we have yet arrived at the truth, entire and unmixed. All that we propose to do now is to give as full and correct an account as we have been able to gather of the events of yesterday.

Early in the forenoon crowds had assembled in the open spaces lying between the Ningpo Joss-house, the city wall, and the French gas-works, similar to the crowds that had gathered there for the greater part of the previous week, except that instead of hundreds they had risen to thousands; and their concourse appeared less a fortuitons meeting, and more the result of a deliberate purpose. In fact, it had been communicated to not a few foreigners, by Ningpo men, with whom they were intimate, that the disaffected would on Sunday burn down certain buildings or sections of the concession; but the talk seemed so wild that it appears for the most part to have been allowed to pass unheeded. At all events, those who passed the place at noon, and for the next three hours, observed the whole of the open ground referred to covered with dense groups of Chinese, similar to those which one sees when some popular exhibition is going on, but on closer inspection, gathered from the loud language and fierce gesticulations of those who spoke, and from the sullen and wild appearance of the listening crowds, that they were in no holiday mood. Within the limits above mentioned the Rue Wei-kwei, running parallel with and to the north of the Rue du Consulat, is intersected eastward by the Rue Hué, and westward by the Rue des Pères, forming an oblong block, on the northern face of which is Rue Wei-kwei. At the corner of Rue Hué was a row of Chinese dwellings, west of which is a tenement lately built by M. Percebois, one-half occupied by his own family, the other tenanted by Miss J. Maclean, a British missionary lady; the remaining space, to the intersection of the Rue des Peres, was occupied by a two-story foreign dwelling-house, belonging to M. Charrier, whose outlying stables stretched backward as far as the Rue du Consulat, occupying all the rest of the block except a row of two-story Chino-foreign houses, (mostly occupied by Frenchmen,) forming the west side of the Rue Hué. About 3 p. m. a number of French firemen went up by appointment to the French gas-works, situated to the west of the Rue des Pères and north of the Rue Wei-kwei, abutting on their north front on the Yang-king-pang, the northern limit of the concession. The party went to get their photographs taken. The crowds, catching a glimpse of them going toward the gas-works, came rushing along in that direction. But when they approached the gasworks it is supposed they were induced to think of the seriousness of any too close contact with so explosive and mysterious a substance as gas. What is known is, that, after standing, yelling, and haranguing in the neighborhood of the works, a new direction and object was given to their views. Where they stood they were in view of the house of M. Percebois, to whom it has fallen, as surveyor or master of works to the French municipality, to mark off the improvements contemplated and in progress in the roads that run close to the Ningpo Joss-house. It is at present impossible to ascertain whether the crowd or their ringleaders had any definite programine previously resolved on, or whether the mob was simply excited in a general way, and open to any definite suggestion that might be given at random. What is certain is, that at about a quarter to 4 p. m. a rush was made for Percebois's house; it was beset before and behind by a howling mob; it was entered; he was violently torn out while attempting to defend his wife and a family of young children; he saw his wife dragged out by her hair, and his children fairly pitched into the street. What measures he took to prevent a downright massacre we have not learned. If the elderly Chinaman, who, with arms and legs naked, as if stripped for a fray, was soon afterward found close by Percebois's house, shot through the heart, was killed at this juncture, all we can say is that the violence was justifiable in the circumstances. But however he managed to deter the mob from proceeding to the last extremities, he did succeed, though with his own head laid open, his wife badly beaten and bruised, and his children hurt, though it is not thought seriously, in making his way to the municipal hall, about five hundred yards distant.

Meanwhile, abont half past three, two Scotch gentlemen, Messrs. D. Cranston, of Pootung foundry, and John Weir, chief engineer of the Gordon castle, had called on Miss Maclean, living in the house adjoining that of M. Percebois. They had noticed