a young American engineer who had gone to Mexico to take part in the construction of the first piece of railroad built between Vera Cruz and Mexico, gives a concise and picturesque account of the situation:

Things look dark--so dark, in fact, that for the present I do not think it advisable to risk any more money here. There is a fair prospect of the decree of Juarez being annulled. If so, our bonds go overboard. There is a prospect of Juarez signing a treaty. If so, our bonds go up 15 or 20. It is rouge et noire--a throw of the dice. The Liberals have been beaten at Queretaro, where Miramon took from them twenty-one pieces of artillery and many prisoners, among them an American officer of artillery, whom he shot the next day, AS USUAL. Oajaca has fallen into the hands of the clergy. The Liberals under Carbajal attacked Tulancingo, and were disgracefully beaten by a lot of ragged Indians. They are losing ground everywhere; and if the United States does not take hold of this unhappy country it will certainly go to the dogs. There is a possibility of compromise between Juarez and Miramon, the effect of which is this: the constitution of '57 to be revised; the sale of clergy property to their profit; the revocation of Juarez's decree of July about the confiscation of clergy property to the profit of the state; religious liberty, civil marriage, etc.

A gloomy picture, and true enough, save in one respect. The Liberals might be beaten everywhere, but they were not losing ground; on the contrary, their cause rested upon too solid a foundation of right and progress, and the last brilliant exploits of General Miramon were insufficient to galvanize the reactionary party into a living force.

On December 22, 1860, Miramon was finally defeated at Calpulalpan by General Ortega, and shortly after left the country. On December 28 the reforms prepared in Vera Cruz by Juarez, proclaiming the principles of religious toleration, and decreeing the confiscation of clergy property, the abolition of all 13 religious orders, and the institution of civil marriage, etc., were promulgated in the capital by General Ortega; and on January 11,1861, Juarez* himself took possession of the city of Mexico. The Liberals were triumphant, and the civil war was virtually at an end.

* Benito Pablo Juarez was of Indian birth, and as a boy began life as a mozo, or servant, in a wealthy family. His ability was such as to draw upon him the attention of his employer, who had him educated. He soon rose to greatness as a lawyer, and then as a member of the National Congress, governor of Oajaca, secretary to the executive, and president of the republic.

The defeated army, as was invariably the case in Mexico, dissolved and disappeared, leaving only a residuum of small bands of guerrillas. These preyed impartially upon the people and upon travelers of both parties. Leonardo Marquez almost alone remained in the field and seriously continued the conflict. The principal leaders fled abroad, especially to Paris, where they made friends, and planned a revenge upon the victorious oppressors of the church, whose outrages upon God and man were vividly colored by religious and party hatred. Among these were men of refinement and good address, scions of old Spanish families, who, like M. Gutierrez de Estrada, found ready sympathy among the Emperor's entourage. As a rule, none but "hopelessly defeated parties seek the help of foreign invasion of their own land"; but the Empress Eugenie, who, a Spaniard herself, was a devout churchwoman, lent a willing ear to the stories of the refugees, impressively told in her own native tongue. To reinstate the church, and to oppose the strong Catholicism of a Latin monarchy to the Protestant influence of the Northern republic, seemed to her the most attractive aspect of the projected scheme.

The struggle that had been carried on for so many years in Mexico with