The principles upon which these demands rested could not be seriously questioned, but it was suggested by the Spanish Government that there were grave doubts whether the Virginius was entitled to the character given her by her papers, and that therefore it might be proper for the United States, after the surrender of the vessel and the survivors, to dispense with the salute to the flag, should such fact be established to their satisfaction.

This seemed to be reasonable and just.  I therefore assented to it, on the assurance that Spain would then declare that no insult to the flag of the United States had been intended.

I also authorized an agreement to be made that should it be shown to the satisfaction of this Government that the Virginius was improperly bearing the flag proceedings should be instituted in our courts for the punishment of the offense committed against the United States.  On her part Spain undertook to proceed against those who had offended the sovereignty of the United States, or who had violated their treaty rights.

The surrender of the vessel and the survivors to the jurisdiction of the tribunals of the United States was an admission of the principles upon which our demands had been founded.  I therefore had no hesitation in agreeing to the arrangement finally made between the two Governments—­an arrangement which was moderate and just, and calculated to cement the good relations which have so long existed between Spain and the United States.

Under this agreement the Virginius, with the American flag flying, was delivered to the Navy of the United States at Bahia Honda, in the island of Cuba, on the 16th ultimo.  She was then in an unseaworthy condition.  In the passage to New York she encountered one of the most tempestuous of our winter storms.  At the risk of their lives the officers and crew placed in charge of her attempted to keep her afloat.  Their efforts were unavailing, and she sank off Cape Fear.  The prisoners who survived the massacres were surrendered at Santiago de Cuba on the 18th ultimo, and reached the port of New York in safety.

The evidence submitted on the part of Spain to establish the fact that the Virginius at the time of her capture was improperly bearing the flag of the United States is transmitted herewith, together with the opinion of the Attorney-General thereon and a copy of the note of the Spanish minister, expressing on behalf of his Government a disclaimer of an intent of indignity to the flag of the United States.

U.S.  GRANT.

WASHINGTON, January 5, 1874.

To the Senate of the United States: 

I transmit, for the consideration of the Senate with a view to ratification, a convention between the United States of America and the Republic of Salvador, which was signed at San Salvador on the 12th of May last, stipulating for an extension of the period for exchanging the ratifications of the treaty of amity, commerce, and consular privileges concluded between the two countries on the 6th December, 1870.