In South America, Paraguayan naval units seize a Brazilian steamship and touch off a crisis that will lead to war

Brazil was engaged in a land campaign in Uruguay supporting the Colorado Party against the government in Montivideo. Paraguay had warned Brazil against such action and, encouraged by the poor performance of Brazil's troops in the field,  became increasingly belligerent. On this day, in the River Paraguay, the Paraguayan navy seized the Brazilian vessel Marquês de Olinda, ostensibly to support the Uruguayan government. All diplomatic relations were broken off and a month later, Paraguayan army units invaded Brazil's western provinces. (By John Osborne)
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In Uruguay, the civil war comes to an end as negotiations replace the government with the rebel Colorado Party

The ongoing revolt in Uruguay of the insurgent Colorado Party, with open military support from Brazil and material support from Argentina, against the Blanco  goverment was finally ended by negotiation.  With Italian diplomats as intermediaries, the Colorado leader, General Venancio Flores, became interim president with elections to be scheduled.  Full amnesty for both sides was included in the agreement.  Peace in the region was not lasting, however; the disastrous Paraguayan War soon fully underway. (By John Osborne)
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In South America, units of Brazil's army invade the Uruguayan province of Cerro Largo

Negotiations to assure protection of Brazilian citizens and interests during the ongoing revolt in Uruguay against the Blanco Party government in Montivideo had collapsed in August and naval clashes had occurred almost immediately.  In concert with the rebel Colorado faction, Brazilian troops crossed its southern border and engaged Uruguayan government forces in Cero Largo Province.  Within four days, the invaders had captured Melo, the provincial capital.  (By John Osborne)
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In South America, Brazil delivers Uruguay an ultimatum over the security of its southern border

A civil war in Uruguay had grown out of a 1863 revolt, supported from Argentina, against the ruling Blanco Party.  Brazil, the dominant power in the region, was wary of unrest on its southern border and became increasingly belligerent to the Blanco faction. Negotiations to assure protection of Brazilian citizens and interests in the revolt broke down and Brazil delivered an ultimatum that the Uruguayan leader, Atanasio Aguirre rejected. Within a week, Brazil had initiated what amounted to a state of war with Montevideo.  (By John Osborne)
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At Sand Creek in Colorado, territorial volunteers attack encamped Cheyenne and Arapaho, killing hundreds

Some of the Cheyenne and Arapaho tribes had been carrying out sporadic guerilla warfare in the Colorado Territory but had decided to make peace. A large group under Black Kettle had gathered for that purpose at Sand Creek.  There they were unexpectedly attacked by Colorado militia under Colonel John Chivington.  Outnumbered, they suffered a seven hour massacre during which hundreds of Native Americans were ruthlessly killed, mostly women and children. The militia lost eight dead.  (By John Osborne)
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In England, Charles Dodgson gives Alice Liddell a manuscript entitled "Alice's Adventures Underground."

The English mathematician and pioneer photographer Charles Dodgson presented a unique early Christmas gift to Alice Liddell, the twelve year old child of a family friend. The beautifully hand-written and illustrated story was called Alice's Adventures Underground.  Dodgson, using the pen-name Lewis Carroll, later published this story of a seven year old girl encountering fantastical creatures down a rabbit-hole as Alice in Wonderland. The first printing, in 1866, sold out in hours and "Alice" has been famous since. (By John Osborne)
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In Queensland, Australia, fire destroys much of the colony's main town of Brisbane

In the early evening, fire was discovered in the Queen Street store of Stewart and Hemmant in the central area of Brisbane, the main town of the Queensland Colony. Despite largely disorganized but energetic efforts to fight the blaze, it spread quickly and in the next three hours destroyed much of the business district, including banks, hotels, and more than fifty large houses. No fatalities were reported but four peole fighting the fire were admitted to hospital with burns.  (By John Osborne) 
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In New York City, Confederate agents make an apparent but failed attempt to fire much of Manhattan

Late in the evening and continuing into the next morning, arsonists set fires in several widespread areas of New York City.  Many of the fires were discovered quickly in up to thirteen large hotels, including the Belmont, the Astor, and the Metropolitan, and several other buildings, including Barnum's Museum.  Hay barges along the river front were also set afire. The press noted that the execution of the plan was poor, that no serious damage or casualties were incurred and all fires quickly contained. (By John Osborne)
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In Paris, Jules Verne publishes his third novel, relating a scientific expedition to the center of the Earth.

Probably completed between January and August 1864, Jules Verne's fictional account of a small group of scientists descending to the center of the Earth through a volcano was published in Paris on this date. Journey to the Center of the Earth was Verne's third novel and also the third for his publisher Pierre-Jules Hetzel, who Verne made very rich.  (By John Osborne) 
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