On November 27, Fish reached a diplomatic resolution in which Spain's president, Emilio Castelar y Ripoll, expressed his regret, surrendered the Virginius and the surviving captives. A year later, Spain paid a cash indemnity of $80,000 to the families of the executed Americans.[436][437]

Free trade with Hawaii
King Kalākaua of Hawaii meets President Grant at the White House on his state visit, 1874.Published January 2, 1875
In the face of strong opposition from Democrats, Grant and Fish secured a free trade treaty in 1875 with the Kingdom of Hawaii, incorporating the Pacific islands' sugar industry into the United States' economic sphere.[438] The Southern Democrats, wanting to protect American rice and sugar producers, tried to squash a bill to implement the Hawaiian treaty. The Democrats, in opposition, because the treaty was believed to be an island annexation attempt, referred to the Hawaiians as an "inferior" non-white race. Despite opposition, the implementation bill passed Congress.[438]

Mexican border raids
At the close of Grant's second term in office, Fish had to contend Indian raids on the Mexican border, due to a lack of law enforcement over the U.S. – Mexican border. 