(A. J. L.)
History.
Chile was the recognized name of the country from the beginning of its known history. The land was originally inhabited by tribes of Indians, who, though not mere savages, were far below the level of civilization distinguishing the races of Mexico and Peru. When the country first became known to the Spaniards in the 16th century the northern tribes were found to be more civilized and much more submissive than those of the south. The difference was no doubt due to the invasion and conquest of northern Chile in the 15th century by Yupanqui, Inca of Peru, grandfather of Atahualpa,Inca conquest.ruler of Peru at the time of its conquest by Pizarro. The dominion of the Incas in Chile was probably bounded by the Rapel river (lat. 34° 10′ S.), and, though their control of the country was slight, the Peruvian influence led to the introduction of a higher civilization, and, by weakening the power of the tribes, paved the way for the invasion of the Spaniards. Beyond the limits of the Inca conquest the Indians of Chile were distinguished by fierce independence of character and by their warlike qualities. Rude and ignorant as they were, they possessed a rough military organization; each community was led by itsulmen(chief), and in war the tribes fought together under an elected leader (toqui). The name of the Araucanians, the most powerful of the tribes, came to be applied to the whole confederation of Indians living south of the Bio-bio river.
The first Spanish invasion of Chile took place in 1535, when Diego de Almagro, the companion and rival of Pizarro in the conquest of Peru, marched into Chile in search of gold.Spanish invasions.Disappointed in his quest, and meeting with obstinate resistance from the southern tribes, he returned to Peru with his whole force in 1538. In 1540 Pizarro sent Pedro de Valdivia to make a regular conquest and settlement of Chile. Valdivia founded Santiago, the present capital of Chile, in February 1541, and proceeded to build the towns of La Serena, Conceptión, Villarica, Imperial, Valdivia and Angol, in order to secure his hold on the country. But the Indians fought desperately for their independence, and in 1553 a general rising of the tribes ended in the defeat and death of Valdivia and in the destruction of most of his settlements. This was the beginning of nearly a century of continuous warfare. As there was no gold in the country the number of settlers was small, the loose tribal organization of the natives made it impossible to inflict a vital defeat on them, and the mountainous and thickly wooded country lent itself admirably to a warfare of surprises and ambuscades. General after general and army after army were despatched from Spain and Peru; Chile was given a government independent of the viceroy of Lima; attack after attack was made on the Indians, their lands were laid waste, and the struggle was conducted with merciless ferocity: all in vain. Settlements and forts were never free from assault and were taken and retaken; if one Indian army was destroyed another took its place, if onetoquiwas killed another was chosen; when defeated, the Indians retired to their forests, marshes and hills, recruited their forces, and fell on the pursuing Spaniards. In 1612 an attempt was made by a Jesuit missionary to negotiate a peace, but not till 1640 was the desperate struggle ended by the treaty of Quillin, which left the Indians all the land south of the Bio-bio river. Up to 1800 the peace was broken by three wars, in 1655, in 1723 and in 1766, the last ended by a treaty which actually gave the Araucanians the right to have a minister at Santiago.
It was this constant warfare with the Indians and the necessity for hard continuous work, owing to the lack of precious metals in Chile, that no doubt helped to produce in the settlers the strength and hardihood of character that distinguishes the Chileans among South American races. But not unnaturally the material condition of the country was the reverse of prosperous. The expenditure far exceeded the revenue. The Indian warfare occupied nearly the whole attention of the governors and much of the time of the settlers. By the Spanish colonial system the development of manufactures was prohibited and the trade of the colony was limited not only toColonial system.Spain but to the one port of Cadiz. Till the 18th century ships were not allowed to sail round Cape Horn, so that the Chileans had to trade indirectly through Peru and the Argentine. Agriculture was the one resource of the colony, and wheat was grown for export to Peru, but the land was concentrated in the hands of a few big landowners, and the cultivation of the vine and olive was forbidden. At the end of the 17th century Santiago was a town of poor one-storeyed houses and had only 8000 inhabitants; the other towns, Valparaiso, Concepción, La Serena, were only large villages. Books were not allowed to be imported, and education was limited to such as was given here and there by priests and monks. The Indians within the limits of the Spanish colony were treated like slaves, and horribly mutilated to prevent their escape; but at the same time a gradual fusion of races was taking place, and the Chilean peasant (peon) of to-day is as much of Indian as of Spanish descent. The Araucanians, however, continued to preserve their independence; they jealously resented the introduction of Spanish influence, and the missionary efforts of the Jesuits met with little success.
During the 18th century the condition of the colony was improved in many ways. The Bourbon kings of Spain were more liberal in their colonial policy. Merchant-ships were allowed to sail direct to Chile, trade with France was sometimes permitted, and a large batch of hardy emigrants was sent outfrom the Biscay provinces of Spain. Freed from the preoccupation of the Indian wars, the governors gave more attention to the general welfare of the country: a university was started in Santiago in 1747, many towns were built about the same time, agriculture and industries were promoted and a coasting trade grew up. In 1778 Charles III. threw open all the ports of Spain to the colonies and allowed freedom of trade with France. But in general the administration of the colony was burdensome, oppressive and inefficient. The people had no voice in the government. Ruling with the help of the Royal Audience, the governor was absolute master of the country, and regulated the smallest details of life. Such time as the officials could spare from the main object of enriching themselves by extortion and corruption was given up to endless official and religious ceremonies and to petty disputes of etiquette and precedence. All the high posts and offices were filled by men sent from Spain, with the result that bitter jealousy reigned between them and the native-born colonists (criollos). Thecriollosas a rule filled the posts in the municipalities (cabildos), disposed of by sale, so that when the revolution broke out thecabildosnaturally became the centres of the movement. As in all Spanish colonies, so in Chile, the Church played a large part in the public life. Chile was divided into the two bishoprics of Santiago and Concepción, and the Church managed to accumulate most of the wealth of the country. At the same time the monks and Jesuits did useful work in teaching industrial and agricultural arts, and in giving the people a certain degree of education; but the influence of the Church was used to bolster up the traditional narrow colonial system, and the constant quarrels between the clergy and the secular powers often threw the country into confusion.
At the opening of the 19th century Chile was a colony whose resources had hardly been touched, with a population of about 500,000 persons, of Spanish and mixed Spanish and Indian blood: a people endowed with the vigour of character bred by a mountainous country and a bracing climate and by a hard struggle for existence, but ignorant through lack of education, shut out by a narrow-minded commercial system from knowledge of the outside world, and destitute of the character-training that free institutions afford.
The national independence of Chile dates from the second decade of the 19th century. The revolt of England’s North American colonies, and the events of the FrenchStruggle for independence.Revolution naturally suggested the idea of a struggle for independence to the Spanish colonists, and the deposition of Ferdinand VII. by Napoleon, and the ensuing disorganization of Spain, supplied the desired opportunity. In 1809 risings took place in Venezuela, in Ecuador, in Upper Peru and in the Argentine; the revolutionary fever spread to Chile, and on the 18th of September 1810 thecabildoof Santiago secured the resignation of the governor and vested his powers in an electedJunta(board) of seven members. This event was the beginning of the independence of Chile. But it was some time before independence was fully attained. The mass of the people were ignorant, intercourse between them was slight, and there was a strong section attached to the old régime. The party determined on independence was at first small, and compelled to conceal its aims till the ground had been prepared for open decisive action. Further, there were divisions between the patriots of Santiago and those of Concepción, and bitter jealousies between the leaders, the chief of whom were Juan Martinez de Rozas, José Miguel Carrera and Bernardo O’Higgins. Owing to the apathy of the people and the enmities existing among the leaders, the Spanish forces, sent by the viceroy of Peru to crush the revolutionary movement, succeeded after two years’ indecisive fighting in completely defeating the patriots at Rancagua in 1814. For three years the Spaniards maintained their hold on Chile, ruling the country with tyrannical harshness, but in the spring of 1817 a patriot force which had been organized at Mendoza in the Argentine by José de San Martin, an Argentine officer, and by O’Higgins, crossed the Andes and overwhelmed the royalists at the battle of Chacabuco. O’Higgins was named director-general of Chile, while San Martin, realizing that the independence of each colony depended on the Spanish being expelled from the whole of South America, set about preparing an invasion of Peru. The viceroy of Lima made one more effort to uphold the power of Spain in Chile, but the army he despatched under Mariano Osorio, the victor of Rancagua, was decisively defeated at the river Maipo on the 3rd of April 1818. By this battle the independence of Chile, formally proclaimed by O’Higgins in the previous February, was finally secured.
The next few years witnessed the expulsion of the royalists from the south of Chile, the equipment of a small fleet, placed under the command of Manuel Blanco Encalada andThe republic.Lord Cochrane (earl of Dundonald), and the invasion of Peru by San Martin with the help of the fleet, ending in the proclamation of Peruvian independence in 1821; though the Spanish power was not finally broken until Bolivar’s victory at Ayacucho in 1824. Relieved from all fear of Spanish attacks from the north, the new republic of Chile entered upon a period of internal confusion and dissension bordering upon anarchy. As soon as the necessity for establishing a stable government arose the lack of training in self-government among the Chileans became painfully obvious. O’Higgins as director-general, rightly perhaps, considered that firm orderly government was more important than the concession of liberal institutions, but his administration roused strong hostility, and in 1823 he was compelled to resign. From that date up to 1830 there were no less than ten governments, while three different constitutions were proclaimed. The nation was divided into small mutually hostile parties; there were ecclesiastical troubles owing to the hostility of the Church to the new republic; there were Indian risings in the south and royalist revolts in the island of Chiloé; the expenditure exceeded the revenue, and the employment of the old Spanish financial expedients naturally increased the general discontent. Up to 1830 the Liberal party, which favoured a free democratic régime, held the upper hand, but in that year the Conservatives, backed by a military rising led by General Joaquin Prieto, placed themselves in power after a sanguinary battle at Lircay. Prieto was elected president in 1831, and a new constitution was drafted and promulgated in 1833, which, with some modifications, remains the constitution of Chile at the present time. This constitution invested the executive with almost dictatorial powers, and the Conservatives entered upon a long term of office.
The aim of the Conservative policy was to secure above all a strong administration; power was concentrated in the hands of a small circle; public liberties were restricted and all opposition crushed by force. Inaugurated under General Prieto’s administration (1831-1841) by his able minister Diego Portales, this policy was continued by his successors General Manuel Bulnes (1841-1851) and Manuel Montt (1851-1861), each of whom like Prieto was elected to a double term of office. In spite of the discontent of the Liberals, the Conservative ascendancy secured a long period of firm stable government, which was essential to put an end to the confusion in public life and to give time for the people to awake to a fuller realization of the duties and responsibilities of national independence. The internal peace of the country was only disturbed three times, by Liberal risings in 1835, in 1851 and in 1859, all of which were crushed, but not without severe fighting. In 1836 Chile also became involved in a war with a confederation of Peru and Bolivia, which ended in the victory of Chile and the dissolution of the confederation.
While refusing to allow the people any share in, or control over, the government, the Conservative leaders devoted themselves to improving the condition of the people and of the country, and under their firm rule Chile advanced rapidly in prosperity. The government established a department for education, a training college for teachers, and numerous schools and libraries; literary magazines were started and a school of art and an academy of music founded. By the consolidation of the foreign debt, by the regular payment of interest, by the establishment of several banks, and by the negotiation of commercial treaties, the financial position of the country was improved. Internal development was promoted by the workingof the silver mines of Copiapo and the coal mines of Lota, by the building of railways and erection of telegraphs, and by the colonization of the rich Valdivia province with German settlers.
The Straits of Magellan were occupied; under an American engineer, William Wheelwright, a line of steamers was started on the coast, and, by a wise measure allowing merchandise to be landed free of duty for re-exportation, Valparaiso became a busy port and trading centre; while the demand for food-stuffs in California and Australia, following upon the rush for gold, gave a strong impetus to agriculture. A code of law was drawn up and promulgated, and the ecclesiastical system was organized under an archbishop appointed by the pope. To Montt, as minister under Bulnes and afterwards as president, must be given the main credit for the far-seeing policy which laid the foundations of the prosperity of Chile; and though the administration was in many ways harsh and narrow, firm government, rather than liberty that would have tended to anarchy, was essential for the success of the young republic.
After 1861, however, a Liberal reaction set in, aided by divisions in the Conservative party arising mainly over church questions. Montt’s successors, José Joaquin Perez (1861-1871), Federico Errázuriz (1871-1876) and Anibal Pinto (1876-1881), abandoned the repressive policy of their predecessors, invited the co-operation of the Liberals, and allowed discontent to vent itself freely in popular agitation. Some democratic changes were made in the constitution, notably a law forbidding the re-election of a president, and the gradual and peaceful transition to a Liberal policy was a proof of the progress which the nation had made in political training. Outside the movement for constitutional reform, the most important internal question was the successful Liberal attack on the privileged position and narrow views of the Church, which led to the birth of a strong ultra-montane party among the clergy. The government continued to be animated by a progressive spirit: schools, railways, telegraphs were rapidly extended; a steamship mail service to Europe was subsidized, and the stability of the government enabled it to raise new foreign loans in order to extinguish the old high interest-bearing loans and to meet the expenses of public works. In 1877 a financial crisis occurred, met by the emission of paper money, but the depression was only temporary, and the country soon rallied from the effects.
During this period there was desultory fighting with the Indians; there was a long boundary dispute with the Argentine, settled in 1880; and in 1865 Chilean sympathy with Peru in a quarrel with Spain led to a foolish war with Spain. The blockade of their ports and the bombardment of Valparaiso by a Spanish squadron impressed the Chileans with the necessity of possessing an adequate fleet to defend their long coast-line; and it was under President Errázuriz that the ships were obtained and the officers trained that did such good service in the great war with Peru. With a population of over two millions, a rapidly increasing revenue, ruled by a government that was firm and progressive and that enjoyed the confidence of all classes, Chile was well equipped for the struggle with Peru that began in 1879.
The war of 1879-82 between Chile and Peru is the subject of a separate article (seeChile-Peruvian War). By the beginning of 1881 the war had reached a stage whenClose of the war with Peru.the final struggle was close at hand. On the 13th of January of that year the Chilean forces under command of General Baquedano attacked the entrenched positions of the Peruvians at daybreak in the vicinity of Chorillos, a village some few miles from Lima, and forming the outer line of defence for the capital. After a stubborn fight the day ended in victory for the attacking forces; but the losses on both sides were great, and on the following day negotiations for peace were attempted by the representatives of the foreign powers in Lima, the object being to avoid, if possible, any further bloodshed. This attempt to end the conflict proved, however, abortive, and on the 15th of January at 2P.M.hostilities recommenced in the neighbourhood of Miraflores. After severe fighting for some four hours the Chileans again proved victorious, and drove the Peruvians from the second line of defence back upon the city of Lima. Lima was now at the mercy of the Chileans, and on the 17th of January a division of 4000 men of all arms, under the command of General Cornelio Saavedra, was sent forward to occupy the Peruvian capital and restore order within the town limits. A portion of the Chilean forces was shortly afterwards withdrawn from Peru, and the army of occupation remaining in the conquered country was in charge of Admiral Patricio Lynch, an officer who had been specially promoted for distinguished services during the war. President Anibal Pinto of Chile now set about to find means to conclude a treaty of peace with Peru, but his efforts in this direction were frustrated by the armed resistance offered in the country districts to the Chilean authorities by the remainder of the Peruvian forces under command of General Cáceres. So matters continued— the Chileans administering on the seaboard and in the principal towns, the Peruvians maintaining a guerilla warfare in the mountainous districts of the interior. In September 1881 the term of office of president Pinto expired, and he was succeeded in the post of chief executive of Chile by President Domingo Santa Maria. Ex-President Pinto died three years later in Valparaiso, leaving a memory respected and admired by all political parties in his country. The name of Pinto will always occupy a prominent place in the annals of Chilean history, not only because the war with Peru took place during his term of office, but also on account of the fact that it was largely due to the intelligent direction of all details by the president during the struggle that the Chilean arms proved so absolutely successful by land and sea.
Señor Domingo Santa Maria, who now acceded to the presidency of Chile, was a Liberal in politics, and had previously held various important posts under the government. Under the rule of President Montt he had been anPresident Santa Maria.active member of the opposition and involved in various revolutionary conspiracies; for his participation in these plots he was at one time exiled from the country, but returned and received official employment under President Perez. The principal task confronting President Santa Maria on assuming the presidency was to negotiate a treaty of peace with Peru and provide for the evacuation of the Chilean army of occupation. The presence of the Peruvian general Cáceres and his forces in the interior of Peru prevented for some two years the formation of any Peruvian national administration in Lima with which the Chilean authorities could deal. In August of 1883 the Peruvians were defeated by the forces commanded by Admiral Lynch, and a government was then organized under the leadership of General Iglesias. A provisional treaty of peace was then drawn up and signed by General Iglesias and the Chilean representative, and this was finally ratified by the Chilean and Peruvian congresses respectively in April 1884. By the terms of this treaty Peru ceded to Chile unconditionally the province of Tarapacá, and the provinces of Tacna and Arica were placed under Chilean authority for the term of ten years, the inhabitants having then to decide by a general vote whether they remained a part of Chile or elected to belong once more to Peru. In the event of the decision being favourable to Peru a sum of 10,000,000 dollars was to be paid by Peru to Chile. On the ratification of this treaty the Chilean forces were immediately withdrawn from Lima and other points of occupation in Peruvian territory. The government of Bolivia also attempted to negotiate a treaty of peace with Chile in 1884, and for this purpose sent representatives to Santiago. No satisfactory terms, however, could be arranged, and the negotiations ended in only an armistice being agreed to, by which Chile remained in occupation of the Bolivian seaboard pending a definite settlement at some future period.
The administration of President Santa Maria met with violent opposition from the Conservatives, who included the Clerical party in their ranks, and also from a certain section of the Liberals. The dislike of the Conservatives to President Santa Maria was occasioned by his introduction of the law of civil marriage, the civil registration of births and deaths, and the freeing of the cemeteries. Hitherto no marriage was legal unless celebratedaccording to the rites of the Roman Catholic religion, and all registers of births and deaths were kept by the parish priests. Civil employees were now appointed under the new laws to attend to this work. Formerly the cemeteries were entirely under the control of the Church, and, with the exception of a few places specially created for the purpose, were reserved solely for the burial of Roman Catholics. Under the new regime these cemeteries were made common to the dead of all religions. Under President Perez, in 1865, a clause in the law of constitution had been introduced permitting the exercise of all creeds of religion, and this was now put into practice, all restrictions being removed. On several occasions, notably in 1882 and 1885, President Santa Maria used his influence in the elections of senators and deputies to congress for the purpose of creating a substantial majority in his favour. He was induced to take this course in consequence of the violent opposition raised in the chambers by the liberal policy he pursued in connexion with Church matters. This intervention caused great irritation amongst the Conservatives and dissentient Liberals, and the political situation on more than one occasion became so strained as to bring the country to the verge of armed revolution. No outbreak, however, took place, and in 1886 the five years of office for which President Santa Maria had been elected came to an end, and another Liberal, Señor José Manuel Balmaceda, then succeeded to power.
The election of Balmaceda was bitterly opposed by the Conservatives and dissentient Liberals, but was finally successfully carried by the official influence exercised by President Santa Maria. On assuming office PresidentBalmaceda elected president.Balmaceda endeavoured to bring about a reconciliation of all sections of the Liberal party in congress and so form a solid majority to support the administration, and to this end he nominated as ministers representatives of the different political groups. Six months later the cabinet was reorganized, and two most bitter opponents to the recent election of President Balmaceda were accorded portfolios. Believing that he had now secured the support of the majority in congress on behalf of any measures he decided to put forward, the new president initiated a policy of heavy expenditure on public works, the building of schools, and the strengthening of the naval and military forces of the republic. Contracts were given out to the value of £6,000,000 for the construction of railways in the southern districts; some 10,000,000 dollars were expended in the erection of schools and colleges; three cruisers and two sea-going torpedo boats were added to the squadron; the construction of the naval port at Talcahuano was actively pushed forward; new armament was purchased for the infantry and artillery branches of the army, and heavy guns were acquired for the purpose of permanently and strongly fortifying the neighbourhoods of Valparaiso, Talcahuano and Iquique. In itself this policy was not unreasonable, and in many ways extremely beneficial for the country. Unfortunately corruption crept into the expenditure of the large sums necessary to carry out this programme. Contracts were given by favour and not by merit, and the progress made in the construction of the new public works was far from satisfactory. The opposition in congress to President Balmaceda began to increase rapidly towards the close of 1887, and further gained ground in 1888. In order to ensure a majority favourable to his views, the president threw the whole weight of his official influence into the elections for senators and deputies in 1888; but many of the members returned to the chambers through this official influence joined the opposition shortly after taking their seats. In 1889 congress became distinctly hostile to the administration of President Balmaceda, and the political situation became grave, and at times threatened to involve the country in civil war. According to usage and custom in Chile, a ministry does not remain in office unless supported by a majority in the chambers. Balmaceda now found himself in the impossible position of being unable to appoint any ministry that could control a majority in the senate and chamber of deputies and at the same time be in accordance with his own views of the administration of public affairs. At this juncture the president assumed that the constitution gave him the power of nominating and maintaining in office any ministers he might consider fitting persons for the purpose, and that congress had no right of interference in the matter. The chambers were now only waiting for a suitable opportunity to assert their authority. In 1890 it was stated that President Balmaceda had determined to nominate and cause to be elected as his successor at the expiration of his term of office in 1891 one of his own personal friends. This question of the election of another president brought matters to a head, and congress refused to vote supplies to carry on the government. To avoid trouble Balmaceda entered into a compromise with congress, and agreed to nominate a ministry to their liking on condition that the supplies for 1890 were voted. This cabinet, however, was of short duration, and resigned when the ministers understood the full amount of friction between the president and congress. Balmaceda then nominated a ministry not in accord with the views of congress under Señor Claudio Vicuña, whom it was no secret that Balmaceda intended to be his successor in the presidential chair, and, to prevent any expression of opinion upon his conduct in the matter, he refrained from summoning an extraordinary session of the legislature for the discussion of the estimates of revenue and expenditure for 1891. When the 1st of January 1891 arrived, the president published a decree in theDiario Oficialto the effect that the budget of 1890 would be considered the official budget for 1891. This act was illegal and beyond the attributes of the executive power. As a protest against the action of PresidentRevolution of 1891.Balmaceda, the vice-president of the senate, Señor Waldo Silva, and the president of the chamber of deputies, Señor Ramon Barros Luco, issued a proclamation appointing Captain Jorje Montt in command of the squadron, and stating that the navy could not recognize the authority of Balmaceda so long as he did not administer public affairs in accordance with the constitutional law of Chile. The majority of the members of the chambers sided with this movement, and on the 7th of January Señores Waldo Silva, Barros Luco and a number of senators and deputies embarked on board the Chilean warship “Blanco Encalada,” accompanied by the “Esmeralda” and “O’Higgins” and other vessels, sailing out of Valparaiso harbour and proceeding northwards to Tarapaca to organize armed resistance against the president (seeChilean Civil War). It was not alone this action of Balmaceda in connexion with congress that brought about the revolution. He had alienated the sympathy of the aristocratic classes of Chile by his personal vanity and ambition. The oligarchy composed of the great landowners have always been an important factor in the political life of the republic; when President Balmaceda found that he was not apersona gratato this circle he determined to endeavour to govern without their support, and to bring into the administration a set of men who had no traditions and with whom his personality would be all-powerful. The Clerical influence was also thrown against him in consequence of his radical ideas in respect of Church matters.
Immediately on the outbreak of the revolution President Balmaceda published a decree declaring Montt and his companions to be traitors, and without delay organized an army of some 40,000 men for the suppression of the insurrectionary movement. While both sides were preparing for extremities, Balmaceda administered the government under dictatorial powers with a congress of his own nomination. In June 1891 he ordered the presidential election to be held, and Señor Claudio Vicuña was duly declared chosen as president of the republic for the term commencing in September 1891. The resources of Balmaceda were running short on account of the heavy military expenses, and he determined to dispose of the reserve of silver bullion accumulated in the vaults of the Casa de Moneda in accordance with the terms of the law for the conversion of the note issue. The silver was conveyed abroad in a British man-of-war, and disposed of partly for the purchase of a fast steamer to be fitted as an auxiliary cruiser and partly in payment for other kinds of war material.
The organization of the revolutionary forces went on slowly. Much difficulty was experienced in obtaining the necessary arms and ammunition. A supply of rifles was bought in the United States, and embarked on board the “Itata,” a Chilean vessel in the service of the rebels. The United States authorities refused to allow this steamer to leave San Diego, and a guard was stationed on the ship. The “Itata,” however, slipped away and made for the Chilean coast, carrying with her the representatives of the United States. A fast cruiser was immediately sent in pursuit, but only succeeded in overhauling the rebel ship after she was at her destination. The “Itata” was then forced to return to San Diego without landing her cargo for the insurgents. The necessary arms and ammunition were arranged for in Europe; they were shipped in a British vessel, and transferred to a Chilean steamer at Fortune Bay, in Tierra del Fuego, close to the Straits of Magellan and the Falkland Islands, and thence carried to Iquique, where they were safely disembarked early in July 1891. A force of 10,000 men was now raised by thejuntaof the revolution, and preparations were rapidly pushed forward for a move to the south with the object of attacking Valparaiso and Santiago. Early in April a portion of the revolutionary squadron, comprising the “Blanco Encalada” and other ships, was sent to the southward for reconnoitring purposes and put into the port of Caldera. During the night of the 23rd of April, and whilst the “Blanco Encalada” was lying quietly at anchor, a torpedo boat called the “Almirante Lynch,” belonging to the Balmaceda faction, steamed into the bay of Caldera and discharged a torpedo at the rebel ship. The “Blanco Encalada” sank in a few minutes and 300 of her crew perished.
In the middle of August 1891 the rebel forces were embarked at Iquique (where a provisional government under Captain Jorje Montt had been set up), numbering in all about 9000 men, and sailed for the south. On the 20th of August the congressist army was disembarked at Quinteros, about 20 m. north of Valparaiso, and marched to Concon, where the Balmacedists were entrenched. A severe fight ensued, in which the troops of President Balmaceda were defeated with heavy loss. This reverse roused the worst passions of the president, and he ordered the arrest and imprisonment of all persons suspected of sympathy with the revolutionary cause. The population generally were, however, distinctly antagonistic to Balmaceda; and this feeling had become accentuated since the 17th of August 1891, on which date he had ordered the execution of a number of youths belonging to the military college at San Lorenzo on a charge of seditious practices. The shooting of these boys created a feeling of horror throughout the country, and a sensation of uncertainty as to what measures of severity might not be practised in the future if Balmaceda won the day. After the victory at Concon the insurgent army, under command of General Campos, marched in a southerly direction towards Viña del Mar, and thence to Placilla, where the final struggle in the conflict took place. Balmaceda’s generals Barbosa and Alcérrica had here massed their troops in a strong position. The battle, on the 28th of August, resulted in victory for the rebels. Both the Balmacedist generals were killed and Valparaiso was at once occupied.Defeat and suicide of Balmaceda.Three days later the victorious insurgents entered Santiago and assumed the government of the republic. After the batile of Placilla it was clear to President Balmaceda that he could no longer hope to find a sufficient strength amongst his adherents to maintain himself in power, and in view of the rapid approach of the rebel army he abandoned his official duties to seek an asylum in the Argentine legation. The president remained concealed in this retreat until the 18th of September. On the evening of that date, when the term for which he had been elected president of the republic terminated, he committed suicide by shooting himself. The excuse for this act, put forward in letters written shortly before his end, was that he did not believe the conquerors would give him an impartial trial. The death of Balmaceda finished all cause of contention in Chile, and was the closing act of the most severe and bloodiest struggle that country had ever witnessed. In the various engagements throughout the conflict more than 10,000 lives were lost, and the joint expenditure of the two governments on military preparations and the purchase of war material exceeded £10,000,000 sterling.
An unfortunate occurrence soon after the close of the revolution brought strained relations for a short period between the governments of the United States and Chile. A number of men of the U.S.S. “Baltimore” having been given liberty on shore, an argument arose between some of them and a group of Chilean sailors in a drinking den in Valparaiso. Words led to blows. The Americans were badly handled, one of their number being killed and others severely hurt. The United States government characterized the affair as an outrage, demanding an indemnity as satisfaction. The Chilean authorities demurred at this attitude, and attempted to argue the matter. James G. Elaine, then secretary of state, refused peremptorily to listen to any explanations. In the end Chile paid an indemnity of $75,000 as asked, but the affair left bad feeling in its train.
The close of the revolution against Balmaceda left the government of Chile in the hands of thejuntaunder whose guidance the military and naval operations had been organized. Admiral Jorje Montt had been the head of thisPresident Jorje Montt.revolutionary committee, and he acted as president of the provisional government when the administration of the country changed hands after the victory of the Congressional party. An election was now immediately ordered for the choice of a president of the republic and for representatives in the senate and chamber of deputies. Admiral Montt, as head of the executive power, stanchly refused to allow official influence to be brought to bear in any way in the presidential campaign. The great majority of the voters, however, required no pressure to decide who was in their opinion the man most fitted to administer the affairs of the republic. For the first time in the history of Chile a perfectly free election was held, and Admiral Montt was duly chosen by a nearly unanimous vote to be chief magistrate for the constitutional term of five years. The senate and chamber of deputies were formally constituted in due course, and the government of the republic resumed normal conditions of existence. The new president showed admirable tact in dealing with the difficult problem he was called upon to face. Party feeling still ran high between the partisans of the two sides of the recent conflict. Admiral Montt took the view that it was politic and just to let bygones be bygones, and he acted conscientiously by this principle in all administrative measures in connexion with the supporters of the late President Balmaceda. Early in 1892 an amnesty was granted to the officers of the Balmaceda régime, and they were freely permitted to return to Chile without any attempt being made to molest them. The first political act of national importance of the new government was the grant of control to the municipalities, which hitherto had possessed little power to direct local affairs, and were not even permitted to dispose of the municipal revenues to any important amount without first obtaining the consent of the central government. Almost absolute power was now given these corporations to manage their own concerns, and the organization of the police was placed in their hands; at a later period, however, it was found necessary to modify this latter condition.
President Montt next turned his attention towards the question of how best to repair the damage occasioned to the country by eight months of civil warfare. The plan of public works authorized in 1887 was reconsidered, and the construction of portions of the various undertakings recommenced. The army and navy were reorganized. Additional instructors were brought from Germany, and all arms of the military service were placed on a thoroughly efficient footing in matters of drill and discipline. Several new and powerful cruisers were added to the navy, and the internal economy of this branch of the national defence was thoroughly inspected and many defects were remedied. President Montt then took in hand the question of a reform of the currency, the abolition of inconvertible paper money, and the re-establishment of a gold basis as the monetary standard of the republic. This reform of the currency became the keynote of the president’s policy during the remainder ofhis term of office. Great opposition was raised by the representatives of the debtor class in congress to the suppression of the inconvertible paper money, but in the end President Montt carried the day, and on the 11th of February 1895 a measure finally became law establishing a gold currency as the only legal tender in Chile. In July 1896 the Conversion Act was put in force, a dollar of 18d. being the monetary unit adopted. In 1895 relations with the neighbouring republic of Argentina began to become somewhat strained in regard to the interpretation of the treaty concerning the boundary between the two countries. The treaties of 1881, 1893 and 1895 left doubts in the minds of both Chileans and Argentines as to the position of the frontier line. On the 17th of April 1896 another protocol was drawn up, by which the contending parties agreed to submit any differences to the arbitration of Great Britain, at the instance of one or both governments. President Montt had now fulfilled his term of office, and on the 18th of September 1896 he handed over the presidential power to his successor, Señor Federico Errázuriz, who had been duly elected in the month of June previously.
The election for the position of president of the republic was closely contested in 1896 between Señor Errázuriz and Señor Reyes, and ended in the triumph of the former candidate by the narrow majority of one vote. The fatherPresident Errázuriz.of the new president had been chief magistrate of Chile from 1871 to 1876, and his administration had been one of the best the country had ever enjoyed; his son had therefore traditions to uphold in the post he was now called upon to fill. At the beginning of 1897 the public attention was absorbed by foreign political questions. The problems to be solved were the frontier difficulty with Argentina, the question of the possession of Tacna and Arica with Peru, and the necessity of fulfilling the obligation contracted with Bolivia to give that country a seaport on the Pacific coast. The treaty made in 1896 with the Argentine government, referring to the arbitration of disputed points concerning the boundary, became practically for the moment a dead letter, and both Argentines and Chileans began to talk openly of an appeal to arms to settle the matter once for all. The governments of both countries began to purchase large supplies of war material, and generally to make preparations for a possible conflict. In these circumstances no final settlement with Peru and Bolivia was possible, the authorities of those republics holding back to see the issue of the Chile-Argentine dispute, and Chile being in no position at the time to insist on any terms being arranged. So matters drifted until the beginning of 1898. In July of that year the crisis reached an acute stage. Both Chile and Argentina put forward certain pretensions to territory in the Atacama district to the north, and also to a section of Patagonia in the south. Neither side would give way, nor was any disposition exhibited to refer the matter to arbitration under the protocol of 1896. The cry of an acute financial crisis emanating from the fear of war with Argentina was now raised in Chile. The president was advised that the only way of averting the financial ruin of the banking institutions of the republic was to suspend the conversion law and lend from the national treasury inconvertible notes to the banks. Señor Errázuriz weakly gave way, and a decree was promulgated placing theCrisis with Argentina.currency once more on an inconvertible paper money basis until 1902. In August of 1898 the Chilean government determined to insist upon the terms of the protocol of 1896 being acted upon, and intimated to Argentina that they demanded the fulfilment of the clause relating to arbitration on disputed points. This was practically an ultimatum, and a refusal on the part of the Argentine government to comply with the terms of the 1896 agreement meant a declaration of war by Chile. For a few days the issue hung in the balance, and then the Argentine government accepted the provisions made in 1896 for arbitration. The dispute concerning the Atacama district was submitted to an arbitration tribunal, consisting of the representative of the United States in Argentina, assisted by one Argentine and one Chilean commissioner. This tribunal, after due investigation, gave their decision in April 1899, and the verdict was accepted unreservedly by both governments. The dispute regarding the Patagonian territory was submitted to the arbitration of Great Britain, and a commission—consisting of Lord Macnaghten, Sir John Ardagh and Sir T.H. Holdich—was appointed in 1899 to hear the case.
The Argentine difficulty was ended, but Chile still had to find a settlement with Peru and Bolivia. The treaty made with the former country in 1893 was not ratified, as it was thought to concede too much to Peru, and the subsequentad referendumtreaty was rejected on account of Peru claiming that only Peruvians, and not all residents, should have the right to vote in the plebiscite to be taken by the terms of the treaty of 1883 for the possession of Tacna and Arica. By the terms of the armistice of 1883 between Chile and Bolivia, a three years’ notice had to be given by either government wishing to denounce that agreement. By the protocol of 1895 Chile agreed to give to Bolivia the port of Arica, or some other suitable position on the seaboard. On these lines a settlement was proposed. Vitor, a landing-place a little to the south of Arica, was offered by the Chilean government to Bolivia, but refused as not complying with the conditions stated in the protocol of 1895; the Bolivians furthermore preferred to wait and see if Arica was finally ceded by Peru to Chile, and if so to claim the fulfilment of the terms of the protocol.
After the accession to office of President Errázuriz there was no stability of any ministry. Political parties in congress were so evenly balanced and so subdivided into groups that a vote against the ministry was easy to obtain, and the resignation of the cabinet immediately followed in accordance with the so-called parliamentary system in vogue in Chile. The president of the republic has no power to dissolve the chambers, to endeavour to remedy the evil by one or another political party obtaining a substantial working majority, but must wait to see the results of the triennial elections. As a consequence of these conditions Conservative, Liberal and coalition ministries held office at short intervals. These unsettled political circumstances checked any continuity of policy, and tended to block the passage of all useful legislation to help forward the economic development of the country and inhabitants; on the other hand, the financial situation was better by the end of 1899 than in the previous year, since all proposals for a fresh paper issue had been vetoed; and the elections for congress and municipal office at the opening of 1900 returned a majority favourable to a stable currency policy.
In September 1900 a fresh outburst of hostile feeling against Chile was created in Argentina by a note addressed by the Chilean government to Bolivia, intimating that Chile was no longer inclined to hand over the port of Arica or any other port on the Pacific, but considered the time ripe for a final settlement of the questions connected with the Chilean occupation of Bolivian territory, which had now been outstanding for sixteen years. The foreign policy of Chile, as indicated by this note, was considered by Argentina to be grasping and unconciliatory, and there were rumours of an anti-Chilean South American federation. Chile disclaimed any aggressive intentions; but in December the Bolivian congress declined to relinquish their claim to a port, and refused to conclude a definite treaty of peace. The year closed with a frontier incident between Chile and Argentina in the disputed territory of Ultima Esperanza, where some Argentine colonists were ejected by Chilean police; but both governments signed protocols agreeing not to take aggressive action in consequence.
At the opening of 1901 the country was chiefly interested in the forthcoming presidential election, for which the candidates were Don Pedro Montt (Conservative and Clerical) and Señor German Riesco (Liberal). The relationsPresident Riesco.between President Errázuriz and congress became rather strained, owing to the former’s inclination to retain in office a ministry on which congress had passed a vote of censure; but Errázuriz had been in ill-health for more than a year, and on the 1st of May he resigned, and died in July. At the ensuing election Riesco was elected president. The attitude of Chiletowards the Pan-American Congress at Mexico became a matter of interest in the autumn, particularly in connexion with the proposal for compulsory arbitration between all American governments. The Chilean government made it quite clear that they would withdraw from the congress if this proposal was meant to be retroactive; and their unyielding attitude testified to the apprehensions felt by Chile concerning United States interference. In October the Chilean government announced that the contemplated conversion scheme, for which gold had been accumulated, would be postponed for two years (till October 1903), the gold being held as a reserve fund pending the result of the arbitration over the Argentine frontier. This was generally considered to be a reasonable and statesmanlike course. Unfortunately, a recrudescence of the excitement over the boundary dispute was occasioned by the irritation created in Argentina by the fact that, pending a decision, Chile was constructing roads in the disputed territory. During December 1901 relations were exceedingly strained, and troops were called out on both sides. But at the end of the month it was agreed to leave the question to the British arbitrators, and the latter decided to send one of their number, Sir T.H. Holdich, to examine the territory.
The survey occupied some eight months, and it was not until the autumn that Sir T.H. Holdich returned to England to make his report. The difficulty of ascertaining the true line watershed had been very great, but the resultArgentine boundary award.was eminently successful. The award of King Edward was signed on the 20th of November 1902, and both parties to the litigation were satisfied. In order that future disputes might be amicably settled, a treaty was signed by which it was agreed that any question that might arise should be submitted to the arbitration of Great Britain or in default of that power to the Swiss Confederation. The removal of this source of irritation and the restoration of friendly relations between the two republics was a great relief to the finance of Chile. Had it not been for the political instability of the country, the effects of the diminution of expenditure on military and naval preparations would have effected a rapid improvement in its financial position. The constant change of ministry (there being no stable majority in the congress) prevented during 1903 any settled policy, or that confidence in the government which is the basis of commercial prosperity. In 1904, however, both trade and revenue showed signs of improvement, and the sale of the warships “Esmeralda” and “Chambuco” for £1,000,000 furnished a surplus, which was devoted to the improvement of the port of Valparaiso. This was the beginning of a period of steady industrial growth and development. The settlement of the long outstanding dispute with Bolivia in a treaty of peace signed on the 17th of October 1905 was very advantageous to both countries. By this treaty Bolivia ceded all claims to a seaport and strip of the coast, on condition that Chile constructed at her own charges a railway to Lapaz from the port of Arica, giving at the same time to Bolivia free transit across Chilean territory to the sea. A cash indemnity of £300,000 was also paid, and certain stipulations were made with regard to the construction of other railways giving access from Chile to the Bolivian interior.
The prosperity of Chile was to suffer a rude shock. On the 17th of August 1906 a terrible earthquake visited Valparaiso and the surrounding district. The town of Valparaiso was almost entirely destroyed, while Santiago andValparaiso earthquake.other towns were severely shaken and suffered much damage. It was estimated that about 3000 persons were killed, a still larger number injured, and at least 100,000 rendered homeless. The loss of property was enormous. The fire which broke out after the earthquake shock had subsided added to the horror of the catastrophe. Measures were, however, promptly taken for succouring the people, who had been driven from their homes, and the task of restoration was vigorously taken in hand. Before the end of the year the rebuilding of the city was rapidly progressing.
In 1906 Señor Pedro Montt was elected president and entered upon his office on the 17th of September. The personality of the president, however, had become of much less importance in modern Chile than in earlier days. Up to 1870 the government was in the hands of a small oligarchy of SantiagoPresident Pedro Montt.families, but the president enjoyed large powers of initiative. Nowadays the congress has virtually absorbed the executive power, with the result that the cabinet is often changed many times in one year. This prevents indeed any continuity of policy, for the majority in congress is perpetually fluctuating, and ministerial crises rapidly follow one another. Chile, however, except in the Balmacedist civil war, is happily distinguished by its freedom from revolution and serious political unrest. Its history in this respect is in marked contrast to that of the neighbouring South American states. The completion of the Trans-Andean railway between Valparaiso and Buenos Aires was bound to be of immense commercial and industrial value; and eventually the making of a longitudinal railway route uniting the nitrate province of the north with Santiago, and Santiago with Puerto Montt in the distant south, opened up further important prospects. Such a line of through communication, binding together the different provinces forming the long narrow strip of territory stretching along more than 2000 m. of the Pacific littoral, could only be looked forward to, both politically and economically, as an inestimable benefit to the country.