Volume II Part 4 (1/2)

The Porfirio Diaz of Peru was at hand, a little, quiet, rough, and unpretentious soldier, who for twenty years had been modestly doing his duty, observing events and slowly maturing in character. All Peruvians knew him as one of the heroes of Ayacucho, but none appreciated his latent possibilities, and he had been pa.s.sed by while his more showy companions of that historic day had pushed themselves to the front.

Ramon Castilla had been a colonel on Gamarra's staff at Ayacucho, and was rewarded by being appointed prefect of his native province--Tarapaca, the most southern part of Peru. About 1830 he began to take part in the civil wars, but he never started a revolution on his own account, and always seems to have chosen the side that best promised stability and respect for the Const.i.tution. To Orbegoso. Castilla was long faithful but abandoned him when he made alliance with the Bolivians. He went into exile when Santa Cruz was victorious, and returned with Gamarra and the Chileans. At the battle of Yungay he commanded the Peruvian contingent of the allied cavalry, and when Gamarra became president gave him his adhesion; but was taken prisoner at the fatal battle of Yngavi, where his chief was killed. Returning from captivity he found Peru torn to pieces by the armed rivalry of contending generals, and Menendez, the legal president, a fugitive.

Unhesitatingly he threw himself into the conflict against those whose claims rested on their own p.r.o.nunciamentos. Landing at Arica with only five men, his cool audacity saved his life in the first attack; his little band increased; Vivanco's partisans were confounded by the rapidity of his movements; their opponents hastened to join him.

Castilla obtained control of Arequipa and Cuzco, and finally, in July, 1844, completely overthrew Vivanco's army, putting an end to the civil war. The first use he made of his victory was to declare a general amnesty; the second to restore Menendez to the position of acting president. The latter called a convention, and ten months later Castilla was elected president of Peru without opposition.

The country realised at once that it was in the hands of a master--a man strong enough to be generous, but with whom it was not safe to trifle.

Almost instantaneously commerce felt the impulse which a.s.sured peace always gives. The turbulent military leaders found their occupation slipping away, while the orderly elements of the community grew in power. At heart the vast majority of the people were law-abiding, and the cla.s.s which promoted revolutions was numerically an insignificant element of the population. But it was not alone Castilla's personal force of character, his shrewdness as a politician, his prestige as a general, his popularity so n.o.bly won by generosity and moderation, which made his position secure. At the moment he a.s.sumed supreme power bountiful Providence placed in his hands riches untold. Holding the strings of a purse into which poured the millions from the guano and nitrate deposits, he could reward his friends, keep his troops contented by regular pay, relieve agriculture of taxation, place the disordered finances on a sound footing, and promote general prosperity by works of public utility. Europe suddenly realised the value of the bird manure found on the desert islands of the Peruvian coast, and soon hundreds of s.h.i.+ps were coming annually to load the precious fertiliser.

Instead of squandering this fairy gift on the enrichment of his creatures, or on the creation of a vast, useless, and wasteful swarm of office-holders,--the hardest of all temptations for a South American politician to resist,--Castilla paid interest on the foreign debt which Peru had incurred during the war of independence, and refunded it, with the accrued interest, that already amounted to more than the princ.i.p.al.

The internal debt was also consolidated, care being taken to admit no fict.i.tious claims; telegraphs and railways were constructed; steam vessels added to the navy; and all legitimate branches of the administration adequately provided for. But the moment Castilla's strong hand was removed, extravagance and corruption grew to alarming proportions. Under General Echenique, his successor, public offices and pensions were multiplied; concessions were granted not to promote honestly new industries, but to favourites to be sold for what they would bring; and finally a measure was rushed through congress to extend the time fixed by Castilla for presenting claims to be funded in the internal debt. It was openly charged that the ministerial ring had arranged to put themselves on the roll of national creditors. Public opinion was scandalised, and the discontent and jealousy soon showed itself in open revolt. The first insurrection was suppressed, but in the beginning of 1854 Castilla decided to put himself at the head of the movement against Echenique. Though the government regulars were better armed and provided than the militia which rallied around Castilla, the latter advanced from one position to another and finally overthrew the president in the decisive battle of La Palma. Echenique fled the country and Castilla a.s.sumed the reins of power once more, not to lay them down until 1862, when he voluntarily retired to private life. His second administration was as orderly as his first except for a local insurrection at Arequipa. He was not, however, so successful in restraining the predatory disposition of the Peruvian politicians and was unable to restore the administration to its old economical basis.

The eighteen years of almost uninterrupted peace which elapsed between the beginning of Castilla's first administration and his retirement changed the face of Peru. A generation had grown up to whom the early years of independence were only a tradition. War, age, banishment, discouragement had thinned the ranks of the Ayacucho veterans, and the days were gone when one of them had merely to issue a p.r.o.nunciamento to be forthwith hailed as president, dictator, supreme chief, protector, regenerator, by a turbulent soldiery and a fickle, ambitious Creole aristocracy. Peru's subsequent troubles have been financial, not military.

In 1860 the Const.i.tution which still governs the country was adopted.

Framed under Castilla's influence it retains the centralised system of provincial government through prefects appointed from Lima, and gives the executive preponderant powers, although it is liberal and humane in its guaranties to the citizen. Slavery and Indian tribute, which continued to exist until 1855, are forbidden; forced recruiting, the scourge of old revolutionary days, is a crime; all Peruvians who can read and write, who own property or pay taxes, are ent.i.tled to vote.

Castilla was succeeded by his old friend and companion in arms, General San Roman, a straightforward soldier who resembled his chief in his unquestioning obedience to lawful authority, but whose unfortunate death six months after his inauguration prevented him from demonstrating whether he possessed the same statesmanlike qualities. Vice-President Pezet peacefully took his place. Castilla had encouraged foreign immigration into the coast valleys, so admirably adapted to cotton and sugar, but where labour was scarce. Chinese coolies had come in large numbers, and the flattering offers had also attracted some Europeans.

Among the latter were seventy Basque families, who shortly claimed that they were badly treated. Making a protest against a breach of contract committed by the proprietor of the estate on which they were working, they were attacked and some of them killed. The criminals escaped punishment, and the Spanish government made an international question of the affair, finally demanding an apology and three millions of dollars as indemnity. This being refused Spain broke off diplomatic relations and sent a powerful fleet, which seized the Chincha guano islands. Too weak alone to bid defiance to the Spanish s.h.i.+ps, Pezet temporised, meanwhile asking Chile for help, and hoping for the early arrival of war-s.h.i.+ps ordered in Europe. But the Spaniards pressed him so hard that he thought himself forced to yield to their demands. He concluded an agreement derogatory to the national honour, and a terrific outburst of public indignation followed. Prado, prefect of Arequipa, made preparations to march on Lima and depose the pusillanimous president; the Chileans, who had meantime determined to join in resistance to Spanish aggression, supported the insurrection; the terrible old Castilla went himself to the presidential mansion and gave Pezet a sound rating. The latter gave in and offered his resignation. Prado became supreme chief, issued a declaration of war against Spain, and signed a treaty of alliance with Chile. During the absence of the Spanish fleet the batteries at Callao were heavily reinforced, and an immense force of volunteers flocked to man the guns. When the Spanish s.h.i.+ps appeared and, gallantly running into range, opened fire on the 2d of May, 1866, they were met by a determined resistance. Though the Peruvians suffered most severely--two thousand being killed and wounded--their opponents were unable to effect a landing or obtain the slightest concession, and their s.h.i.+ps were so badly damaged that they abandoned further hostilities.

Prado now found that the unconst.i.tutional character of his position had only temporarily been ignored when he attempted to hold the power against General Canseco, second vice-president, who was Pezet's lawful successor. Castilla, now over seventy years old, landed in his native province, determined to unseat him. But the enfeebled frame of the aged warrior was unable to withstand fatigues and he died of exposure on the march. Canseco, however, roused Arequipa. Prado failed to take the place by a.s.sault, and gave up further opposition. Meanwhile Colonel Balta had headed a formidable insurrection in the north, and though Canseco was allowed to fill out his legal term, Balta's friends controlled the electoral college, and he was inaugurated president in August, 1868.

With his accession Peru entered definitely upon a new era. The race for fortune absorbed the energies of the ruling cla.s.s; cane and cotton planting, nitrate mining, railroad building under foreign direction, opened up vistas of profit without labour; social and civil intrigue replaced fighting and p.r.o.nunciamentos. Castilla's liberal refunding of the old debt, the scrupulous regularity with which international obligations had been met, and the immense and increasing revenue from nitrate and guano, gave Peru credit in the money markets of Europe.

Balta and his advisers were full of schemes for the material progress of the country and their own enrichment. A great railway system was projected and more than two thousand miles constructed at a cost of near forty million pounds. Enormous sums were spent on port works; expensive moles and piers built in the wave-lashed roadsteads which are Peru's only harbours; for the first time serious efforts were made to explore and develop the forested plain east of the Andes; the city of Iquitos was built at the head of deep-water navigation on the Amazon; office-holders multiplied; and new parks and public buildings embellished the cities. English capitalists eagerly took the bonds which the Peruvian government recklessly issued, and the foreign debt increased from five millions sterling to forty-nine millions before the end of Balta's term--a sum upon which two-thirds of the gross revenue would hardly suffice to pay interest. Such a debt was truly stupendous for a country most of whose population of scant two millions and a half was poor, non-commercial, non-industrial, and without other resources than a rude agriculture. Leaving out the proceeds of the guano monopoly and the nitrate royalties, the total revenues could not pay the interest.

[Ill.u.s.tration: STATUE OF BOLIVAR--LIMA, PERU]

Don Manuel Pardo, Peru's first civilian president, had already been const.i.tutionally selected as Balta's successor, and the latter was within a few days of the end of his term, when a terrible catastrophe happened. Among the poor relations whom the luckless president had preferred to positions in the army were four brothers named Gutierrez--the sons of a muleteer near Arequipa. Suddenly one brother appeared at the head of his battalion and took possession of the great square in the centre of the capital, while another forced his way into the president's study, revolver in hand, arrested the chief of state, and locked him up. Warned in time the president-elect escaped on board a man-of-war, and the eldest Gutierrez was proclaimed supreme chief. The people of Lima soon recovered from their stupefaction and a scene of terrific street-fighting followed. One of the conspirators was shot by the mob as he went to the railway station on his way to Callao. His brothers retaliated by murdering the captive president, but they soon fell before the rifles of the populace. Their bodies were hung up in the cathedral by the infuriated people, while the president-elect returned and a.s.sumed his functions.

Pardo's four years were one continual struggle against impending bankruptcy. Though he brought some order into public accounts, it was only by all sorts of expedients that he managed to keep up interest payments. He easily suppressed an insurrection led by Pierola in 1874; his intellectual and moral force united about him the educated and property-holding cla.s.ses in a party which survives to this day; and he left the reputation of having been the best president who ever ruled Peru. However, no efforts could avail more than merely to put off the evil day of reckoning. The rapid exhaustion of the guano deposits precipitated the disaster. Payment of interest was suspended in 1876 and the same year Pardo turned over the government to General Prado with the currency at fifty-per-cent. discount and Peruvian bonds selling in London at twelve.

CHAPTER VII

THE CHILEAN WAR AND LATTER-DAY PERU

The nitrate region extends along the narrow desert coast of the Pacific for three hundred and fifty miles. Peru owned the northern one hundred and fifty, and prior to 1866 Bolivia claimed the remainder. After the discovery of the precious mineral the industrious and energetic Chileans crowded up the coast, while the Bolivians were shut in behind their high Andes. Chile insisted that her true boundary lay as far north as the 23d degree, and took vigorous measures to safeguard the interests of the Chilean nitrate companies. In 1866 Bolivia reluctantly made a treaty by which the 24th degree was agreed upon as the formal boundary, although the Chilean miners were allowed to continue their operations in the productive regions north of that line and their taxes were not to be increased without their government's consent. This treaty gave rise to constant disputes, and as the nitrate, silver, and copper business of the neutral zone became more profitable, the Bolivian government pressed harder for a larger revenue. The Peruvian government had planned to secure a control of the output by the state purchase and operation of nitrate properties, and such a trust would prove ineffective unless the Bolivian government had a free hand with the Chilean companies. In 1872 Peru and Bolivia made a secret treaty of alliance. Its provisions soon became public, and Chile not unreasonably believed it to be aimed especially at her miners' operating on Bolivian soil. She promptly began purchasing iron-clads. It was a favourite saying of old Marshal Castilla that when Chile bought a battle-s.h.i.+p Peru should buy two, but the Lima government was too poor to follow the good advice, and the fatal year of 1879 found her naval force inferior to that of her rival.

At this juncture the Bolivian congress voted not to ratify a treaty negotiated with Chile four years before, and pa.s.sed a law imposing heavy taxes on the nitrate business. The Chilean companies protested and resisted; their government backed them up, and sent a fleet to protect their interests. Enraged at the seizure of her ports, Bolivia declared war in March, 1879. Peru could not be expected to remain quiet. Not only was she bound by the solemn agreement of the treaty of alliance, but she had an imperative selfish interest in preventing the disputed nitrate territory from falling into Chile's hands. She began to gather an army on the southern frontier, but she was illy prepared for war and Chile knew it. Her offers of arbitration were promptly rejected; the Chilean government had determined to strike both allies at the same time, and presented an ultimatum, demanding that Peru abrogate the secret treaty, cease warlike preparations, and remain neutral in the war with Bolivia.

Failing immediate and categorical compliance war was declared in April.

What had proven true in the time of Pizarro, San Martin, and Santa Cruz, was still true--the successful invasion or defence of Peru depended on the control of the Pacific. Whichever power should obtain a naval preponderance would surely get the nitrate territory--a rainless, cropless region where an army must be sustained by supplies brought by sea--and then could attack the other at its capital. Chile had two new iron-clads, the _Cochrane_ and the _Blanco_, besides two good cruisers and several gunboats. The two Peruvian iron-clads, the _Huascar_ and the _Independencia_, were older, though their speed was superior. The Chileans opened the war on the ocean by blockading the Peruvian ports in the extreme south, but Miguel Grau, the able seaman and intrepid fighter who commanded the Peruvian fleet, at once attacked the Chilean cruisers which were lying off Iquique. The _Huascar_ rammed and sank the _Esmeralda_, but while his other iron-clad was pursuing the _Covadonga_, she ran upon the rocks and was lost. This was in reality a deathblow to Peru, but the gallant Grau devotedly determined to see what his single s.h.i.+p, rapidly manoeuvred, could do to make unsafe the embarkation of a Chilean army. For four months he terrorised the coast from Antof.a.gasta to Valparaiso. Chile could not take a step until she had disposed of Grau and his dreaded _Huascar_. The blockade of Iquique was abandoned as useless; the iron-clads ordered back to Valparaiso to be cleaned and repaired so that they might match the _Huascar_ in speed; new officers were put in command; and on October the first the Chilean fleet set sail from Valparaiso on a systematic chase for the Peruvian iron-clad. On reaching Antof.a.gasta it was divided into two squadrons, the _Cochrane_ leading one and the _Blanco_ the other, and they immediately began patrolling the coast.

The _Huascar_, accompanied by a consort, the _Union_, was cruising in the neighbourhood, and at daylight on the 8th of October the first Chilean division sighted her. Grau fled, and was gradually drawing away from his pursuers when, to his horror, three columns of smoke appeared on the horizon directly forward. He was caught between the two Chilean squadrons. The _Union_ had speed enough to slip by the enemy, but the _Huascar_ was too slow. Grau's only chance was to close with the _Cochrane_ before the _Blanco_ could come up astern, and he went straight for the former. At half past nine the _Huascar_ fired the first shot, the distance being about three thousand yards. It fell short and only the fourth shot took effect. The _Cochrane_ then replied, and though the practice on both sides was wild, the two s.h.i.+ps soon came so close that the machine guns were brought into effective play. A shot disabled the _Huascar's_ turret, and in desperation Grau tried repeatedly to ram, but was foiled by the quick turns which the _Cochrane's_ twin screws enabled her to make. Just half an hour after the action began a sh.e.l.l struck his conning-tower, blowing the heroic Peruvian into atoms. A few minutes later the _Blanco_ came up and added her missiles to the storm of shots which the _Cochrane_ and the smaller consorts were pouring upon the doomed _Huascar_. Nevertheless no one thought of striking. Hardly had Grau been blown to pieces than the executive officer had his head taken clean off by a sh.e.l.l from the _Blanco_, and the officer next in seniority was severely wounded. A few moments later the lieutenant who succeeded to the command was killed, and his successor, in turn, was wounded before the end of the action.

When the s.h.i.+p finally struck, an hour and a half after the first shot was fired, one of the juniors was in command, and sixty-four of the complement of one hundred and ninety-three officers and men lay killed or wounded on the deck.