It is due to the Viceroy Abascal to say, that his prudence preserved the capital to the crown of Spain; and although no Viceroy of Peru had ever more accidental duties to attend to, or more critical affairs to manage, yet Lima is indebted to him for the foundation of the college of San Fernando, instituted for medicine and surgery; the pantheon or general cemetery, and the absolute prohibition of burying within the walls of the city; the rebuilding of the college del Principe, for the study of Latin; the thorough repair of the city walls; as well as several excellent police establishments; and notwithstanding the public feeling at this time in Lima, he was accompanied to Callao by all the respectable inhabitants, and his departure was a day of mourning in the city: such are generally the sentiments, even towards an enemy, when moderation has presided at his councils, and justice has guided his actions.
Pesuela, the hero of Huiluma and Vilcapugio, on taking cognizance of the treasury, discovered what was too well known to his predecessor—the low state of the funds: many plans were proposed for replenishing them; donations were at first solicited, and afterwards contributions were exacted; but these were incompetent to support the expenses of the government and the army, which, during the first years of warfare, levied large sums of money, as well on friends as on enemies, and derived some support from the different royal treasuries at Arequipa, at Cusco, Charcas, and other cities in Upper Peru; but, notwithstanding these temporary resources, the means continued to fail, and the exigences continued to increase. The equipment of expeditions to Quito, Upper Peru, and Chile; the demand of arrears by the troops that arrived from Spain, and the necessary remittances for the support of the royal armies, preyed heavily on the national funds, so much so, that the treasury dreaded a bankruptcy. The pay of all civil officers was reduced one-third, and at last a viceregal decree was issued, augmenting the tithes from ten to fifteen per cent.: this impost caused the greatest consternation throughout the country, and met with strong opposition from the inhabitants; many of the provinces refused to pay, and the governors were unable to exact it for want of an armed force to protect them against the fury of the people.
General Ramires was left by Pesuela in the command of the army of Upper Peru; but he was soon superseded by General Don Jose de la Serna, who landed at Arica, and proceeded direct to head quarters. This general was sent by the king to command the army, and with power to act independently of the Viceroy, at a time when any change in the established order of things was likely to be most productive of injury to the Spanish cause, and to this may be attributed the inactivity of the army under La Serna.
The tranquillity experienced in Lima till the beginning of 1817 induced the Spaniards to believe that all was well: Chile was quiet, the enemy made no advances in Upper Peru, Quito was under the dominion of Spain, Morillo victorious in Venezuela and Santa Fé; the Mexican insurgent chief, Morelos, had ceased to exist; Ferdinand was restored to his throne; the constitution was abolished; the inquisition was re-established, and monarchical despotism had resumed its seat; new auxiliary troops were preparing in Spain to give the last blow to the patriots in America, and the most sanguine American began to droop for the cause of his country. But a change, unexpected by the Spaniards, and unhoped for by the Americans, took place in Chile on the twelfth of February, 1817, the news of which reached Lima on the ninth of March. This was no less than the entire defeat of the Spanish army at Chacabuco by General O'Higgins: the victory has generally been attributed, but most unjustly, to General San Martin, who was not even present in the action. The following is an extract from the journal of a Spaniard with whom I was acquainted in Lima.
"February 4th, Don Miguel Atero, chief of the staff, informed the government of Santiago, that the enemy had surprised the guards of the Andes, placed about twelve leagues in advance of Santa Rosa, (twenty-five leagues from the capital) and that of seventy-five men, thirteen only had escaped, bringing with them the news, that the enemy was advancing; at the same time Major Vila reported to the government, that the advanced guard at the paso de los Patos had reconnoitred the enemy, and requested a reinforcement. Atero immediately sent a company of Talavera infantry, and then retreated with the division of the army stationed at Santa Rosa, to Chacabuco, leaving behind him two pieces of artillery, ammunition, baggage, and warlike stores: the force stationed at Santa Rosa amounted to about four hundred men.
"February 5th, the Captain-general Marcó ordered Colonel Quintanilla to join the army at Chacabuco, with the battalion of carabiniers; they arrived on the 6th, when Quintanilla immediately advanced to the convent of Curimon to reconnoitre the enemy in Villa Vieja, and having reported to Atero that their number did not exceed six hundred, an attack was immediately ordered, which took place on the morning of the seventh.
"The cavalry engaged that of the enemy in a place called de las Comas; the crafty enemy retired towards the Cordillera, and halted at Putendo, where they were joined by an ambuscade of a hundred horse. Our infantry did not advance with the cavalry, so that as soon as they were overpowered by the enemy they fled in the greatest disorder towards our infantry for support; on their return, to their great surprise they found that the infantry also was in a disordered retreat, without having taken part in the action, and also that the commander in chief, Atero, had fled. Colonel Quintanilla now took the command, and collected the dispersed soldiers; he placed the infantry in the centre, and flanked it with the cavalry, although harrassed in the rear by the enemy in his retreat. Having at length reached Villa Vieja, a council of war was held by the officers, and it was resolved to continue their march to Curimon; on their arrival they learnt that the enemy was about to renew the attack; on hearing which, Colonel Marqueli, to whom Atero had given the command, continued his march to Chacabuco. The victorious army took up its quarters in Villa Vieja: our loss was about thirty carabiniers. There is no doubt that the whole of our loss is to be attributed to Atero, who, observing a party of the enemy's cavalry on an eminence to the right, exclaimed, "we are cut off!" when he immediately mounted his horse and fled. At ten o'clock at night the news arrived at Santiago, and the greatest confusion began to prevail.
"On the morning of February 8th, the two judges, Pereyra and Caspi, and the general of brigade, Olaguer Feliu, fled to Valparaiso.
"On the 9th, Colonel Barañao arrived at Santiago with Colonel Eloriga, and 360 hussars.
"On the 10th, Lieutenant-colonel Morgado arrived with 450 dragoons; at ten o'clock at night Brigadier-general Maroto was appointed by Marcó to take the chief command: our whole force consisted of 1000 cavalry and 1100 infantry.