About the end of July he received a letter from Pueyrredon telling him not to draw upon the treasury as he had been authorized to do, for it was found impossible to raise the projected loan. San Martin at once sent in his resignation, which caused such consternation in official circles that he was again authorized to draw for the full amount specified. At that time there arrived in Mendoza various remittances of coin from Chile to merchants in Buenos Ayres. San Martin seized this money on the pretext that transit was not safe, which was quite true, and gave the owners drafts on the national treasury in exchange. Pueyrredon, with great difficulty managed to pay these drafts on presentation, but he wrote to San Martin:—

“If you do that again, I am bankrupt, and we are lost.”

With these resources and other remittances which followed, San Martin replenished the empty chest of the Army of the Andes with 200,000 dollars, and the situation was saved.

His spare time in Mendoza he filled up by making elaborate calculations concerning the men, arms, and equipment necessary for his projected expedition to Peru, while Pueyrredon and the diplomatic corps were as fully occupied in the construction of a scheme which was to render the expedition unnecessary. It was proposed that a conference of European powers should nominate a sovereign who should unite all the Spanish colonies south of the Equator under his sway. Of this monarchy San Martin and his army was to be the right arm. Of all this San Martin was fully informed, and to the scheme he made no opposition, but went on all the same with his calculations, till he crossed the Andes in October, and on the 29th of that month dismounted at the gate of his palace in Santiago full of hope, for his last letter from Pueyrredon announced the despatch of two vessels of war for service on the Pacific.

Bolívar, victorious in Venezuela and encouraged by the victory of Maipó, was at this time preparing for another passage of the Andes.

Spain in eight years of warfare had sent sixteen expeditions to America, with more than 40,000 veteran troops, had expended seventy-five millions of dollars, and seemed in no way as yet inclined to relinquish the attempt to subdue her rebellious colonies. She had yet 100,000 soldiers and militia in America, and was preparing a fresh expedition of 20,000 men for despatch to the River Plate.

Thus while diplomatists amused themselves and the world with visionary schemes for securing the independence of America, those more nearly interested in the question thought only of settling it by fire and sword.

CHAPTER XX.
THE FIRST NAVAL CAMPAIGN ON THE PACIFIC.
1818.

WHEN San Martin in 1814 at Tucuman first made a sketch of his continental campaign, he saw that the true road from Chile to Lima was by sea. At that time both oceans, from California on the Pacific to the Gulf of Mexico on the Atlantic, were dominated by the Spanish navy. Chile had but a few fishing-boats among the islands of the South Pacific, yet from the extent of her sea-line, from the number of her ports, and by her geographical position, shut in on a narrow strip of land between the Andes and the sea, Chile was eminently fitted to be a great naval power. Travelling by land was so difficult, that the sea was the natural road of communication between the different districts. In the forests of Arauco the pine and the oak tree flourished luxuriantly, her valleys produced hemp and flax in abundance. In the bowels of the earth were stored up vast supplies of copper, iron, and coal. Chacabuco and Maipó had secured the independence of Chile, but without a fleet further progress was impossible.

After Chacabuco the Spanish flag was still kept flying on the forts of Valparaiso. Deceived by this stratagem, the Spanish brig Aguila entered the harbour and was captured. She was armed with 16 guns and named the Pueyrredon, and an Irishman named Morris was put in command. His first exploit was to sail to the island of Juan Fernandez to the rescue of the Patriots there imprisoned by Marcó and by Osorio.