The fact was, that the proceeds of the captures were appropriated by the Government, which, to avoid repayment, declared that the conquest of Valdivia was a restoration! though the place had never been in possession of Chili. On my refusing to allow the stores I had brought from thence to be disembarked, unless as a compensation to the seamen, it was alleged as a reason for the course pursued that even if Valdivia had not belonged to the Republic, Chili did not make war on every section of America. It was therefore put to my liberality and honourable character whether I would not give up to the Government all that the squadron had acquired?

These views were written by Monteagudo, afterwards the willing instrument of General San Martin in Peru. I asked him, "Whether he considered that which had been advanced as just, or according to law?" The reply was, "Certainly not, but I was ordered to write so!" Finding that I would surrender nothing, it was next debated in the Council whether I ought not to be brought to a court martial for having delayed and diverted the naval forces of Chili to the reduction of Valdivia, without the orders of Government!

No doubt this course would have been decided on but from the unsettled condition of the Republic and fear of the populace, who denounced the views of the Ministry as heartily as they advocated my proceedings.

As nothing in the shape of justice could be obtained for the squadron, on the 14th of May, I begged His Excellency the Supreme Director to accept the resignation of my Commission, as, by retaining it, I should only be instrumental in promoting the ruin which must follow the conduct of his advisers; at the same time telling him I had not accepted it to have my motives misconstrued, and my services degraded as they had been on account of objects which I was unable to divine, unless, indeed, a narrow-minded jealousy, such as that which designated the capture of Valdivia, its "restoration," though it had never before passed from under the dominion of the Spaniards.

This course had not been anticipated, though it was not adopted in any spirit of intimidation, but from repugnance to the heartless ingratitude with which important national services had been met. The Ministers were, however, thus brought for a time to their senses, the justice of my complaints being acknowledged, and every assurance given that for the future the Government would observe good faith towards the squadron. An estate, as has been said, had been offered to me as a reward for my services, which was declined for reasons already adduced. The offer was now renewed, but again declined, as nothing but promises were as yet forthcoming to the service, and the only hold upon the seamen was my personal influence with them, in consequence of my unyielding advocacy of their rights—a hold which I was not likely to forego for a grant to myself. In place, therefore, of accepting the estate, I returned the document conveying the grant, with a request that it might be sold, and the proceeds applied to the payment of the squadron; but the requisition was not complied with.

Seeing that I was determined not to be trifled with, and shamed by my offer of applying the estate to the payment of the men, General San Martin, who was appointed to command the military portion of the expedition to Peru, came to Valparaiso in June, and on the 13th of July, the squadron was paid wages in part only, but as I insisted on the whole being liquidated, this was done on the 16th; but without any portion of their prize-money. My share alone of the value of captures made at and previous to the capture of Valdivia was 67,000 dollars, and for this I received the assurance of the Supreme Director that it should be paid to me at the earliest possible moment; upon which I accepted the estate which continued to be pressed upon me, the grant expressing the purpose for which it was given, adding as a reason that "my name should never cease from the land." This estate, situated at Rio Clara, was, after my departure from Chili, forcibly resumed by the succeeding Government; and the bailiff, whom I had placed upon it for the purpose of seeing how it could be improved by culture and the introduction of valuable European seeds, was forcibly expelled from its supervision.

On my first refusal to accept the estate—for the reason before assigned—in order to convince the Chilians how great was my desire to be enrolled amongst the number of their citizens, I purchased a hacienda at Herradura, about eight miles from Valparaiso. The effect produced by this upon the Ministry was almost ludicrous. It was gravely argued amongst them as to what I, a foreigner, could intend by purchasing an estate in Chili? The conclusion to which they came being, as I was credibly informed, that as the whole population was with me, I must intend, when opportunity served, to set myself up as the ruler of the Republic, relying upon the people for support! Such was statesmanship at that day in Chili.

It so happened, that soon after purchasing this property I pointed out to the Government how much better the Bay of Herradura was calculated for a naval arsenal, than the ill-protected Bay of Valparaiso; offering at the same time to make them a gratuitous present of all the land required for the establishment of a naval arsenal and marine depot. This offer was, no doubt, construed into an act, on my part, to gain additional popularity—though this, perhaps, would have been no easy matter; and a notice was served upon me not to make any improvements, as the Government intended to appropriate the estate—but would not reimburse any outlay, though they would repay me the purchase money, and also for any improvements that had already have been effected!

I instantly solicited an explanation of the Supreme Director, and received an apology, attributing the whole affair to the officiousness of the Attorney-General, who had founded his proceeding on an old Spanish law; and there, for a time, the matter dropped, but for a time only—viz. so long as the necessities of the state required my services.

A new source of annoyance now arose, in all kinds of attempts to lessen my authority in the navy, but as I was always on the alert to maintain my position, these resulted in nothing but defeat to their concoctors. At length an overt act was committed in the appointment of Captain Spry as my flag captain on board the O'Higgins, which had been repaired at Valdivia, and was now come down to Valparaiso. An order to this effect was sent to me, which I promptly refused to obey, adding that Captain Spry should never tread my quarter-deck as flag captain, and that if my privilege as an admiral were not admitted, the Government might consider my command as at an end, for so long as I continued in command of the squadron, I would not permit an executor of my orders to be forced upon me. The point was immediately conceded, and Captain Crosbie was appointed flag captain.