The "Illustrious American" then returned to France to realise a financial plan which was to transform his country, and to conclude a contract with the great Jew bankers. He formed a privileged company which was to exploit the country, obtain concessions of land, and organise what financiers call the mise en valeur of new territories. The Constitution promulgated, Guzman-Blanco was elected President of the General Council. In 1882 he expounded to Congress the benefits of his autocracy: material development, budgetary surpluses, extended cultivation, and political stability.

Until 1886 Guzman-Blanco was President of the Venezuelan democracy, or its minister in European capitals. His power was absolute; he imposed new leaders, left the country, returned; he was the Protector of the Republic. From the enchanted banks of the Seine he directed the febrile development of Venezuela. Like Porfirio Diaz in Mexico and Rosas in the Argentine he conquered all other leaders, imposed peace, organised and unified, and ruled by terror or by sentiment. A caudillo without definite political ideas, he loved power and his native country. State, Church, parties, and national riches, all were his; they were the domains of this feudal baron. His enemies accused him of enriching himself at the expense of the national property, but his work in the material world was fruitful; he built roads, erected buildings, and stimulated the development of the national fortune. In matters of policy he affirmed the inviolability of the country against foreign aggression; he was a democrat as against the conservatives. He loved pomp and triumph, sumptuous external shows, sonorous phrases, and the servile adoration of the crowd.

He had an enormous faith in his own work. In 1883 he stated that Venezuela, under his authority, "had undertaken an infinite voyage towards an infinite future." His dictatorship appeared to him as necessary, providential: "the people insist upon it so that we may be saved from anarchy." He aimed at "the regeneration of the country"; and his was the responsibility for this work; but the greatness also was his. "I have never followed the thought of any but myself," he said. Indeed, we may apply to him the classic phrase descriptive of absolutism: "L'Etat c'est moi."[[1]]

[[1]] En defensa del Septenio, Paris, 1878, p. 29.

CHAPTER II
PERU: GENERAL CASTILLA—MANUEL PARDO—PIEROLA

The political work of General Castilla—Domestic peace—The deposits of guano and saltpetre—Manuel Pardo, founder of the anti-military party—The last caudillo, Pierola: his reforms.

The gestation of the Republic of Peru was a lengthy process. The vice-kingdom defended itself against Colombian, Peruvian, and Argentine troops: against the armies of Bolivar and San Martin. Here the penates of Spain were preserved: the treasure, the vigilant aristocracy, the warlike armies. It was not until 1824, when America was already independent, that the victory of Ayacucho liberated Peru from the Spanish rule.

Bolivar wished to give Peru the same constitution as Bolivia; to force the institution of the irremovable President on the anarchy of these republics; but the municipality of Lima refused the project. The Peruvians exalted the Liberator; "hero" and "demi-god" the poets called him; his praise was sung in the churches; the Congress granted him riches and honours. His generals were struggling for the supreme command. The Colombian hero returned to his own country, and at once President followed President and revolution revolution. The history of the first twenty years of the Republic, as in Mexico and the Argentine, records only the clash of the forces of society organised and disciplined by the colonial régime. Generals and "doctors," autocracy and anarchy, the oligarchy of the vice-kingdom and the advancing democracy, all were at war among themselves. Byzantine factions struggled to attain the supreme power in the assemblies and the barracks. Aristocratic Presidents—Riva Aguero, Orbegoso, Vivanco, and military Presidents—La Mar, La Fuente, Gamarra, followed one another with bewildering rapidity. In the south Arequipa, the home of a tenacious race, engendered terrible revolts. External wars, such as that with Colombia in 1827 and Bolivia in 1828 and 1835 (to repulse the protectorate of Santa-Cruz), were really due to the quarrels of ambitious generals who were disputing the succession of Bolivar. New nations, whose frontiers as yet were vague, had not yet acquired a national consciousness. Santa-Cruz, President of Bolivia, unified Peru, founding a confederation, from Tumez to Tarija, necessary to the equilibrium of American politics; but he was a foreign President. Amid the host of provincial chiefs a general presently arose who for twenty years was the energetic director of the nation's life—Don Ramon Castilla.