The Perúvians insisted that Bolívar should retain the power, and passed a decree conferring it on him, without, however, calling him dictator, so as to respect his will. On the same day a decree ordered several honors to be paid him and also that one million pesos (about $1,000,000) be distributed among the officers and soldiers of the liberating army, and that another million pesos be placed in the hands of the Liberator as a token of gratitude of the country.

Bolívar was very much moved, and, to a certain extent, hurt by this pecuniary reward. He declined to accept in the following words:

"I have never wanted to accept, even from my own country, any reward of this kind. It would be a monstrous incongruity if I should receive from the hands of Perú that which I refused to receive from the hands of my country."

Congress finally asked Bolívar to take the million dollars and devote it to charities in his own country and other parts of the republic of Colombia. This Bolívar agreed to do.

Bolívar decided to remain in Perú until the convening of the following congress, which was to assemble in 1826. He immediately bent all his energy to the work of government, in which he was, if possible, more admirable than he was as a soldier. Among the several measures of his administrative work was the establishment of normal schools in the departments, tribunals of justice, several educational institutions, mining bureaus, roads, public charities and multitudinous other services.

On April 1, 1825, Sucre defeated the last Spanish troops in a place called
Tumusla.

Upon the completion of his work, Bolívar started to visit Cuzco and Upper Perú. In the city of Arequipa, on May 16, he issued a decree proclaiming the republic of Alto (Upper) Perú. In Cuzco he was received in triumph. A thousand ladies offered him a beautiful crown set with pearls and diamonds. The Liberator received it and immediately sent it to Marshal Sucre, saying:

"He is the conqueror of Ayacucho and the true liberator of this republic."

From Cuzco, Bolívar went to La Paz, and there he was received in like manner. The assembly of Alto Perù sent representatives to meet him. The country had received the name of República Bolívar (now Bolivia). From there he went to Potosí, where he remained several weeks, accepting the homage and gratitude of the people. There he received several members of the diplomatic corps and a committee sent by the government of Buenos Aires with the purpose of complimenting him for the services he had rendered to the cause of South American independence which, as they said, Bolívar had made secure forever.

He gave Bolivia its first political organization, applying his favorite ideas about the distribution of powers. Here he repeated what he had done everywhere when in command. He established educational institutions; ordered that the rivers be examined in order to study the feasibility of changing their courses so as to furnish water to arid and sterile areas; distributed land among the Indians; suppressed the duties on mining machinery; ordered the planting of trees, and showed in a thousand ways his untiring energy, all the while keeping in active diplomatic correspondence and in constant communication with his friends and civil officers, in order to give instructions in detail. He issued orders from Chuquisaca to have the Venezuelan soldiers sent back to their country from Perú. He even went so far as to entertain thoughts of the independence of Cuba and Porto Rico.