It was President Montt’s ambition to improve the industrial and financial conditions of the country by establishing the gold standard, and thereby do away with the ruinous fluctuations in the currency values. But in this commendable undertaking he was doomed to disappointment, being defeated in his plans for accomplishing that most desirable reform by the factions that dominated the politics of the Republic, and in 1908-9, the exchange rate reached its lowest level, the Chilean peso being worth at one time only 20 cents U. S. currency, whereas upon a gold standard basis it represents a value of 34 cents.
In May 1910 President Montt attended the inauguration of the centennial exposition of the Argentine Republic in Buenos Aires, making the trip by rail over the Transandine Railway, which was opened to traffic about that time. In July he started on a trip to Europe, going by way of the United States, arriving in New York, August 3. On August 9 he sailed for Europe, arriving in Hamburg on the 16th, where he died soon after his arrival.
After the death of President Montt, Vice-President Elias Fernandez Albano became president. On September 6, of the same year President Albano died and Senator MacIver Como, vice-president of the Council of State became the acting president.
At the regular election in 1910, Don Raymon Barros Luco was elected to the presidency.
INDIANS
The indigenous races of Chile consist of the following tribes: Araucanians, Chilotes, Chonos, Onas, Fueginos, Yahgans, Alacalupes and Patagonians.
The Araucanians, the most powerful, brave, and warlike tribe of South American Indians, formerly occupied all the territory now constituting the northern half of Chile. In the Araucanians the Spaniards met a strong resistance to their invasion of the territory. The tribe then numbered one million, and for three hundred and fifty years they maintained a warfare against the occupation of their country by white men. The Spaniards were unable to subdue them, and even after the war of independence and the establishment of the Republic, they maintained a hostile attitude. Although being gradually and peacefully subjugated they still maintain a sort of independence, living under a form of government agreeable to their common tribal laws and customs. They are now generally engaged in the peaceful pursuits of agriculture.
The Araucanian government consists of a confederation constituted by the union of three independent tribes, each of which is governed by a hereditary chief, called Toqui, or Cacique. A few years ago the territory was divided into sub-districts, for each of which there is a subordinate chief. The Caciques are elected by their respective tribes. They hold armed diets, like the ancient Poles and Germans. In the formation of laws governing their actions, and determining upon military operations, every member of the confederation has a vote.
In more recent years these erstwhile savages have manifested a friendly disposition towards foreigners, some of whom have been admitted to membership in their tribes. These “white Indians,” who usually possess superior intelligence, education and knowledge of the world, sometimes rise to eminence among the tribes. A French lawyer named De Tonneins, once humbugged the Indians into believing in his alleged magical and spiritual attainments to such an extent that the Araucanian tribes proclaimed him king, which distinction he assumed under the title of King Orelie Antonio I, and reigned for several years. The small court by which he was surrounded paid him great deference. His Fraudulent Highness made war against the Chilean government, was captured and deported to his native country, where after several uneventful years, he died in an asylum in Bordeaux.
The Araucanians are a sturdy race, with fine physiques. They are tall, muscular, agile and possess wonderful power of endurance. They are brave to foolhardiness, but lack intelligence, ambition and creative genius. Their stupidity combined with their passions, cruel natures and natural characteristics have prevented them from rising little above the low level of animals in their domestic life. A study of their past history and present conditions has a tendency to disillusionize one who has formed ideas of the Araucanians from descriptions written by historians and tales related by travelers who have never visited the habitations of that peculiar people. In general appearance the Araucanians resemble the other indigenous tribes of North and South America. They are copper colored, have black, straight, coarse hair and deep set, piercing black eyes. There is a trace of foreign blood apparent in many of them, due to their association with the Spaniards who first invaded the country, and shipwrecked sailors, many of whom cast their lots with the Indians, and lived peacefully among them, frequently marrying Indian women.