The president is elected for a term of five years by electors who are chosen by direct vote. He is ineligible to election for two consecutive terms. The salary of the chief executive is 60,000 pesos, equal to about $20,000 in U. S. currency. He is assisted by a Council of State consisting of 11 members, six of whom are appointed by Congress and five by the president; and also by six cabinet ministers who are named by the executive, but are responsible to the Congress.

The constitution having become an established law, Chile made rapid progress along the road of national life, leading to order, authority and prosperity. But it was not until Manuel Montt, who was president from 1851 to 1861, had put down two revolutions that order and executive authority were firmly established, and the force of organized national defense demonstrated. In 1861 Montt was succeeded as president by Jose Joaquin Perez, who continued as chief executive for ten years. The condition of law and order that was established and maintained by the government previous to his election continued throughout his two administrations, and national authority was extended and enlarged until liberty of action and speech was insured to every citizen of the Republic. By his political moderation and conciliation, President Perez established a feeling of internal peace and security that had not been previously felt in the country. Unfortunately Chile was soon to be disturbed again by a war-cloud upon the peaceful horizon. Having secured their own freedom, and established an independent government, the patriotic people were not content to remain indifferent to the arbitrary actions of Spain in taking forceful possession of the Chincha Islands in 1865. By force of public opinion and popular sentiment, President Perez was compelled to make an alliance with Peru, Bolivia and Ecuador, to defend the interests of South American Republics against the domination of Spain.

Spain sent a fleet to blockade the ports of Chile, which was not a difficult undertaking, as the Chilean navy then consisted of one gunboat, the Esmeralda. On November 26, the Esmeralda, under command of Captain William Rebolledo, made a brilliant coup by attacking and capturing the Spanish corvette, Covadonga, which daring deed was accomplished within view of the Spanish squadron blockading the harbor of Valparaiso. The admiral commanding the fleet was so humiliated by the fact that one of his ships had been taken by the Chileans that he committed suicide on board his flagship, a few hours afterwards.

To avenge the loss, and apparently as an act of spite inspired by the humiliating incident of the Covadonga, Spain sent a more powerful fleet to Valparaiso, and on March 31, 1866, bombarded the city, causing considerable loss of life, and destruction of property to the value of fifteen million dollars.

At that time Valparaiso had no land fortifications nor means of resisting an attack from a hostile fleet, and Spain’s action in bombarding the port has been generally condemned. This apparent unjustifiable destruction of a defenseless city was the last armed demonstration of Spain in South America. For three centuries she attempted to govern Chile as a colony, and for the first fifty years of national life of the Republic the threatening attitude of the parent government continued as a menace and an obstacle to progress and industrial development. Peace was not established between the two countries until 1884, but after the bombardment of Valparaiso, there was no further hostile demonstration, and Chile was permitted to direct the force of her energies towards building up neglected national institutions and developing the natural resources of the country.

The bombardment of Valparaiso forced upon Chile a realization of her defenseless position against attack from a naval force. Without a navy to defend her extensive coast country, or fortifications with which to protect her ports, she was at the mercy of any maritime power. To meet this requirement and to strengthen her national position, she acquired a formidable navy, the most powerful in South America, and constructed modern fortifications in all the principal ports. Since that time Chile has been regarded as one of the most formidable and aggressive naval and military powers among the Latin-American Republics.

During the administration of President Perez the liberal element in the Republic began to assert itself, and to demand political reforms. This was the first demonstration and show of resistance against the conservative church party, which had been in control of the government since its formation. The program of the liberals was: “The absolute guarantee of personal liberty; that local governments shall be invested with that complete independence necessary for the thorough exercise of their prerogatives; that the different branches of government shall be independent of each other, that all persons shall be equal before the law and that all special privileges shall be abolished.” This was a move from the oligarchy towards democracy. The liberals scored their first victory in 1868, when Congress passed an amendment to the constitution, making the president ineligible to reëlection. The laws providing for civil responsibility, for political treason, and imprisonment for debt were also abolished by the same Congress.

Don Federico Errazuriz, who was elected to the presidency in 1871, was a man of scholarly attainments, and had had a long and varied experience in public life. He had been minister of foreign affairs, of the interior, of justice, and of war, and had served in both branches of the legislative body.

During the administration of President Errazuriz, the liberal party succeeded in passing a number of reformatory measures, among which was one providing that the clergy should be amenable to the civil authorities, and further that all sects might worship in churches erected by private enterprise. The president also decreed that space should be reserved in catholic or public cemeteries for the interment of dissenters, who could be given the right of burial according to the form of their respective denominations. Against these acts the clerical party filed a remonstrance which was signed by the Archbishop of Santiago; and members of Congress who voted for the measures, as well as magistrates who should attempt to enforce the laws, were threatened with excommunication from the church. But those progressive measures still remain upon the statute books of Chile.

Don Anibal Pinto succeeded Don Federico Errazuriz as president in 1876. His administration was early confronted with a financial crisis, and in 1878 the government authorized the banks to suspend specie payment, and guaranteed their emission of paper money to the amount of $15,500,000, which was made redeemable in coin on August 31, 1879. A year later the government found it necessary to resort to a second issue of paper currency to the amount of $6,000,000.