The Araucanians next chose for Toqui an active veteran named Paillamachu, whose career was destined to be of more lasting service to his country than had been that of any of his distinguished predecessors, unless indeed it be said that his career was but the result of their example. Imitating the precedent of Antiguenu, he retreated to the marshes of Lumaco, there to train an army. Loyola having proceeded to Conception, was there met by an Araucanian officer who had been sent to compliment him, and on whose mind he endeavoured to impress an idea of the resources of his sovereign, and of the necessity of submission. He was, however, assured in reply that the Araucanians would never submit to foreign control whilst they had a drop of blood in their veins. Loyola could not but admire the sentiments of the noble Antipillan, whom he dismissed with every demonstration of esteem. He nevertheless was far from relinquishing the policy of his predecessors.
1594.
Passing the Bio-bio, he founded near it a new city, to which he gave the name of Coya, in honour of his wife; and he established two castles to protect it. This proceeding was the signal for attack on the part of Paillamachu, whose lieutenant assaulted Fort Jesus in 1595, but failed to reduce it. In the following year the Araucanian general felt himself in sufficient strength to make frequent incursions into the Spanish districts; but he carefully avoided an encounter with their troops. With the object of restraining him, Loyola erected two new forts, one at Puren and the other on the border of the marshes of Lumaco. In 1597 he also founded a settlement in the province of Cujo, to which he gave the name of St. Louis de Loyola.
1598.
Paillamachu soon took by storm the fort of Lumaco, and the governor prudently demolished that of Puren, to save it from a like fate. Having next repaired the fortifications of Imperial, Villarica, and Valdivia, he returned to the Bio-bio, retaining as an escort only sixty half-pay officers, when he was attacked by the Toqui in the valley of Caralava and put to death with all his retinue. In less than forty-eight hours after this event the whole Araucanian provinces were in arms, as were likewise the Cunchese and the Cuilliches, and the whole country as far as the archipelago of Chiloë. Every Spaniard outside the garrisons was put to death; whilst Osorno, Valdivia, Villarica, Imperial, Canete, Angol, Coya, and the fortress of Arauco, were all at once invested with a close siege. Paillamachu himself, crossing the Bio-bio, burned the cities of Conception and Chillan, laying waste the surrounding provinces.
1599.
The receipt of this alarming news so terrified the inhabitants of St. Iago that they made up their minds to quit the country and retire to Peru. They appointed, however, as temporary governor Pedro de Viscara, a veteran of seventy years, who set out for the frontier with such troops as he could raise. Crossing the Bio-bio in the face of the enemy, he withdrew the inhabitants of Angol and Coya, sending them to Conception and Chillan. At the end of six months he was relieved by Don Francisco Quinones, sent by the Viceroy of Peru to assume the government. Several actions took place to the north of the Bio-bio; the most important occurred on the plains of Yumbel. This battle, fought between nearly equal numbers, continued with incredible fury for nearly two hours, when night parted the combatants, and the Toqui repassed the Bio-bio. The Spanish governor ordered his prisoners to be hanged. After this engagement the fort of Arauco and the city of Canete were evacuated.
1600.
The active Paillamachu went from place to place. He stormed Valdivia, putting to death a great number of the inhabitants, and forcing the remainder to save themselves on board ships, which at once set sail. By this exploit he secured all the cannon of the place, two millions of dollars, and four hundred prisoners. To add to these misfortunes, five Dutch men-of-war now appeared on the coast of Chili, plundering the island of Chiloë and putting the garrison to the sword. A party having attacked the Araucanians on the island of Talca, or Santa Maria, under the belief that they were Spaniards, were repulsed with the loss of twenty-three men.
1602.