If Mexico has been the least fortunate of all the Spanish provinces of America, Chili furnishes the best example of a well-ordered, settled, and prosperous State. Its area is only one-fifth and its population one-fourth that of Mexico, but its foreign commerce is nearly one-half larger.[47] For this commerce its situation is peculiarly favourable. Chili, a long and narrow country, lies on the Pacific, with which it communicates by upwards of fifty sea-ports. It is therefore only in small measure dependent for its progress upon railways and navigable rivers.
For sixteen years after throwing off the Spanish yoke,[48] Chili was governed, despotically, without a constitution. During those years constant disorders prevailed. At length the general wish of the nation was gratified. 1833 A.D. A constitution was promulgated, under which the franchise was bestowed on every married man of twenty-one years, and on every unmarried man of twenty-five who was able to read and write. With this constitution the people have been satisfied. The government has been throughout in the hands of a moderate Conservative party, which has directed public affairs with firmness and wisdom, and has manifested zeal in the correction of abuses. Opposing parties have not in Chili, as in the neighbouring States, wasted the country by their fierce contentions for ascendency. In the exercise of a wise but rare moderation, the views of either party have been modified by those of the other. A method of government has thus been reached which men of all shades of opinion have been able to accept, and under which the prosperous development of the country has advanced with surprising rapidity.
During the last thirty years the population of Chili has quadrupled, and her revenue has increased still more largely. Immigration from Europe, especially from Germany, has been successfully promoted. Formerly almost all land was held by large owners. This pernicious system has been in great measure destroyed. Estates have been subdivided, and the system of small proprietorship is now widely prevalent. The public debt of Chili is twelve million sterling; but as she, unlike her sister republics, meets her obligations punctually, her name stands high on the Stock Exchanges of Europe. The education of her people receives a fair measure of attention. Of her revenue of three and a half million, she expends a quarter million upon schools—a proportion not equalled in Europe. But this liberal expenditure is recent, and has not yet had time to produce its proper results. Only one in twenty-four of the population attends school; only one in seven can read. Even in the cities the proportion is no greater than one in four.
The neighbouring State of Peru has an area four times that of Chili, but her population is scarcely larger. And while Chili has a very inconsiderable proportion of Indians, it is estimated that fifty-seven per cent. of the Peruvian population are of the aboriginal races, and twenty-three per cent. are of mixed origin. The remainder are native Spaniards, Negroes, Chinese, with a very few Germans and Italians. From a nation so composed, a wise management of public affairs can scarcely be hoped for. The government of Peru has been, since the era of independence, a reproach to humanity. Elsewhere on the continent there has been the hopeful spectacle of a people imperfectly enlightened, but animated by a sincere love of liberty, and struggling against tremendous obstacles towards a happier political situation. The incessant strifes which have devastated Peru have no such justification. They have no political significance at all; they do not originate in any regard to national interests. Turbulent military chiefs have, in constant succession and with shameless selfishness, contended for power and plunder. A debased and slothful people, wholly devoid of political intelligence, have become the senseless weapons with which these ignoble strifes have been waged. The vast wealth with which Nature has endowed the land has lain undeveloped; the labour, with which the country is so inadequately supplied, has been absorbed by the wars of a vulgar and profligate ambition: Peru remains almost worthless to the human family.
Spain took courage, from the disorders of Peru, to meditate the restoration of her lost colonial empire. She attacked Peru; but her fleet was utterly defeated, after a severe engagement. 1866 A.D. This victory roused the spirit of the Peruvian people, and for a short space it seemed as if impulses had been communicated which would open an era of progress. For some years real industrial advance was made. But the fair prospect was quickly marred. Two Presidents, who manifested a patriotic desire to begin the work of reform, were murdered. An insane war against Chili was begun. Chili had imposed certain duties on products imported from Bolivia; and Peru, disapproving of these duties, went to war to avenge or annul the proceeding. The fortune of that war has been decisively against the aggressor. Chili has proved not merely equal to the task of holding her own; she has defeated her enemy in many battles; she has seized portions of her territory; she has captured her most powerful iron-clad ship of war. The progress of Peru has utterly ceased. 1880 A.D. Her finances are in the wildest disorder. Her paper currency is worth no more than one-tenth its nominal value. Her ports are blockaded; her commerce is well-nigh abolished. But her misguided rulers will listen to no suggestion of peace, and seem resolved to maintain this discreditable contest to the extremity of prostration and misery.
Peru is believed to extract silver from her mines to the annual value of a million sterling; an amount somewhat smaller than these mines yielded down to the war of independence. Peru exports chiefly articles which can be obtained without labour or thought. The guano, heaped in millions of tons on the islands which stud her coasts, was sold to European speculators, and carried away by European ships. But these vast stores seem to approach exhaustion. Fortunately for this spendthrift Government, discovery was made some years ago of large deposits of nitrate of soda, from the sale of which an important revenue is gained.
For Peru, lying chiefly between lofty mountain ranges remote from the sea, railway communication is of prime importance. In the time of one of her best Presidents there was devised a scheme of singular boldness; and by the help of borrowed money, on which no interest is paid, it has been partially executed. A railway line, setting out from Lima, on the Pacific, crosses the barren plain which adjoins the coast, climbs the western range of the Andes to a height of nearly sixteen thousand feet, and traverses the table-land which lies between the great lines of mountain. When completed, it will reach some of the tributaries of the Amazon, at points where these become navigable—thus connecting the Pacific with the Atlantic where the continent is at the broadest. There are, in all, about fourteen hundred miles of railway open for traffic in Peru, three-fourths of which are Government works.
1811 A.D. Paraguay, a State with an area nearly twice that of England, and a population of a million and a half, had the good fortune to assume her independence without any resistance from the mother country, and therefore without requiring to undergo the sacrifices of war. For nearly thirty years she was ruled by a despotism not less absolute than that of Spain. Dr. Francia became Dictator for life. He had been educated as a theologian, and was a silent, stern, relentless man, who inspired his people with such fear that even after his death they scarcely ventured to pronounce his name. Francia did something to develop the resources of the State. But progress was slow, for the Dictator permitted no intercourse with other nations. Paraguay was to supply all her own wants—depending for nothing on the outside world. Whosoever came within her borders must remain; he who obtained permission to go out might not return. 1840 A.D. When this strange ruler died his power fell to Carlos Lopez, who maintained for twenty-two years a despotism not less absolute, but guided by a policy greatly more enlightened. He encouraged intercourse with foreigners; he constructed roads and railways; he cared for education; he created defences and a revenue. 1862 A.D. Before he died he bequeathed his authority to his son.