The foreign debt of the republic, which in 1898 stood at £693,160 in bonds, was assumed by the Guayaquil & Quito Railway Co. under contracts of 1897, 1898, 1899 and 1900, the government guaranteeing interest on the sum of £2,520,000 railway mortgage bonds for 33 years and recognizing the external debt at 35% of its face value. This debt originated in 1830, when Ecuador seceded from the Colombian confederacy and was charged with 21½% of the indebtedness of the three states. In 1855 the amount was fixed at £1,824,000, and in 1892 it was converted into a new consolidated debt of £750,000. Payments of interest and amortization had been very irregular, and its transfer to a foreign company as the price of a railway concession put an end to a transaction which had been a serious discredit to the country. The amount outstanding on the 31st of December 1907 was 10,808,000 sucrés (£1,080,800). It should be said that the difficulties in regard to this debt arose from a feeling in Ecuador that the part assigned to it in 1830 was much too large, and that it was contracted almost wholly for the benefit of the two northern republics, Colombia and Venezuela.
Money and Measures.—Under the law of 1898, which came into effect on the 4th of June 1900, gold is made the monetary standard in Ecuador, the legal tender of silver being limited to 10 sucrés, and banks of issue being required to hold at least one-half their metallic reserves in gold coin. Previously there had been much confusion in the circulating medium because of the depreciated value of the Quito currency in comparison with that of Guayaquil, but the new law has corrected the anomaly and has given a simple and uniform medium for the whole country. The coinage under the law of 1898 consists of the gold condor, of 10 sucrés, which weighs 8.136 grams, contains 7.3224 grams of fine gold, and is equal to the English pound sterling in value; the silver sucré, of 100 centavos, equivalent to 24d. in value; and smaller coins of silver, nickel and copper, the denominations being decimal parts of the sucré. The sucré received its name from the portrait of General Sucré engraved on the coin, and is legal tender up to 10 sucrés. The paper money circulation consists of the issues of two Guayaquil banks—the Banco del Ecuador, and the Banco Comercial y Agricola, whose united issues on June 30th, 1906, amounted to 7,414,140 sucrés (£741,414). The Bank of Quito at one time issued notes which, according to Whymper, were not current at and south of Riobamba, but it does not appear that this bank is authorized to issue its notes under the new law. The metallic money nominally in circulation on the 30th of June 1906, amounted to 2,587,667 sucrés gold and 2,522,802 sucrés silver. Although the metric system was adopted in 1856, the old Spanish weights and measures—the quintal, libra, vara and fanega—are still in use, the quintal being equivalent to about 101 ℔
Antiquities.—Throughout Ecuador there are still considerable remains of the architectural and artistic skill of the ante-European period. At Cañar, to the north-east of Cuenca, stands the Incapirca, a circular rampart of finely hewn stone, enclosing an open area with a roofless but well-preserved building in the centre; not far off is the Inca-chungana, a very much smaller enclosure, probably the remains of a pavilion; and in the same neighbourhood the image of the sun and a small cabinet are carved on the face of a rock called Intihuaicu. On one of the hills running from Pichincha to the Esmeraldas there are remains at Paltatamba of a temple and a conical tower, the buttresses of a bridge composed of stone and bitumen, portions of a great causeway, and numerous tombs from which mummies and plates of silver have been obtained. At Hantuntaqui similar sepulchral mounds, called tolas, may be seen, as well as traces of military structures. On the plain of Callo, near Cotopaxi, at a height of 8658 ft., the ruins of an Incarial palace, Pachusala, are utilized by the hacienda; and a conical hill at its side is supposed to be of artificial construction. The remains of another fortress and palace are preserved at Pomallacta, and in the neighbouring pueblo of Achupallas an ancient temple of the sun now serves as parish church. In many localities, especially in Imbabura, pottery and various objects are found belonging to the pre-Colombian period, among which five and six rayed stars (casse-têtes) are very numerous.
(A. J. L.)
History.—The territory of the republic of Ecuador, when first it becomes dimly visible in the grey dawn of American history, appears to be inhabited by upwards of fifty independent tribes, among which the Quitus seem to hold the most important position. About A.D. 280 a foreign tribe is said to have forced their way inland up the valley of the Esmeraldas; and the kingdom which they founded at Quito lasted for about 1200 years, and was gradually extended, both by war and alliance, over many of the neighbouring dominions. In 1460, during the reign of the fourteenth Caran Shyri, or king of the Cara nation, Hualcopo Duchisela, the conquest of Quito was undertaken by Tupac Yupanqui, the Inca of Peru; and his ambitious schemes were, not long after his death, successfully carried out by his son Huayna-Capac, who inflicted a decisive defeat on the Quitonians in the battle of Hatuntaqui, and secured his position by marrying Pacha, the daughter of the late Shyri. By his will the conqueror left the kingdom of Quito to Atahuallpa, his son by this alliance; while the Peruvian throne was assigned to Huascar, an elder son by his Peruvian consort. War soon broke out between the two kingdoms, owing to Huascar’s pretensions to supremacy over his brother; but it ended in the defeat and imprisonment of the usurper, and the establishment of Atahuallpa as master both of Quito and Cuzco. The fortunate monarch, however, had not long to enjoy his success; for Pizarro and his Spaniards were already at the door, and by 1533 the fate of the country was sealed. As soon as the confusions and rivalries of the first occupation were suppressed, the recent kingdom of Quito was made a presidency of the Spanish viceroyalty of Peru, and no change of importance took place till 1710. In that year it was attached to the viceroyalty of Santa Fé; but it was restored to Peru in 1722. When, towards the close of the century, the desire for independence began to manifest itself throughout the Spanish colonies of South America, Quito did not remain altogether indifferent. The Quitonian doctor Eugenio Espejo, and his fellow-citizen Don Juan Pio Montufar, entered into hearty co-operation with Nariño and Zea, the leaders of the revolutionary movement at Santa Fé; and it was at Espejo’s suggestion that the political association called the Escuela de Concordia was instituted at Quito. It was not till 1809, however, that the Quitonians made a real attempt to throw off the Spanish yoke; and both on that occasion and in 1812 the royal general succeeded in crushing the insurrection. In 1820 the people of Guayaquil took up the cry of liberty; and in spite of several defeats they continued the contest, till at length, under Antonio José de Sucré, who had been sent to their assistance by Bolivar, and reinforced by a Peruvian contingent under Andres de Santa Cruz, they gained a complete victory on May 22, 1822, in a battle fought on the side of Mount Pichincha, at a height of 10,200 ft. above the sea. Two days after, the Spanish president of Quito, Don Melchor de Aymeric, capitulated, and the independence of the country was secured. A political union was at once effected with New Granada and Venezuela on the basis of the republican constitution instituted at Cucuta in July 1821—the triple confederation taking the name of Colombia.
A disagreement with Peru in 1828 resulted in the invasion of Ecuador and the temporary occupation of Cuenca and Guayaquil by Peruvian forces; but peace was restored in the following year after the Ecuadorian victory at Tarqui. In the early part of 1830 a separation was effected from the Colombian federation, and the country was proclaimed an independent republic. General Juan José Flores was the first president, and in spite of many difficulties, both domestic and foreign, he managed to maintain a powerful position in the state for about 15 years. Succeeded in 1835 by Vicente Rocafuerte, he regained the presidency in 1839, and was elected for the third time in 1843; but shortly afterwards he accepted the title of generalissimo and a sum of 20,000 pesos, and left the country to his rivals. One of the most important measures of his second presidency was the establishment of peace and friendship with Spain. Roca, who next attained to power, effected a temporary settlement with Colombia, concluded a convention with England against the slave trade, and made a commercial treaty with Belgium. Diego Noboa, elected in 1850 after a period of great confusion, recalled the Jesuits, produced a rupture with New Granada by receiving conservative refugees, and thus brought about his own deposition and exile. The democratic Urbina now became practically dictator, and as the attempt of Flores to reinstate Noboa proved a total failure, he was quickly succeeded in 1856 by General Francisco Robles, who, among other progressive measures, secured the adoption of the French system of coinage, weights and measures. He abdicated in 1859 and left the country, after refusing to ratify the treaty with Peru, by which the defender of Guayaquil had obtained the raising of the siege. Dr Gabriel Garcia Moreno, professor of chemistry, the recognized leader of the conservative party at Quito, was ultimately elected by the national convention of 1861. Distrust in his policy, however, was excited by the publication of some of his private correspondence, in which he spoke favourably of a French protectorate, and the army which he sent under Flores to resist the encroachments of Mosquera, the president of New Granada, was completely routed. His first resignation in 1864 was refused; but the despotic acts by which he sought to establish a dictatorship only embittered his opponents, and in September 1865 he retired from office. While he had endeavoured to develop the material resources of the country, he had at the same time introduced retrograde measures in regard to religion and education. The principal event in the short presidency of his successor, Gerónimo Carrion (May 1865-Nov. 1867), was the alliance with Chile and Peru against Spain, and the banishment of all Spanish subjects. Several important changes were made by congress in the period between his resignation and the election of Xavier Espinosa, January 1868: the power of the president to imprison persons regarded as dangerous to public order was annulled; and the immediate naturalization of Bolivians, Chilians, Peruvians and Colombians was authorized. Espinosa had hardly entered on his office when, in August 1868, the country was visited by an earthquake, in which 30,000 people are said to have perished throughout South America. The public buildings of Quito were laid in ruins; and Ibarra, Otavalo, Cotacachi and several other towns were completely destroyed. Next year a revolution at Quito, under Moreno, brought Espinosa’s presidency to a close; and though the national convention appointed Carvajal to the vacant office, Moreno succeeded in securing his own election in 1870 for a term of six years. His policy had undergone no alteration since 1865: the same persistent endeavour was made to establish a religious despotism, in which the supremacy of the president should be subordinate only to the higher supremacy of the clergy.
President Moreno was eventually assassinated at Quito, in August 1875, and Dr Borrero was elected to the presidency, but his tenure of power was short. A revolution headed by General Veintemilla, the Radical leader, then military commandant at Guayaquil, broke out in 1876, and on the 14th of December of that year the government forces under General Aparicio were completely routed at Galte. Veintemilla was proclaimed president, and in 1877 was duly elected by the cortes. He altered the constitution in a more Liberal direction, and struck various blows at the Clerical party, among other things abolishing the concordat with Rome. In 1878 Veintemilla caused himself to be declared elected as president for a term of four years. At the expiration of this period the president assumed dictatorial powers and remained in office as chief of the executive. This action on the part of General Veintemilla led to a union between the Clericals and Moderate Liberals, and resulted in a popular rising throughout the republic, ending in his defeat and overthrow. His power was first restricted to Guayaquil and Esmeraldas, and finally General Rinaldo Flores drove him from Guayaquil, and Veintemilla fled (July 1883) to Peru. Dr Placido Caamaño was then called upon to take charge temporarily, and on the 17th of February 1884 was definitely elected for the presidential period terminating in 1888. Several revolutionary outbreaks occurred during the Caamaño administration, but were successfully suppressed. In 1888 Dr Antonio Flores succeeded Caamaño, the four years following being passed in peaceful conditions. In 1892 Dr Luis Cordero was elected, his administration again plunging the country into an epoch of internal disturbance.
The cause of the troubles under President Cordero was the assistance lent by Ecuador to Chile in the matter of the sale of the cruiser Esmeralda to the Japanese government in 1894, in the middle of the Japanese-Chinese War. The government of Chile arranged the sale of the Esmeralda, but wished to be free from all danger of international complications in the affair. To this end the transfer of the vessel was made to Ecuador, and she proceeded to Ecuadorian waters. On arriving at the Galapagos Islands the flag of Ecuador was replaced by that of Japan and the vessel handed over to the representatives of that nation sent for the purpose. When the part played by President Cordero in this transaction became known, an outburst of popular indignation occurred. An insurrection, headed by General Eloy Alfaro, followed; and after desultory skirmishing extending over a period of nearly a year the government forces were finally routed, President Cordero abandoning his office and escaping from the country.
General Alfaro then assumed dictatorial powers as supreme chief of the nation, continuing in this capacity until the 6th of February 1897, on which date he was declared to be elected president of the republic. A series of revolutionary movements against the administration of President Alfaro occurred in the course of the next few years. Many of these risings were due to the intrigues of the Church party, and in view of these circumstances President Alfaro curtailed the influence of the clergy in several directions. On the 31st of August 1901 General Alfaro peacefully handed over the presidency to his elected successor, General Leonidas Plaza.
General Plaza continued the anticlerical policy of his predecessor. Civil marriage and divorce were introduced, and in 1904 all religions were placed on a position of equality in the eye of the law, and the foundation of new monasteries and convents was forbidden. The final year of Plaza’s tenure of office was marked by a still stronger measure, all the property of the church being declared to be national property, and let to the highest bidders. In 1905 the Opposition made an effort to effect a change of policy, and were successful in obtaining the election of Lizaro Garcia, a well-to-do merchant and a director of the Banco commercial y Agricola. General Alfaro, however, appealed to arms, ejected Garcia from office, and made himself ruler with practically dictatorial powers.