THE GOVERNMENT. 141 



of six per cent. ; but payment of interest having been withhold for a long time, a compromise 

 was eiVi vtr.l \\ith tin- crciliturs in 1842, by which the debt was settled at $8,452,700, divided into 

 stocks of two rates ; and a sinking fund was to bo created, from which Chile was to redeem ito 

 obligations at the current prices. Of the Anglo-Chilean loan, a million and a half of dollar* 

 was yielded to Peru, to aid in its struggles for republican government; and on this no interest 

 has been paid. In 1852, Congress authorized President Montt to hypothecate both debt and 

 interest in favor of the railroad between Santiago and Valparaiso. Punctual in the fulfilment 

 of its own obligations even amid civil war, Chile deservedly stands well on 'Change, and its 

 bonds (6's) are constantly quoted above their par value. 



The internal debt ($1,869,975) has been incurred at various times, and the rates of interest 

 paid are from three to ten per cent. twelve per cent, being the common and legal rate in mer- 

 cantile transactions. There is a sinking fund in operation for the liquidation of this obligation 

 also ; and, as the revenues exceed the current expenses already, it is reasonable to suppose that 

 the means at disposal for this purpose will increase in rapid ratio with the grand improvement* 

 in intercommunication commenced under the auspices of the late President. Few nations have 

 shown such broad and liberal views, such meritoriously emulous desire to command the admi- 

 ration of contemporaries. Presenting to mankind the spectacle of stable and systematic 

 government, unsurpassed climate and soil, a profitable market for foreign and domestic products, 

 protection to all industrial pursuits, more than regal patronage to science and art, but two further 

 acts of its legislature seem necessary to advance the moral and physical wealth and population 

 in unprecedented ratios. These are : abolition of tithe laws and the exclusive church ; both of 

 which, as at present administered, are demoralizing and suicidal to a degree appreciable only 

 by those who long to see Chile occupy the rank among nations to which numbers, culture, 

 liberal institutions, and wealth would entitle her. 



