IOQ4 PERU 



July, when Senor Eduardo Schaerer, formerly mayor of Asuncion, was elected president 

 and Dr. Pedro Bobadilla vice-president. 



The prolonged political upheaval was responsible for severe depression in financial 

 and commercial circles. Early in 1912 attempts were made to float a new loan for 

 1,000,000, of which 400,000 was offered in France. In view of diplomatic repre- 

 sentations, however, and after a discussion in the French Chamber, the whole of the 

 money paid on application by subscribers was returned. The budgets of 1910, 1911 

 and for the first quarter of 1912 showed the heavy deficit of $22,000,000, and a total debt 

 of $27,000,000. Most of the state employes were without salaries. The general 

 financial condition was described " the worst at any time in recent years." Notwith- 

 standing the adverse conditions, the trade and commerce of Paraguay for the year 1910- 

 I i proved rather more favourable than that for the previous twelve months; but the 

 want of money was severely felt. Merchants, while finding it difficult to dispose of 

 stocks during the months of civil war, were enabled to place orders in Europe and else- 

 where on the customary terms of long credit; 42 per cent of the imports entering the re- 

 public were British. The total value of the goods imported for the year 1910 had 

 amounted to 1,196,000, purporting to show a large advance over the previous two 

 years, as did the amount of exports, which came to 950,200. Upon examination, how- 

 ever, the import figures proved misleading, since out of the total above referred to 

 233,000 related to the material for the Paraguayan Central Railway which paid no 

 duty. The progress of the railway suffered considerably in consequence of the political 

 troubles construction was completed to the terminus at Encarnacion and the gauge 

 was finally changed throughout. In June a fusion of railway interests was completed 

 by an American-French Syndicate, the Paraguay Central being brought into working 

 association with the North-East Argentine and the Entre Rios railways. 



In July 1912 occurred the death of Senor Juan G. Gonzalez, a former President (1890- 

 94) who had been deposed and banished to Argentina. In September the British Min- 

 ister, Sir Reginald T. Tower, paid his first official visit to Asuncion. 



PERU 1 



Peru has an estimated area of 679,600 square miles (subject to boundary disputes 

 still unsettled), and the population (mainly Indian and mestizos) according to the most 

 recent estimate is 4,900,000, giving an average of 7.2 inhabitants per square mile. The 

 total public debt amounts to 4,483,230 (680,000 external, but authority to raise a fund 

 of 6,000,000 was granted by Congress on Sept. 12, 1912; 3,803,230 internal). The 

 total mileage of railways is 1728 and that of telegraph lines 6475. The army has a 

 strength of 7000 men, and the navy comprises 14 vessels with a personnel of 250. 



In January 1909 the United States Pacific fleet visited Peruvian waters, and, in com- 

 pliment to the republic, it was agreed between the United States and the republic of 

 Panama that any dispute arising out of the treaty of February (1909) should be referred 

 to the president of Peru for decision. 



Notwithstanding advancing prosperity, in May 1909 a political uprising took place, 

 and the capital itself upon more than one occasion was the scene of disturbance. / Senor 

 Leguia, who had been president since September 1908, was seized by the mob, and his 

 life threatened upon his refusal to sign a document placing the army in charge of political 

 opponents. Timely arrival of a squadron of national troops put an end to the incident. 



An executive decree prohibited the entrance into Peru of Chinese emigrants possess- 

 ing less than 500 in cash. The government also put into force rules restricting the 

 promiscuous entry of Chinese manual labourers, and passed laws for the alienation of 

 public lands, promoting colonisation and stimulating better-class immigration. 



A treaty was signed in September 1909 between Peru and Colombia, settling the 

 boundaries in the far north-east, the signatories being Senor M. F. Porras for Peru, and 

 Senor Luis Tanco Argaez for Colombia. The frontier line between Peru and Bolivia 

 was definitely fixed from the mouth of the Heath to that of the Vaverija. 



1 See E. B. xxi, 264 et seq. 



