109 6 SALVADOR 



collapsed owing to the prompt steps taken by the government. The exodus of Peruvians 

 from northern Chile continued unabated, leaving the Chilean mines and nitrate fields 

 bare of labour. In the autumn relations with Chile much improved, public processions 

 being held through the streets of Santiago-de- Chile in honour of Peru's centennial. 



A treaty of amity, commerce and navigation between Peru and Cuba was signed at 

 Lima on April 25, 1912. The Peruvian navy was now reorganised, the Government 

 purchasing a discarded French cruiser, the " Puy de Lome," for the sum of 150,000, in 

 addition to two submarines, bringing up the total strength to 9. The new vessels were 

 brought over from France by Rear-Admiral Villvicencio in March. 



The presidential elections, which were fixed for May 25, 1912, were productive of 

 so much political trouble that it was found impossible to hold them upon the date select- 

 ed. The President, who had been petitioned to postpone the date, refused to interfere, 

 or to summon a Special Congress, leaving the question to be dealt with by the ordinary 

 Congress meeting July 28th. There were two candidates, Senor Aspillaga, supported 

 by a combination of several important factions, and Senor Guillermo Eduardo Billing- 

 hurst, who had been mayor of Lima since 1909, vice-president of the republic (1908), 

 and minister to Chile (1900-1902). Senor Billinghurst was elected August igth. He 

 commenced his term on September 25, 1912, the period being for 4 years and terminat- 

 ing in 1916. The President's first Cabinet was composed of Dr. Elias Malpartida, presi- 

 dent of the cabinet and minister of government; Dr. Wenceslao Valera, minister of 

 foreign affairs; Mr. Baldomero F. Maldonado, minister of finance and commerce; 

 General Enrique Verala, minister of War and Navy; Dr. Francisco Moreyra y Riglos, 

 minister of justice, church and instruction; Mr. Fermin Malaga Santolaya, minister of 

 Fomento and public works. 



Grave scandals in connection with the conduct of an Anglo-Peruvian concern, the 

 Amazon Rubber Company, whose business was carried on in the district of Putumayo, 

 were brought to light in an official report (July 1912) made by Sir Roger Casement, 

 British Consul-General at Rio, who was deputed to hold an investigation. It was shown 

 that a terrible system of cruelty prevailed in compelling the natives to collect rubber, 

 and public opinion in England and America was deeply stirred. The Peruvian govern- 

 ment was blamed for allowing these scandals to exist, but defended itself by declaring 

 its entire ignorance of the state of affairs, and claiming to have subsequently sent a 

 commission to investigate crimes and punish the offenders. Three further commissions 

 were nominated to draw up a scheme of reforms, while a judge and a commissioner were 

 appointed to reside in the district. 



The conditions of trade meanwhile showed further improvement, the revenue from 

 all sources displaying an increase. The estimated revenue for 1911-12, namely 2,784,- 

 513, was exceeded by 442,904. With other sums brought in, the excess amounted to 

 607,602. On the other hand the estimated expenditure for the same period was exceed- 

 ed, amounting to 594,035, leaving a balance in the treasury of 13,567. The receipts 

 for the year 1912-13 were estimated at 3,209,237 and the expenditure at 2,879,924, 

 showing a surplus of 329,113. 



The Senate (Sept. n, 1912) approved an internal loan for 6,000,000 for pur- 

 poses of national defence, while the Chamber of Deputies (Oct. i7th) sanctioned a 

 loan for $1,500,000 (300,000) at a maximum interest of 8 per cent. 



SALVADOR l 



Salvador has an area of 7225 square miles, and the population according to the most 

 recent estimate is 1,700,000, giving an average of 235.2 per square mile. Imports were 

 valued in 1910-11 at 1,078,074 and exports at 1,681,262, imports from Great Brit- 

 ain being valued at 328,847 and exports to Great Britain at 104,604. The revenue 

 was estimated according to the budget of 1912-13 at 13,140,415 pesos gold, and the 

 expenditure at 13,095,101 pesos gold (i peso gold = 4s.; i peso paper = 35. id.). The total 

 public debt amounts to 2,585,500 (885,500 external and 1,700,000 internal). The 



1 See E. B. xxiv, 96. 



