PERU. 



687 



conceded by Great Britain, taking into consid- 

 eration the honorable dealings which always 

 distinguish the Cabinet of her Majesty." With 

 Bolivia negotiations were pending for a friendly 

 settlement of the customs question, and a new 

 and satisfactory treaty was shortly promised. 

 The railways and the mining operations in the 

 Cerrode Pasco would be vigorously pushed for- 

 ward to completion, funds being forthcoming 

 from the nitrate consignment contract. To 

 avoid the serious disturbances attendant on the 

 popular elections, Congress was requested to 

 give its attention to a thorough reform of the 

 electoral system. 



A law was subsequently voted by Congress 

 amending the Constitution, so that hereafter 

 Congress will assemble annually, instead of 

 every two years as heretofore. The ordinary 

 session will be of sixty days, and that term can 

 not be exceeded. Should circumstances render 

 it necessary, the Executive has the power to 

 convene an extraordinary session for the pur- 

 pose of treating special questions, in which case 

 the session will be limited to forty days. 



The Government has issued a decree order- 

 ing the foundation of a Fine Arts Institution 

 for the teaching of painting, sculpture, music, 

 declamation, and architecture. The purpose of 

 the Government in creating this institution is 

 to offer to young men the opportunity of ac- 

 quiring knowledge that may open to them a new 

 career. This measure is expected to prove 

 beneficial in the work of social improvement. 



Don Manuel Pardo, chief of the Civil party 

 and President of the Senate, was assassinated 

 on entering the Senate, November 16th, by Ser- 

 geant Montoya of the Lima garrison. He had 

 been President of Peru from August 2, 1872, 

 to 1876, and was widely and favorably known 

 throughout South America. The apparent mo- 

 tive for his assassination was the possibility 

 that, by doing away with the leader of the Civil 

 party, dissension and rivalry would appear in 

 its ranks, and his political opponents would re- 

 main in power ; but the Civil party was so well 

 organized by Senor Pardo that its direction has 

 become comparatively easy, and its success is 

 assured in future elections. Sergeant Montoya 

 and thirteen other persons were committed for 

 trial for the assassination. Among those ar- 

 rested as implicated in the crime, but subse- 

 quently released, were two generals and Mrs. 

 Pierola, wife of the well-known revolutionist. 



In the absence of official returns of the pub- 

 lic debt of Peru since 1876, it is estimated as 

 follows : 



Home debt $24,723,551 



Equatorian bonds $38,530 



Bonds of the Pisco and Lima Kail- 

 road 1,323,400 



Loan of 1870 65,707,900 



Loan of 1372 107,633,700 



Difference of interest loan of 1870, f 11 1A1 Ko n 

 arrangement of July, 1S76, f "iWJBO 



Amount of unpaid coupons 26.187,477 



Debt to American consignees 2,700,000 



Total foreign debt 204,732,587 



Total public debt $229,456,168 



Peru having failed to pay the interest on its 

 foreign debt, the British bondholders addressed 

 a memorial to the Marquis of Salisbury, Secre- 

 tary for Foreign Affairs, suggesting an import 

 duty of 6 per ton on all guano imported into 

 England, five sixths of which to be applied to 

 the redemption of the bonds; but it is not 

 probable that the British Government will in- 

 terfere in that way for the benefit of the bond- 

 holders. They claim that the original security 

 given for the bonds held by the British bond- 

 holders covered the following interests : 1. The 

 national good faith. 2. All the stock and de- 

 posits of guano belonging to the republic. 3. 

 The net proceeds of the exportation to Europe 

 and America. 4. The railways from Arequipa 

 to Puno, from Megia to Arequipa, and from 

 Callao to Oroya. 5. All the lines constructed 

 with the proceeds of the loans, and the pro- 

 ceeds of the working of the lines mentioned. 

 6. The works of irrigation that might be car- 

 ried to an end. 7. The general receipts of 

 the republic from customs and other sources. 

 Since the default on the interest of the bonds, 

 Peru has let out contracts to other parties for 

 guano, which the bondholders claim will be 

 ruinous to their interests ; and so long as Peru 

 respects those contracts, the bondholders have 

 little prospect of being paid. 



The receipts for the two financial periods of 

 1873-'74 and 1875-'76 were respectively $62,- 

 753,903 and $66,601,664, and the expenditures 

 $65,500,836, and $65,063,122. The receipts in 

 1877 amounted to $27,082,956, and the expen- 

 diture to $26,254,531, leaving a balance of 

 $916,401 on the 1st of January, 1878. The 

 Government has presented to Congress the 

 general budget for the two years 1878 and 

 1879. The revenue is estimated at $37,862,026, 

 and the outlay at $42,773,568, which may be 

 reduced by economy in the administration. 



There is no direct taxation in Peru ; and the 

 revenue is mainly derived from the sale of 

 guano and nitrate of soda, and from duties on 

 imports, which yielded, in 1873, $8,400,000 ; 



1874, $7,097, 0'OO; 1875, $7,082,000 ; 1876, $5,- 

 541,664; 1877, $4,005,689. The total imports 

 in 1877 amounted to $24,179,094, and the ex- 

 ports, including products and merchandise, 

 were valued at $52,497,747. These figures 

 show conclusively that, were it not for the im- 

 mense indebtedness of the country, it would 

 not belie its traditional fame for riches. 



The exportation of nitrate from the year 

 1874 to 1877 inclusive, according to official 

 data, was as follows, at an average price of $3 

 per cwt. : 1874, 4,761,970 cwt., $14,285,910; 



1875, 6,152,773 cwt., $18,458,319: 1876, 5,966,- 

 423 cwt,, $17,899,269 ; 1877, 4,262,689 cwt., 

 $12,788,067. The Government has entered 

 into a contract with a group of Peruvian and 

 foreign capitalists for the consignment and 

 sale of the nitrate manufactured in the Gov- 

 ernment works. The contract is for five 

 years, and covers all the European markets, 

 and will, it is presumed, be extended to those 



