22 THE INCAS AND OTHER RULERS OF PERU. 



intelligent ruler, born in the province of Tarapaca. This was 

 probably the first instance in the history of the country of any 

 eminent man having come forward from that district. 



He succeeded in maintaining peace in Peru during the six 

 years of his first term of office. During that period the first 

 railway fi-om Callau to Lima was constructed by an English 

 company, and the finances and administration of the country were 

 for the first time put into fair working order. His successor, 

 General Echenique, seems to have given some cause of complaint, 

 for, after some three years of government, he was turned out by 

 a revolution, and Greneral Castilla came again into power, until 

 1 862. He wassucceeded by General San Eoman, and subsequently 

 by General Pezet, during whose term of office trouble arose with 

 Spain, which culminated shortly afterwards in war between the 

 mother country and the allied republics of Peru, Chile, Ecuador, 

 and Bolivia. On 2 May, 1866, the Spanish fleet bombarded 

 Callao ; the engagement lasted four hours, and considerable 

 damage was done on both sides. The Sjoanish fleet shortly 

 afterwards sailed homewards, and hostilities came to an end. 

 Peace, however, was not signed between Spain and Peru until 

 1879. The Spanish war occurred during the jDresidency of 

 General Prado, who was turned out by a revolution headed by 

 General Canseco in 1867 ; after ruling the country for six months. 

 General Canseco handed the power to Colonel Balta, president- 

 elect, whose period of office was memorable in many ways ; for 

 the immense impulse given during that time to public works and 

 to the commerce of the country, and for Balta' s tragic death. 



Balta and his advisers decided to commence the construction 

 of railways on a gigantic scale, and, with this end in view and 

 also for the purpose of paying off the accumulated deficits of the 

 Peruvian budget, they issued in Europe through the French firm 

 of Dreyfus, two large loans in 1870 and 1872, which, together 

 with previous loans, brought the total indebtedness of the nation 

 up to £36,000,000 sterling. In connection with these financial 

 operations, a sale of two million tons of guano was agreed with 

 the said firm of Dreyfus. 



The guano had been for some years a most profitable article 

 of export for the Peruvian nation. Its sale on consignment had 



