24 THE INCAS AND OTHER RULERS OF PERU. 



couutiy, after centuries of peaceful obscurity. !For nitrate of 

 soda was the cause of the war between Chile and Peru, which 

 resulted in great accession of wealth to the former country, and 

 in the consummation of the latter's financial ruin. 



The origin of tbe quarrel was a somewhat complicated ques- 

 tion about nitrate grounds in Bolivian territory near to the port 

 of Antofagasta, some little distance to the south of Tarapaca, 

 where Chilian citizens possessed certain interests. Peru thought 

 fit to support Bolivia, in compliance with a secret treaty which had 

 existed between both republics since 1873. Chile gladly accepted 

 the challenge, conscious of her strength, having little fear of 

 Bolivia, and having long cherished a desire to become possessed 

 of the valuable nitrate grounds of Tarapaca. The course of the 

 war would take too long to describe. Suffice it to say that it 

 ended, after two years of bitter fighting, in the occupation of 

 Lima by the Chilian forces, and the crushing defeat of Peru. 

 The Chilians permanently annexed the coveted nitrate grounds at 

 Tarapaca, and took possession for a term of years of further 

 territory to the north known as Tacna and Arica. In the mean- 

 time, after the first Chilian victories, President Prado had been 

 driven out of the country by the pressure of public opinion. He 

 was succeeded by a dictator, Don Nicolas de Pierola, who in his 

 turn gave way to General Caceres. The latter again gave way 

 to Colonel Iglesias who signed a treaty of peace with Chile at 

 Ancon in October, 1883, giving up the soutliern territories on the 

 terms described above. 



After the evacuation of the country by Chile, civil war sprung 

 up between the rival parties in Peru, ending in the triumph of 

 Greneral Caceres in June, 1886, Caceres completed his constitu- 

 tional period in 1 890, and was succeeded by President Morales 

 Bermudez, ■\\ho like Castilla was a native of Tarapaca. Since 

 then, there has been no noteworthy political disturbance in Peru, 

 and that country has been during the last few years gradually 

 recovering from the disastrous effects of the Chilian war. AVe 

 may note that under the rule of President Caceres in 1889, Peru 

 gave up its railways for a term of 60 years to its foreign bond- 

 holders, united under the title of the Peruvian Corporation, as 

 consideration for the release from all its foreign liabilities, then 



