The liberty of industry, provided that same be in no way harmful. The liberty of association. The right of petitioning for justice or pardon, individually or collectively, but in due form and manner. ART. 8. Treason against the country, military cowardice and insubordination, desertion in the field, peculation, breach of public trust, bribery, embezzlement of public property, premeditated and treacherous homicide, robbing in gangs, whatever be the condition of the guilty party or the character with which he be invested, will be judged according to military law during the present war, and capital punishment inflicted. The property of anonymous societies, industrial, mercantile, or banking establishments, will be considered as public property for the application of the sentence. ART. 9. Civic virtues and brave and heroic deeds will be rewarded by the munificence of the nation through the medium of its head. ART. 10. A council of state is hereby created, composed as follows: Of the archbishop of Lima. The president of the congress of jurists. The president of the supreme court of justice. The president of the comptroller's office. The prior of the consulate court (of commerce). The rector of the University of Lima, and six councillors more, who will be appointed by the Supreme Head of the Republic, and one of whom must be a general of the army. ART. 11. The government will consult the council of state with regard to such matters as, in its opinion, may require it. It will also act as a court of appeal and final decision in all litigious questions connected with the administration. ART. 12. This statute will remain in force until the republic be endowed with definite institutions. Given in the government house in Lima this twenty-seventh day of the month of December, 1879. NICOLAS DE PIEROLA. The secretary of state for foreign affairs and worship, and temporarily for government and police: PEDRO JOSÉ Calderon. The secretary of state for justice and instruction: FEDERICO PÁNIZO. The secretary of state for public works, commerce, &c.: MARIANO ECHEGARAY. The secretary of state for war: MIGUEL IGLESIAS. The secretary of state for maritime affairs: MANUEL VILLAR. The secretary of state for financial matters: [Inclosure 8 in No. 98. Military organization of the Republic. Nicolás de Piérola, Supreme Head of the Republic. Considering: That it is absolutely necessary to furnish the country with a proper military organization in order to insure the defense of its sovereignty and integrity of its terri tory, I decree: ARTICLE 1. The military forces of the nation will be formed of four armies in active service, as follows: Two armies of the south, styled first and second, respectively; one army of the center; one army of the north. ART. 2. The reserve forces of these armies will be divided into movable and stationary reserves. ART. 3. The following rule will be observed in raising the contingents for the formation of the different armies: Every Peruvian from 18 to 30 years of age must enter the army on active service, and those from 31 to 50 years old the reserve. ART. 4. The respective contingents will be formed by the sub-prefects of the provinces, and placed at the orders of the departmental authorities. ART. 5. The following are exempted from obligation of belonging to the ariny on active service and the movable reserves: 1st. All public employés in general. 2d. Professors of instruction exercising their profession. 3d. Members of colleges and universities. 4th. Those citizens who contribute 50 soles or more monthly for the war. 5th. Proprietors and employés of printing offices and printers. 6th. Lawyers and medical men exercising their professions, as proved by the respective license. 7th. Hospital and ambulance employés. 8th. The only sons of widowed mothers. 9th. The only brother of any citizen killed in the battles of the present war. 10th. All citizens physically disqualified for the profession of arms. ART. 6. The stationary reserve will be formed of the citizens exempted by the foregoing article, and the superfluous forces of the movable reserve. ART. 7. The contingents of the army on active service which result to be superfluous will join the reserves. ART. 8. The organization of the armies will be decreed separately. ART. 9. The secretary of state for war is intrusted with the fulfillment of this de cree. Given in the government house in Lima this 25th day of December, 1879. MIGUEL IGLESIAS, N. DE PIEROLA. No. 106.] No. 525. Mr. Christiancy to Mr. Evarts. LEGATION OF THE UNITED STATES, Lima, Peru, January 21, 1880. (Received February 17.) SIR: I have the honor to inclose translations of nine several decrees of the dictatorial government of Peru. I call special attention to inclosures Nos. 3 and 5, in reference to the currency of the country, adopting gold as the standard coin and the pound sterling as the denomination for general use. The value of paper soles, when received for taxes or duties due the government, has been fixed at 12 pence sterling for the present (see No. 5), though in private transactions between individuals the rate ranges from 11 to 12 pence, and is daily fluctuating within these limits. I also call special attention to the circulars issued by the secretary of foreign relations (Nos. 6 and 7) to the representatives of friendly and neutral nations in reference to the war, and the question of the right of neutral vessels to ship, under the authority of Chili, nitrates from the nitrate beds in those parts of Bolivia and Peru now in pos session of the Chilian forces. This is a peculiar question, and one upon which I would like to receive and follow the views of the Depart ment. I have, &c., I. P. CHRISTIANCY. [Inclosure 3 in No. 106.-Translation.] The currency of the country. OFFICE OF THE SECRETARY OF FINANCE Nicolás de Piérola, Supreme Head of the Republic. First. That one of the principal causes of the present bad condition of business affairs ha been tle creation of paper money of forced circulation, and for this reason, it being urgent to put an end to the changeable value of the actual circalating medinm, ruinons alike to comme ce, industry in genera!, and especially to employés of the government and the laboring classes; Secondly. That among the precious metals gold unites the best properties for use as money; Thirdly. That it being impossible to coin at once national gold coin, it is necessary to adopt one of the foreign circulating mediums; Fourthly. That the pound sterling has the most extensive circulation and is the one which is almost wholly adopted as the basis of drafts, and it being also the unit in which we ought to receive a considerable portion of our income; I decree: 1st. That gold be considered the legal circulating medium, and I will shortly issue the new law in conformity with which national money shall be coined. 2d. Meanwhile the pound sterling will be adopted as the legal money. 3d. The public receipts and expenditures shall be fixed and met in said money. 4th. Obligations contracted from now in future shall be considered by the tribunals of justice as stipulated in this money, if they do not contain an express condition to the contrary. Regarding anterior contracts, whatever currency is therein expressed shall not be iguored, and in consequence will be complied with in the money agreed upon. The secretary of state in the office of the department of treasury and commerce is charged with the due execution of this decree, and will cause it to be published and made known. Given at the government house in Lima on the 14th day of January, 1880. MANUEL A. BARINAGA. N. DE PIEROLA. [Inclosure 5 in No. 106.-Translation.] Value of the paper note. Nicolás de Piérola, supreme head of the republic. Considering: First. That, the legal circulating medium being established by decree of this date, it is requisite to provide for the actual condition of the paper note of obligatory circulation, and likewise the means of redeeming the entire issue; Secondly. That, there not being a sufficient quantity of gold coin or silver soles in the market, to require debtors to the state to pay in coin would be to impose an impossible and extremely onerous obligation upon them; Thirdly. That the depreciation of paper money, as is consequent, having occurred successively and in different hands, to receive it in the fiscal offices for a greater value than its actual price in hard money in the market would be to benefit unjustifiably the present holders at the cost of the entire country; Fourthly. That, as it is already impossible to remedy the loss suffered by the people, it is necessary to put an end to it by preventing the further depreciation of the paper note, and to secure a fixed price for it at present, until it be redeemned; Fifthly. That, according to the duly-proved commercial fact, the price of the paper note is at present something less than 12 pence per sol; I decree: 1st. That the paper note of obligatory circulation be received in the offices of the state at a fixed price of 12 pence for every sol. 2d. That the issue of notes intrusted to the old committee of issue, to the amount of 60,000,000 soles, be closed, and all the superfluous notes in their possession, and the plates which have served to manufacture them, destroyed. 3d. That a monthly sum of fifteen thousand pounds sterling, which shall be entered in the general estimates, be set aside for the exclusive purpose of redeeming an equal amount in notes, effected by the fiscal committee, created by decree of this date, independently of the extraordinary redemption of same which the government may be enabled to effect. The secretary of state for finance and commerce is intrusted with the execution of this decree, and with its publication and circulation. Given in the government house in Lima this 14th day of January, 1880. MANUEL A. BARINAGA. N. DE PIEROLA. [Inclosure 6 in No. 106.-Translation.] The following two circulars referring to the war have been addressed to the representatives of friendly nations: CIRCULAR.] LIMA, January 14, 1830. Your excellency is aware that a question of limits, though twice decided, finally brought on war between Bolivia and Chili, which latter country finished by declaring war against Peru also, on account of her having formally expressed her intention of remaining faithful to the treaty of alliance adjusted with the former of the two countries, although at the same time, and in virtue of that very treaty, she was straining every effort to re-establish fraternal relations between the belligerents and preserve the equilibrium and peace of the continent. Chili, pretending to enforce an act of revindication in which she was herself both judge and plaintiff, had already, in a treacherous and violent manner, seized hold of the Antofagasta region, which had been adjudged to belong to Bolivia by two successive treaties, and subsequently occupied the entire Bolivian coast and opened hostilities on Peru without allowing herself to be detained in her course by any consideration of humanity for defenseless towns, or out of respect for the rights conceded by the laws of nations, or even out of consideration for the interests of neutral nations. Peru, reposing in fatal confidence and totally unprepared for a war which she never expected to be engaged in, was forced to sustain an unequal and disastrous naval campaign, in which the heroism she displayed is a sufficient recompense for the final glorious, but disastrous, result. Peru has likewise beeen similarly unfortunate on land, although one single day, the only one on which strictly speaking it can be said that a battle was properly fought, in spite of the superiority of the forces and elements opposed to her, was sufficient to enable the final result, which will not be long delayed, of the terrible duel to which this noble republic has been provoked, in spite of her generous desires and frank and honorable intentions, to be prophesied with the most complete certainty. Finally, the department of Tarapacá, which forms the southern boundary of the Peruvian territory, has been occupied by the Chilian army, and Peru will reply to this act in the only way which her honor and pride dictate. Chili, however, in the mean time, whose actions with respect to the territory temporarily occupied by her, should be limited to the exercise of the hostilities permitted by the law of nations, doubly violates it, attacking both the sovereignty and property of the republic. She arrogates the former to herself, imposing taxes on the nitrate industry of the department in question, the importance of which is notorious through out the world, and she assails the latter, appropriating to her own uses the portion of the nitrate riches belonging to the Peruvian fisc, exporting and selling saine in foreign markets. To these attacks on the dignity and property of the nation, Pern opposes the moral force of justice, and will employ it, as may be thought most convenient, aided by the material force at her disposition to rescue her property from the hands of her enemy or from those whoever may assist her in her work of plunder. And this is not a matter of a possible contingency in the future; for it is an actual fact that the saltpetre of Tarapacá, as well as that of the Bolivian coast, is being exported in neutral vee sels, without the aid of which Chili would be powerless to carry out her criminal intent. The flag of friendly nations cannot protect property of which Peru has been violently defrauded and over which she will exercise her due rights as far as her strength enables her. The good faith and considerations which Peru shows for her friends induce her to make the foregoing frank declaration, which I have the honor of communicating to your excellency on behalf of the new government which the republic now possesses. Begging your excellency to accept, &c., PEDRO JOSÉ CALDERON. [Inclosure 7 in No. 106.-Translation.] CIRCULAR.] LIMA, January 14, 1880. One of the first acts of the new government of Peru, which I have the houor tə represent in the department of foreign affairs, was to annul the decree issued by the former government establishing a commercial interdiction with Chili, This act proves the elevated spirit and the sentiments of justice and propriety which preside over its every resolution, and testify to its firm intention of lessening as far as possible, of reducing to the narrowest limits, the inconveniences and evils attendant upon a state of war. The enemy however does not appear to be animated with a like spirit, since not content with the flagrant violations of international law it has been guilty of whilst engaged in hostilities with Peru, and which have merited universal reprobation, Chili now pretends that the mere notification of the blockade of such ports, the closing of which she doubtless thinks will cause us the greatest damage, is sufficient for the efficaciousness of the blockade. Being powerless to close the entrance to the principal ports on our extensive coast by occupying said entrance with a sufficient force for that purpose, she is manifestly striving to introduce into the Pacific a system of paper blockades, which can never possibly be maintained as legitimate, and which none of the principal European powers would even think of at the present day. The right of neutrals to consider such a blockade as null and void of effect is manifestly plain, and to tolerate it or show the slightest respect for it, would be to encourage a pretension radically unsustainable, and which would become a scandal to the times we live in, were it to be supported in the slightest degree by those whom it most prejudices. As it is right that the true state of the case should be laid before our friends in a matter of such weighty importance, I feel certain that your excellency and your government will look upon this communication as another proof of the cordial sentiments with which Peru maintains her relations with I take this opportunity of assuring your excellency, &c., PEDRO JOSE CALDERON. No. 111.] No. 526. Mr. Christiancy to Mr. Evarts. LEGATION OF THE UNITED STATES, Lima, Peru, January 28, 1880. (Received February 25.) SIR: I have the honor to inclose to you a copy of my letter of the 25th instant to C. A. Nugent, esq., our consular agent at Arica, also a copy and translation of the letter of Admiral Montero, in command of the Peruvian forces at Arica, on the subject of the blockade of the port of Mollendo by Chili, dated the 9th instant. The whole substance of the reply of the consuls to the note of the admiral appears in my letter, of which copy is inclosed. I am, &c., I. P. CHRISTIANCY. [Inclosure 1 in No. 111.] Mr. Christiancy to Mr. Nugent. LEGATION OF THE UNITED STATES, SIR: Your letter (No. 2) of the 14th instant received, inclosing a copy of the letter of Admiral Montero, commander of the Peruvian forces at Arica, dated January 9, on the subject of the blockade, and the reply of the consular corps thereto, informing the admiral that the contents of his letter would be referred to the ministers of their respective countries. At this distance, with the uncertainty and irregularity of the mails, I can give you no specific advice applicable to the precise state of facts which may exist at any moment, as that state of facts may be changing from day to day. In fact I am informed here, through the British minister, that since the letter of Admiral Montero, another vessel has been added to the Chilian blockade squadron in front of Arica, and another to that blockading Mollendo. I can only lay down for your guidance some general principles recognized and insisted upon by the Government of the United States, as applicable to blockades, and leave you to apply them to cases of American vessels entering or seeking to enter the port claimed by Chilian authorities to be blockaded. No nation has taken stronger ground or more persistently maintained it against mere |