of the substance being arrested by the sudden solidification of the whole. We should thus have a solid with its different parts pulling against each other, or set in rigid grasp, or a state in which the opposite character and fluidity or mobility of particles would be excessively developed. This would be excessive solidity, or hardness and brittleness. The molecular strain must be still more severe in the case of a substance which goes on contracting as it approaches the temperature of solidification, and then suddenly expands as it assumes solidity. This is the case with iron." Repeating the heating process would relax the mutual grasp of particles in proportion to the development of that viscosity which is one of the characteristics of heated iron; and steel is tempered at a point approaching the "weldingheat" of iron.

CHILI (REPÚBLICA DE CHILE). To the general statements of area, territorial division, population, etc., given in preceding volumes,* it may here be added that the population on January 1, 1879, has been reported at 2,155,029. The President of the Republic is Señor Don Domingo Santa-María, inaugurated September 18, 1881, for the usual term of five years.

The Cabinet was composed, June, 1881, of the following ministers: Interior, Señor Recabarren; Foreign Affairs and Colonization, Señor Valderana; Finance, Señor Don J. Alfonso; Justice, Public Worship, and Public Instruction, Señor García de la Huerta; and War and the Navy, Señor Don J. F. Vergara.

General Baquedano, the distinguished commander-in-chief of the Chilian forces in the Chilo-Peruvian War, had been nominated as a candidate for the presidency, but withdrew his candidature. Señor Santa-María had the portfolio of Foreign Affairs in 1880.

The regulation strength of the army in time of peace was fixed by Congress, in 1875, at 3,573 men, deficiencies to be made up by conscription. The regular army, at the time of the latest returns before the commencement of the war with Peru and Bolivia, comprised 712 horse, 2,000 foot, and 804 artillery, with 749 officers of all arms; 7 generals, 14 colonels, 54 lieutenant-colonels, 67 majors, 182 captains, and 425 lieutenants; constituting a total of 3,516. The National Guard consisted of 1,215 horse, 21,147 foot, and 1,925 artillery; total, 24,287. But, on war being declared, the regular army was raised to a strength of 20,000, distributed in three divisions, and the National Guard to 30,000; thus forming a total land-force of 50,000. A single number of the "Official Gazette" was said to contain, in October, 1880, eleven decrees relating to the formation of as many new corps, with an aggregate of 20,000

men.

In an official report published in the second half of 1880, the navy was stated to comprise 11 ships of war, 12 transports, 3 pontoons, and 2 launches (torpedoes)-in all, 28 craft; with an * See "Annual Cyclopædia" for 1879.

aggregate of 20,107 tons, 5,459 horse-power, an armament of 83 pieces of cannon, 224 naval officers, and 1,686 seamen; besides six marine officers, commanding 389 marines. In the above number of vessels were included six mail-steamers chartered by the Government until the end of the war, and equipped by their

owners.

The

Touching the question of finances, the most reliable information at hand is that derived from President Pinto's message to the Chilian Congress under date of June 1, 1881. The revenue, ordinary and extraordinary, for the year 1880, was in that document set down at $43,992,584, and the expenditure at $43,123,829; the latter sum being only approximate, "inasmuch as, out of the extraordinary number of accounts arising from the war, it is but natural that many should still remain unsettled, the amount of which is not precisely known; as, for instance, the outlays made by the legation in France for military and naval supplies.' ordinary revenue for the year referred to stood at $27,992,584, while the total revenue, ordinary and extraordinary, for 1879, was but $27,693,087. It is true that in the revenue for 1880 was included the sum of $2,500,000 derived from an "accidental source "-the redemption of annuities; and the proceeds of the sales of nitrates, amounting to $4,000,000 up to October 2, 1880, after which time "this latter source of income was replaced by the export duty, which, besides being almost equal in amount, possesses the advantage of facility of collection without the inconveniences attending mercantile operations." The Tarapacá nitrates, just referred to, yielded considerable sums to the Government, for account of which they were worked until October 2, 1880, as stated above, the sales having been effected first by auction and afterward by British consignees. The working of the guano deposits having been retarded by scarcity of laborers, transactions in that commodity had been limited, the quantity exported up to June 1, 1880, not having exceeded 40,000 tons. The guano shipments were in accordance with the terms of the decree issued by the commander-inchief of the army on February 22, 1880. In conformity with the act of September 2, 1880, all the stocks of the monopoly office had been disposed of, and the offices established in its stead were working satisfactorily. As, however, these offices were of a temporary character, the President announced his intention of submitting a bill to Congress for their organization on a permanent basis. The issue office had emitted, up to the middle of May, 1881, $10,626,000, in exchange for a corresponding amount in treasury notes. The total value of notes issued, including the amount on hand, was estimated at $12,000,000, which, with $13,000,000 in bank-notes, constituted an aggregate of $25,000,000 in circulation: an amount of paper that might under ordinary circumstances appear to be excessive, but

which was, "in reality, hardly sufficient to meet the requirements of the service now performed by the Chilian paper money, not only at home, but in a considerable portion of the South Pacific coast." The Government was represented as holding, at the date of the message, a sufficient quantity of fiscal notes to replace the entire issue of treasury notes, which, though reduced by rather more than one-third, amounted to $26,000,000, of which $12,000,000, deposited in the national Treasury, were bearing interest at 5 per cent, pursuant to the terms of the law of August 19, 1880.

After stating that the custom-house yield for 1880 had exceeded that for 1879 by nearly $4,000,000, President Pinto remarks, as noteworthy, that such increase was owing to "new markets, and to increased production and consequent development of consumption.

"In the new territories successively occupied by our troops, custom-houses have been established with a view to make the war self-supporting, as far as the unhinged condition of affairs in those regions will permit. With the reduction of the national expenditure to the requirements of a normal situation, taking into consideration the gradual increase of the revenue, and the resources drawn from the conquered country, together with those to be derived from the ultimate permanent occupation of the Araucanian territory (which occupation renders urgent and indispensable the passage of the bill now before you relating to the ownership of the land in that territory), we have the encouraging conviction that the expenses of the war will be defrayed without further sacrifices. So far the Government has not found it necessary to make use of the bill recently passed for a new issue of $12,000,000, and I believe recourse thereto will not be required in the present month. Nevertheless, care and economy in new outlays are essential to the establishment of our finances on a sure foundation that shall enable us to redeem, at an early day, our paper money, and return to specie currency."

The expenses of the war, up to the middle of 1881, have been reported, on the authority of the Chilian Minister to Washington, at $60,000,000. Further particulars concerning the war debt and the means for paying it off were given in our volume for 1880 (article CHILI, p. 97, et seq.). Reference may be made to the same volume for a detailed statement of the several loans, etc., constituting the national debt of Chili, which debt was officially reported as follows, on January 1, 1880:

represented the exports. But in a later official report the exports were set down at $42,657,839, and the imports at $23,226,781: total, $65,884,620. It should here be remarked that in the latter total is included that of the exports and imports at the new port of entryAntofogasta -$5,464,991, and $432,173, respectively. Thus the value of the exports for 1879 exceeded that of the imports by $19,431,058, a result very largely contributed to by the splendid wheat-crop of the year in question. The quantity of wheat exported, mainly to Great Britain, in that year, was 142,182,985 kilogrammes.

The special trade of the republic in 1880 was of the total value of $81,404,539-exports, $51,083,810; imports, $30,320,729: balance of trade in favor of Chili, $19,763,081. Included in the exports were agricultural products of the total value of $11,661,067, against $12,781,394 for 1879; and minerals of the total value of $37,250,973, against $26,248,726 for 1879. The wheat-crop was exceptionally unfavorable in 1880.

The custom-house yield for the ten months of 1880 ending October 31st reached $7,594,891, against $6,845,731 for the whole of the year immediately preceding.

The value of the annual exports of copperthe great Chilian staple-to Great Britain, is estimated at from $12,500,000 to $15,000,000. The imports from Great Britain in 1880 were as follows:

According to the report of the Bureau of Statistics of the Treasury Department, the exports from the United States to Chili for the fiscal year 1879 amounted to $1,254,000, a decrease of $723,000 from the preceding year, while the imports from Chili into the United States during the same period amounted to $643,000, a decrease of only $20,000 from the preceding year. The trade of England with Chili during the year 1878 was as follows: Imports from Chili, $10,692,000, a decrease of nearly $12,000,000 from the imports of 1874, which occurred principally in copper, wheat, and flour. Exports to Chili, $6,000,000, a decrease of nearly $8,000,000 from the exports of 1874. As the decrease herein noted in the trade of England with Chili is confined to no single year, but runs consecutively through all the intervening years, it shows a steady decline in the trade between both countries. The exports to Chili from England are composed principally of the following articles: cotton manufactures, $2,466,000, a decrease from the cotton exports of 1874 of nearly $2,000,000, and of 20,000,000 yards; wearing apparel, arms, ammunition, bags and sacks, beer, ale, coal, earthen and china ware, glass-ware, leather and manufactures of, linens, jutes, machinery, metals and manufactures of, paints, woolens, etc.

The trade of France with Chili during the year 1878 was as follows: Imports from Chili, $3,000,000, about the same as the imports of 1874; exports to Chili, $3,500,000, a decrease of $4,000,000 from the exports during the year 1878, in the order of their value, were of 1874. The principal exports from France to Chili, as follows: Refined sugar, leather and manufactures of, woolen goods, cotton goods, mercery and buttons,

wearing apparel, wines, paper, pottery and glassware, fish, olive-oil, tools and implements, liquors, felt hats, medicines, jewelry, watches and clocks, etc. During the year 1877, according to the report above quoted, there entered at and cleared from Valparaiso 827 steamers, of 798,656 tons, 1,319 sailing-vessels, of 648,712 tons, a total of 2,146 vessels, of 1,447,368 tons. The United States was represented in this fleet by 68 sailing-vessels. Of the steamships, 36, of a tonnage of 126,000 tons, entered the port direct from Liverpool, via the Straits of Magellan. Herein lies the secret of England's large trade with South America.

The following extract from the official organ of the Chilian Government will be found to contain significant considerations on the commercial relations of Chili with the United States: From the data collected, systematically arranged, and published in the yearly reports of the Bureau of Commercial Statistics, it appears that Chili imported from the United States in 1856 assorted merchandise to the amount of $2,439,153, and in return exported her own agricultural and mining products to the markets of the United States to the amount of $3,090,899. Our business thus, in that year, with the great republic aggregated the respectable sum of $5,530,052, an amount certainly greater than its commerce with any of the other republics of this continent. Nevertheless, in the course of twenty-four years only, this condition of things has totally changed, to the great detriment of both nations. While the commerce between Colombia and the United States reaches the sum of a little over $7,000,000 per annum, and with Venezuela exceeds $11,000,000; while her commercial relations with the far-off Argentine Republic and the petty republies of Central America are every day assuming greater importance, our commercial statistics hardly make any record of trade, and this record only shows a trifling amount of the commerce between Chili and the United States, which in other times was so active and profitable. The decline is shown by the following official figures: In 1860 importations from the United States had fallen from $2,500,000 to $1,085,000 in round numbers. Three years later, our exports of copper and ores still amounted to $1,250,000, while the imports of American products amounted to about the same sum. In 1868 the decrease was still more noticeable: our exports scarcely reached half a million, or $400,000 less than in 1844, in which year the United States were purchasers from us to the amount of $956,052. From 1874 to 1878 trade continued in the same depressed condition, and it is but reasonable to suppose that the fluctuations in exchange, and difficulties in obtaining exchange, will have, during the course of 1879 and the present year, still further reduced the figures representing the commercial intercourse of the two peoples. In the tables of commercial statistics, which we may properly call a journal of our progress, the total of the trade between Chili and the United States, during a term of twenty-two years, from 1844, is set down at the respectable sum of $88,730,000; what will be the insignificance of the total for an equal period of time reckoned from 1866 may be easily calculated from the data we have already given, and it is no rash assertion to say that, if the causes which have led to this decay be not considered and some remedy applied, the day will soon come when trade between Chili and the United States will be but a sad reminiscence of our commercial statistics. It is but proper to add, in support of our observations on this decay, that the same is observable with other countries, the Argentine Republic, Ecuador, and Colombia, with which, at a period not very remote, and under circumstances much less favorable for developing and increasing trade, our own country had an active and mutually advantageous commerce. The causes that, within the last twenty-four years, have led to this extraordinary decay in the commerce of Chili with the United States are apparent.

The astonishing development of the agricultural interests in the old mining regions of California, together with the fact that there, on rich and virgin soil, scientifically cultivated, are produced the saine articles raised by us here on worn-out soils, imperfectly cultivated without the aid of fertilizers, constitutes the first and most conclusive of such causes. Not only have our cereals been driven out of the advantageous markets of California, but by the products of this same California they have been supplanted in other markets, which, but a short time since, were our own. United States flour to-day finds its way to Central America, Panama, Ecuador, and occasionally has reached even our own country to supply the deficit created by bad crops, unwise commercial calculations, or our imperfect methods of planting and gathering our crops. It is not singular that in San Francisco Chili flour should be no longer used, inasmuch as that essentially agricultural land produces wheat with such wonderful profusion; but it is very singular that the wheat of California, which is, as it were, but of yesterday, should have absolutely driven Chilian wheat, of long standing and high repute, out of all the markets of the Pacific coast. Our inability to enter into competition with it indicates the existence of questions to be resolved with regard to low rates of interest, the use of agricultural implements in planting, of fertilizers, and means of transportation. These questions must be considered in the light of the requirements of our agricultural interests. If, however, there are reasons why California, so far from buying wheat from us, brings her own extraordinary production of this article into competition with our own, such reasons totally fail when we come to consider other articles which, twenty-five years ago, we exported to the markets of the United States, and to a very considerable extent. Why is it, then, that the United States are no longer purchasers of our copper? Why is it that they have ceased to work up our wool? In 1866 we exported to the United States $1,000,000 worth of these two articles; in 1862, $1,943,429; and in 1863, still $823,600. This trade, far from tending toward an increase, seems to be on the verge of disappearing. Is it, then, because the United States produce all the copper they require in their manufactures and shipbuilding? Most certainly not, if we are to believe their own statistics and the reports of some of the branches of their manufactures. The yield of copper in the United States is not sufficient for their consumption, and it is necessary to import from England part of that which England receives from Chili. As may be naturally supposed, this reaches the hands of the consumer in the United States with an addition of the charges for the increased freights, expenses, and profits of the first purchaser. The same, or something very nearly so, though perhaps on a smaller scale, occurs with regard to our wool. All this is due to the protective, or rather prohibitory, tariff which the Government of the United States have put in force, more particularly since 1863, when they were called upon to meet the expenses of their tremendous war of secession.

Commerce is nothing more than an interchange of products; and in order that we may become consumers of the manufactures of America, it is indispensable that our products should have easy access to the markets of that country. Drawing against England, as has been the case up to the present time, it is not probable that we shall be purchasers to any great extent of the goods offered to us. Upon such a basis of trade, and however advantageous the prices might be, it would be impossible for them to compete with similar productions from other countries. England, which buy's our copper and wool, can always sell us her cutlery and hardware on advantageous terms, for financial reasons that from their obviousness it is not necessary here to state. It is not, then, through the means of education pursued by the State, or the intelligence of the American manufacturer, that the problem of establishing extensive commercial relations between

the two countries is to be solved. Let the manufacturers begin by making their own markets accessible, and asserting the principle of free interchange, without which unlimited production is simply ruinous. Let them seek to exchange for our copper and wool upon equitable terms, as in former times; then may they certainly reckon upon us as permanent consumers of their products. We will pay them for their machinery, hardware, and dry goods with our wool, niter, and copper. Efforts to augment the various agricultural and manufactured products of a country within the natural limits imposed by soil, climate, geographical position, and the grade of civilization enjoyed, are always laudable.

The attitude assumed by the Chilian Government toward the holders of Peruvian bonds was alluded to in detail in our volume for 1879. The following extracts from the London "Times" and from a British financial journal will throw the necessary light upon that question as it stood in the summer of 1881. It may be added that, down to the end of that year, little hope was entertained by the most sanguine of an early dividend. The net proceeds of thirteen cargoes sold on account of the Chilian Government, and to be applied in favor of the bondholders, was reported by the London consignees to amount to but £17,828 108.! The total claim represented by bonds is £32,000,000.

With regard to the reports in the market to the effect that the Chilian Government are going to assume the burden of the Peruvian debt at a smaller rate of interest, the truth appears to be that some large bondholders here, seeing that the committee are practically impotent and that some other combination must be formed to protect the bondholders, have made a proposal to the Chilian minister to accept what, in fact, is a composition, the bondholders agreeing in return to renounce all their rights. The Chilian minister, we believe, is inclined to listen to the posal, whatever it may be, but nothing can be done now respecting it without conferring with Messrs. A. Gibbs and Sons, with whom communications have been opened. In any case the Chilian Government are not likely to agree to any arrangement which would cause them loss, which would probably be the result of their promising to pay £2 per cent on the Peruvian debt. The most favorable estimate by the best judges is that there will not be a net revenue from the guano sales of more than one per cent on the total amount of the Peruvian debt, and the realization of even that amount depends upon the possibility of obtaining sufficient guano of a marketable quality. On this head very considerable doubts are entertained. There has been a great deal of excitement in Peruvian bonds on the circulation of various rumors which seem to be mostly devoid of authority. It is eminently improbable that the Chilian Government will adopt the course which some ardent admirers of its generosity have been suggesting. There is no reason that we can see why Chili should take upon her the Peruvian debt, and guarantee two, or any, per cent to the bondholders. She does all she can fairly be expected to do when she gives the bondholders access to the property hypothecated to them in security for the foreign debt of Peru. Sanguine views have, however, been in the ascendant, and the price of the bonds has had a substantial rise. There is this much to be said in their favor, that even at one per cent (if it were sure) the bonds would be cheap at their present market quotations. Calculating on the basis of the vessels chartered and loading, on their way or arrived, allowing for only twenty more ships during the rest of the year, nearly two per cent on the loan

vote.

would, it is said, be within sight. There is, we agree with a correspondent of a contemporary, something more tangible in the prospect here than we have at present with the Turks. But no progress-we would remind this correspondent and other critics-is likely to be made by indulging in mere abuse of the committee of Peruvian bondholders. The letter from that body, which we publish elsewhere, proves their anxiety to have done with controversies and wrangling with the Chilian Government or any one else. But it is mere fatuity to call in question the credentials of the committee, or to speak of them as "impotent." Never was a committee appointed by a more indubitable Out of a total of £32,000,000 bonds no less than £26,000,000 were registered or deposited, and 21,000,000 were voted on. The fact that the bondholders paid the assessment on their bonds sufficiently matter, and how little foundation there is for the atdemonstrates how much they were in earnest in the tempt to discredit their committee on the authority of anonymous "large" bondholders. If there was any pressure put on the bondholders to deposit their bonds caused it to be announced that their not registering or and vote, it was applied by the Chilian minister, who depositing would deprive them of their right to participate in the proceeds of the sales of the guano. The attacks on the committee are baseless clamors.

The subjoined additional extract from the message read by President Pinto at the opening of the Chilian Congress on June 1, 1881, will serve to complete the sketch of affairs in that country in that year:

FELLOW-CITIZENS OF THE SENATE AND CHAMBER OF DEPUTIES: It affords me pleasure to be able to inform you that our relations with friendly powers are on a footing of perfect cordiality.

*

A slight modification which circumstances appeared to me to warrant has taken place in cur relations with Spain. You are aware of the eagerness with which Peru and Bolivia hastened to sign a treaty of peace with Spain, in the belief that by this means they would be able to obtain warlike elements to use against us. The Peninsular Government, after entering into a treaty of peace with our enemies, maintained, however, the strictest neutrality, not withstanding that the truce with Chili subsisted and still subsists. In conformity with this lofty policy, it ever showed itself disposed to deny to our enemies all favors which it could not grant to us also. These antecedents, added to the friendly attitude assumed by the Spanish community at Iquique on a sad occasion, induced me to think that it would be proper to show that, on our part, we were not insensible to these conciliatory actions. Believing, therefore, that I faithfully interpreted public feeling in the matter, I issued the decree of January 31st last, opening our ports to Spanish vessels. In conformity with the law of January 12th of last year, which empowered me to give in the adhesion of Chili to the Postal Union, I applied, diplomatically, to the Swiss Federal Council for the incorporation of our country into that convention from the first of April of this year.

While devoting, as you may suppose, particular attention to the requirements of the war in which we are engaged, the different branches of the public service have not been neglected.

The advancement of our frontier, both north and south, has rendered necessary the creation of new provinces and departments, and several bills having this object in view will shortly be submitted to you.

The public roads have been duly attended to with the sums provided for in the estimates, and with private donations. I have issued decrees giving to the inhabitants of provinces some participation in road affairs, which will have the effect of improving the

*A treaty of peace between Chili and Spain, after fifteen years interruption, was concluded in 1881.

management of those matters, and will be a guarantee for the legitimate outlay of the money expended on

them.

Important improvements have been carried out on the existing lines of telegraph for the purpose of affording greater facility for communication."

The prolongation of the line of telegraph to Ancud is being actively pushed on, and in a few days more the forts lately constructed in Arauco will be connected with the rest of the republic by telegraph.

In conformity with the provisions of the act of Jan uary 14th of the present year, surveys are being made for the plans and estimates of a railway from Angol to the province of Valdivia, and at an early date I shall apply for power to commence work on the first section of that line.

A bill, framed by the committee charged with the revision of the civil code of procedure, providing for the resort of cassation, will be laid before you.

The Council of Education is discharging its labors with commendable zeal, and it has submitted to the government plans of studies for the course of "humanities" and mathematics, and a plan of examinations for use in superior and secondary educational establishments.

Notwithstanding that during last year the war attained its greatest spread and developinent, trade has continued its regular and progressive course. The circumstance of our having been able to carry military operations into the enemies' territory from the very commencement of hostilities, thanks to our naval superiority, a fact worthy of being remembered in everything relating to the security and future of the republic, has, by maintaining open their sphere of action, been the cause of trade and industry having been free from uncertainties and fears which would have paralyzed or hindered their progress. On the contrary, the war itself, by its constant successes, has opened up new fields to enterprise by the conquest of extensive territories which have been sources of revenue to the state, and of labor and wealth for private individuals. (For treaty of limits, see ARGENtine RepubLIC; and for narrative of the war, PERU.)

CHILI, PERU, AND THE UNITED STATES. (See PERU, CHILI, AND THE UNITED STATES.)

CHINA, an empire in Asia. Emperor, Kwang-Su, formerly called Tsaeteen, born in 1872, a son of Prince Ch'un, and grandson to the Emperor Tau-Kwang, who died in 1850; he succeeded to the throne in 1875.

The area and population of the provinces of the empire were estimated as follows in 1880: