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CHAPTER XII.

Chile.-Blanco's resignation-Chilian finances-Resignation of president Freire-Of vice-president Pinto--The latter not accepted--Pinto's installation- War in the southern provinces-Constitution of Chile-Proceedings of the provincial assemblies—Arguments of the federal party—— Arguments of the centralists-State of parties-The present government.

Ar the last advices CHILE con- demanded for meeting the urgent tinued in an unsettled condition. and daily necessities of the state, Our account of this country for which have been a source of un1826 closed with the choice of D. . ceasing perplexity to the governManuel Blanco Encalada as pro- ment from the first moment of its visional, and the vote of congress installation. What has been the resolving to organize the republic state of the public treasury, from according to the federal system. that period to this, will sufficiently But ere two months had expired, appear from the repeated representhe chief magistrate retired from tations made by the executive to his office in disgust, assigning the congress. It is, therefore, quite distracted state of affairs, and the nugatory again to allude to the lainveteracy of the factions which mentable appearance it presents, agitated the country, as the causes and which has been already subof his resignation. In the course mitted to the consideration of the of his address he said: representatives, without ever producing the effects that might reasonably be expected, and which were equally demanded by necessity, reason, and sound policy.

"I had hoped that congress, sensibly alive to the critical posi. tion of affairs, and the exhausted state of the treasury, would lend their active co-operation, and unite "The cause that has induced me in perfect harmony with the execu- to adopt the resolution of tendering tive, for the purpose of calling in my resignation, is the alienation to action those indispensable re- and neglect manifested by all par. sources that were so imperiously ties towards the executive power,

which has been left to the mercy of public opinion, without aid or hope, to steer its course amidst a thousand hidden rocks, which must ultimately be its destruction. Some other individual, more fortunate than he who addresses you, or more experienced in the science of making nothing out of something, may succeed one, whose unhappy fate it has been to struggle with insuperable difficulties; at one time to oppose dangerous innovations, at another to discountenance the most absurd and inexplicable theories; now to foil the intrigues of party, now to calm the ardour of passions neither elevated nor generous.'

This it must be confessed, is a melancholy picture of confusion and disorder. Indeed the pecunia. ry embarrassments of the government of Chile seem to fall but little short of those, which oppress the other republics of the south. They seem to be wholly unacquainted with the principles of finance; and instead of adopting decisive mea. sures for permanently arranging their revenues, so as eventually to obtain relief from the debts with which the war of the revolution left them encumbered, they have recourse to temporary expedients and improvident shifts, which only serve to plunge them deeper and deeper in misfortune. The mode provided by Chile for paying the Chilian bondholders in London, fairly illus. trates the mischievous nature of

their financial system. In order to meet the interest punctually as it became due, the government conveyed to a mercantile company the monopoly of certain articles of general consumption, in considera. tion of which the company undertook to discharge the interest of the national debt regularly as it accrued. It would not have been easy to maintain such a monopoly in Chile, even under the Spanish system of administration; but the difficulties attending it were aug. mented in a tenfold degree, under a government, which relied altogether upon its popularity in the public opinion for its very exis. tence. The consequence it is easy to imagine. In the hands of the government, the monopoly would have been odious; in the hands of a body of private speculators it was likely to prove intolerable. Hence the company, beginning to apprehend they should derive no gain from their present bargain, declared that they could not discharge the interest of the debt, unless the government should grant a large extension of their exclusive privilege. And as the executive dared not comply with this demand, the Chilian bondholders re. mained unpaid, like the creditors of Peru and Colombia.

Notwithstanding the prostration of the public credit abroad, the proceedings connected with the new organization of the executive would

seem to show, that the members of the legislative body had not desisted from the improvident course of conduct, of which admiral Blanco so bitterly complained. Instead of a supreme director, in whom the executive power had formerly been vested, the Chilians adopted the style of president and vice president, in imitation of the United States, the great model of the new republican governments. D. Ramon Freire, the ex-director, was chosen president, and general Francisco A. Pinto, vice president. While the congress were engaged in discussing the provisions of the projected constitution, it became necessary to instal the chief magistrate; and the discussions were suspended for a while, by reason of Freire's renunciation of the presidency of the republic. The renunciation was received and read in the session of May 2d, 1827, and referred to the committee of government, to consider and report thereon. On the 4th, they made a report, which being deemed unsatisfactory, was recommitted by congress, with instructions to report in a more specific manner. This committee re. ported once more on the 5th, in favour of accepting the renunciation. After some discussion, it was voted, 1. to accept the renunciation of the president; 2. that the vice president should perform his duties, according to law; 3. that the president of the legislative body should

signify to general Freire the sèntiments of regret felt by the national representation, at the termination of his supreme command, which he had discharged so greatly to the public satisfaction. The votes were communicated to him, with a request, that he would continue to exercise the supreme authority, until it was regularly committed to the vice president; and at the same time, a communication was made to the latter, announcing to him, that he was called upon by law, to fill the office vacated in consequence of the president's resignation being accepted by congress.

On the 7th, a note was received from general Pinto, resigning his office of vice president of the republic, and soliciting congress to accept his resignation. This being referred to the committee of government, they reported a set of resolutions, which were adopted without debate, as follows: "1. The resignation of the president of the republic being accepted, his duties devolved by law upon the vice pre. sident elect; and the reason as. signed by him for resigning, be. cause the country is destitute of any laws, is considered insufficient; because congress ought to enact opportune laws as occasion requires, to facilitate the march of government; this body, hoping that he will propose them by virtue of the initiative conferred on the execu.

tive power; and therefore the resignation tendered, is not accepted. 2. The president of the house, (Elizonde) will communicate these resolutions to the vice president of the republic, inviting him to repair to the hall immediately, and take the oath of qualification. Upon receiving this communication, Pinto replied, that he submitted to the wishes of the national representation; but prayed that his instal. lation might be defered until the next day, in consequence of his being indisposed. The report of the proceedings mentions, without any expression of disapprobation, that the spectators, who had attended the bar of the house in great numbers on this occasion, testified their applause, by loud clapping of hands, and other signs of gratulation.

Accordingly, on the next day, the 8th of May, general Pinto was introduced into the hall of sitting by a committee of four of the deputies, appointed for that purpose. He took the oath of office immediately, and was belted with the three coloured band, which is the distinctive ornament of the chief magistrate of Chile. Seating himself then, at the left of the presiding officer, he pronounced the following address:

"Gentlemen:-In binding around me this belt, I feel that I am assuming obligations of transcendant importance. Aware of the burden

it imposes, I could only hope to sustain it by counting, as from this moment I confidently do, upon the assistance of your councils, to enable me to satisfy the just demands of the people. So soon as they have ceased to be occupied by the war of independence, they have turned all their attention to considering the means of assuring their social existence. Hence that inquietude, misinterpreted by some, but which, subjected to rigorous scrutiny, will be found to proceed only from the want of laws, or from the contrariety between those which have been enacted, and the old colonial regulations. In your hands, the destiny of the people is placed, and the republic and the government expects every thing from the wisdom and purity of congress."

To this brief address, the president, Elizonde, replied in a discourse suited to the occasion. The new organization of the government was afterwards completed by the nomination of D. Jose Miguel Solar to be minister of the interior, and of foreign relations; D. Ven. tura Blanco Encalada, of the treasury; and D. Jose Manuel Borgoño, of war and marine; all which nominations were nominations were confirmed by congress.

Chile was free from any appre hension of hostilities on the part of Spain, and remained on perfectly amicable terms with the other

states of America. Indeed, the overthrow of Bolivar's Peruvian constitution, while it relieved the Chilians from unceasing anxiety respecting their dangerous neighbour, induced them, for that reason, to unite more closely with the new government of Peru. So long as Bolivar continued at Lima, Chile was the refuge of the discontented Peruvians, and could not feel secure for a moment from the ambi. tious designs of Bolivar, who, "in concert with the ex-director O'Hig. gins, had once occasioned a revolt in Chiloe, and although finally unsuccessful in that attempt, proba. bly had not abandoned his original purpose. But while delivered from immediate fear in that quarter, Chile was still subject to the incursions of the Indians in the southern extremity of the republic. The savages were led by Mariloan, Pincheira, and other relics of the royalist party, who, when the republicans obtained the control of Chile, took refuge among the independent tribes in the south, and maintained themselves by a system of robbery and pillage, which they dignified with the name of war. But they were so hard pressed by the Chilian forces, that several of the leading Spanish refugees were making overtures of accommodation, weary of living a life of hardship and privation among their savage companions.

The great subject which has agi. tated the Chilians during the period under consideration, has been the question concerning the nature of their government,--whether it should be modelled upon the central or the federal system. Warmly attached as we are to the admira. ble form of government enjoyed in the United States, the best adapt. ed, we conceive, to the circumstances of our country, which the art of man could devise,—still we cannot avoid being impressed with the forcible reasoning of those who oppose its establishment in Chile. As the topic is curious and interesting, we conclude our account of Chile with a statement of the discussions which it has awakened there. When the congress of 1826 decreed to frame the constitution according to the federal system, as incident thereto, they established provincial assemblies in the great sections of the republic, whose business it should be to ratify the constitution, to be proposed by congress to them as the immediate representatives of the people. But these very assemblies, by usurping authority which does not belong to them, and by interposing before-. hand in the discussion of the constitution, have done much to defeat the whole object.

The assembly of Concepcion met late in the year 1826, and one of the first acts of the body, imme

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