leaders, committed suicide. The Government was prepared to grant an amnesty to those who had held military rank before the war. It proposed to keep General Galvio in the province in order to enforce its terms, and refused to remove the Governor Castilhos. The insurgents were maintaining their organisation, and declined to accept any conditional amnesty.

The Brazilian Congress convened at Rio de Janeiro on May 4. The President's message advised the reorganisation of the National Guard, and advocated encouragement to immigration and reform in taxation. The Minister of Finance, in his Budget statement, estimated the receipts at 300,884 contos of reis, and the expenditures at 296,028 contos. He indicated the necessity of an income tax and a duty on alcohol.

British shipowners at Rio de Janeiro having complained that cattle ships were detained in quarantine without being furnished with supplies, and that this was causing great distress and an epidemic among the crews, the British Minister at Rio addressed a note to the Brazilian Government insisting on better quarantine regulations.

A new internal 5 per cent. loan in currency of 100,000 contos was floated in March; one-fourth was to be devoted to the redemption of currency. The applications for the loan amounted to nearly 120,000 contos.

The uninhabited rocky islet, some 700 miles to the east of Rio, called Trinidad, was formally annexed by her Majesty's ship Barracouta in January. The gunner of the ship was appointed governor and the surgeon medical officer.

In the Brazilian Chamber of Deputies in August, when the Government laid before them documents on this subject, some excited speeches were delivered insisting upon the rights of Brazil to this little island. General Belisario said: "When all diplomatic means have been exhausted, this people, obeying the irresistible calls of patriotism, will rise and tear away the paws of the British lion from this piece of territory which is sacred to Brazil." Some slight demonstrations were made in Rio and in the provinces about the affair, but the excitement gradually subsided, and in November the British proposal for arbitration with reference to Trinidad was formally presented to the Brazilian Government.

On the borders of French Guiana and Brazil a serious conflict took place on contested territory at Mapa. A Brazilian named Cabral had arrested and robbed a French trader named Trajane. To punish him the Governor of French Guiana, without authority from the French Colonial Office, sent an expedition into this debatable land, in May, which was unsuccessful. Its leader, Captain Lunier, and several marines of the gunboat Bengali were killed, and of Cabral's men sixty were killed and a great number were wounded. Cabral himself was still at large. The French Government asked the Brazilian Government to take measures to settle the question of the contested territory, and

both agreed to arrange the boundary line by arbitration to prevent any further conflicts.

Bolivia.-Because of the invasion of Bolivian territory by a Peruvian army of 2,000 during their recent civil war, the Bolivian Government sent an ultimatum to Peru and demanded satisfaction. Peru was called upon to reply within twenty-four hours, but nothing happened.

The dry air of Bolivia is a cure for consumption, highly recommended by those who have resided in the country. It is said that patients in the first or second stage of the disease are completely cured after a short sojourn in the regions of La Paz or Oruro.

Chili. Notwithstanding many rumours to the contrary, the relations between the Argentine Republic and Chili remained friendly, and there was no reason to think that a war was impending between the two countries. Any misunderstanding which might occur over the boundary question was to be settled, according to treaty, by arbitration. Operations for the boundary settlement were resumed November 15.

A scheme for the conversion of the paper currency to a gold coinage at the rate of 18d. per dollar came nominally into effect (June 1), and, after seventeen years of forced paper money, Chili returned to the gold system. The National Congress was opened at Santiago (June 1) by President Montt, who delivered his message, giving the following statements as to the condition of affairs.

Chili's relations with foreign countries continued to be perfectly cordial. No difficulty had arisen with the Argentine Republic over the demarcation of the boundary. A treaty with Bolivia of peace and commerce had been signed, and the question of Tacna and Arica would be settled as soon as the new government of Peru was established. The national revenue in 1895 was estimated to amount to $87,900,000 (in Chilian legal money 18d. to the dollar), and the expenditure to $78,500,000. For 1896 the estimated revenue was $87,600,000, and the expenditure $74,100,000, giving an estimated surplus of $13,500,000. The total import and export of goods amounted to $267,000,000, the exports exceeding imports by $37,000,000. Imports showed a decrease of one-fifth, and the estimated production of nitrate for 1895 was 26,000,000 quintals. More than half of the total revenue is obtained from the export duty on nitrate.

A new Ministry was formed in August through the union of all branches of the Liberal party with Señor Recabarren as Premier and Minister of the Interior, but in October several of the ministers refused to support the Minister of Finance, and sent in their resignations. The enemies of the Conversion law were asserting that the measure had proved a failure, but as there was plenty of gold to meet the notes there seemed to be no ground for fear. In November a new Cabinet was appointed of the

friends of the President, as no political party was strong enough to form a Cabinet. The issue of a new loan of 4,000,000l. was sanctioned by the House of Representatives in December.

Columbia. Placards were posted in Colon in January threatening the burning of the city if wages were not raised in proportion to the cost of living, and the Government feared a revolt. The rebels took up arms in February, and in an engagement with the Columbian troops at Bogota, the capital, the fighting was severe and the killed numbered 200. The rebel General Salmiento surrendered at Tolima with 1,500 men. The insurgents claimed a victory over the Government forces at Cucuta, early in March, but on the 15th at Ensiso they were routed with great loss and many of the rebels surrendered.

Ecuador.-A revolution in Ecuador ended (August 27) with the triumph of General Alfaro, the leader of the insurgents. He defeated Generals Sarasti and Vegae, captured Quito, and the citizens declared for him. There was a severe battle fought at Cuenca, in which many were killed on both sides.

British Guiana.-The gold exported in 1895 from British Guiana amounted to 122,023 oz., valued at $2,165,712. In the preceding year there was a rather larger yield. Sugar had long been considered as the staple production of the country, but gold mining was rapidly becoming the leading industry. In 1884 the yield of gold was but 250 oz., valued at 1,0197. The interior is little known, and the climate there is supposed to be unhealthy.

The settlement of the boundary question with Venezuela was urgently needed to facilitate the development of the Colony. Vast upland regions remained unexplored, prolific in every resource and condition of tropical cultivation. In December Sir Augustus Hemming was appointed Governor in succession to Sir C. Cameron Lees.

Peru. The civil war continued, and the insurgents under General Pierola having laid siege to Lima, the city was hastily fortified in February by the Government party under President Caceres. The rebels succeeded in getting into Lima, after a severe battle at Cabanillas, where the Government troops were worsted, and on March 17 and 18 the combatants were fighting in the streets of Lima. The number of killed and wounded during the two days' fighting was very great, although the opposing armies numbered together less than 8,000 men. The Government troops lost heavily owing to the hostility of the people, who fired on them from the housetops. Many shops and warehouses were sacked and their contents destroyed. A truce was finally arranged, and both leaders agreed to retire from the capital. The number of dead and wounded was said to be more than 2,000. General Pierola resigned the command of his army, and placed his troops at the disposal of a Provisional Government, which included Señors Candamo, Bustamente, Espinosa, and others. President Caceres took refuge on board a French man

of-war in Callao. All political prisoners were set at liberty, and measures were taken to disband the forces of General Caceres's Government. The import duties imposed by the late Government on coal, iron, and machinery, as well as export duties on cotton, sugar, tobacco, and other articles were repealed by the Provisional Government, and the articles declared free.

A presidential election was held in July, and Don Nicola Pierola was chosen President of Peru.

The relations between Congress and the President and his Cabinet were not cordial in November. The deputies in Congress proposed reforms respecting convent revenues which did not meet the views of the Clerical party. A number of the latter assembled outside the House and attacked the deputies as they were coming out. Thereupon Congress censured the Government for not affording sufficient protection to members of the House. In December a new Cabinet was formed, with Señor Barrinaja as Premier and Minister of Justice, and Señor Oritz Zevallos as Minister of Foreign Affairs.

Uruguay. In January a Brazilian force pursuing insurgents from the Rio Grande province crossed the frontier and had a serious collision with Uruguayan troops, who opposed their advance.

Congress met at Montevideo in February. The President urged the necessity of an immediate settlement of the claims on the judicial deposits at the National Bank in liquidation, and stated that a bill for this purpose would be brought in without delay. This project referred to an internal loan of about $4,000,000.

Brazil was asking in February for the settlement of a debt due to her for advances made to Uruguay during the Paraguay war and the civil war of 1851. A special envoy was sent to Brazil to endeavour to arrange this debt, which, with accumulated interest, amounted to about two millions sterling.

President Borda vetoed a bill in April limiting his power to make contracts to his term of office, but Congress passed it over his veto by thirty-seven votes to seventeen.

In July Congress voted $2,000,000 for increasing the army, the money to be raised by fresh taxation. This step was taken in view of alleged difficulties between Chili and the Argentine Republic.

A new bank was proposed in December, and it was stated that capitalists in London would subscribe a loan of 1,000,0001. for it the loan to carry 5 or 6 per cent. interest, with 1 per cent. accumulative amortisation, and to be guaranteed by 51⁄2 per cent. of the Custom House receipts to be deposited daily. It was feared that the new loan would be entirely misapplied, and would be employed to help the Government ring, although, in the language used with regard to it, it was to be employed in helping the true interests of the country.

Venezuela.-The long unsettled question of the boundary

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Some

line between British Guiana and Venezuela came to a crisis this year through an incident which happened in January. twenty Venezuelan troops crossed the Cuyuni River, which is a part of the Schomburgk line, and hoisted their flag on territory proclaimed in 1886 as definitely British. When the British outpost of two commissioned officers and about a dozen privates of the Colonial police removed this flag under orders they were arrested by the Venezuelan force, and taken into Venezuelan territory. Afterwards the British Government officer of the Uruan district, where the outrage occurred, went to the place with a relief expedition to make full investigation. No apology for the outrage was forthcoming, nor for the firing on the British schooner Ellen by a Venezuelan gunboat on July 29, and after many months of waiting, Lord Salisbury sent in October a note of the nature of an ultimatum to the Republic through the representative of Germany at Caracas, diplomatic relations having long been broken off between Great Britain and Venezuela, and that way for a friendly settlement being closed. Thereupon Venezuela appealed to the United States and to the Monroe doctrine, confusing the frontier question with the outrages on the British flag, and the wanton arrest of British subjects. Since 1821 there had been no less than forty-five risings against the central authorities in Venezuela, nine of which proved successful. Dr. Rojas Paul attempted one this year, but it was crushed in a fortnight. In this State, with a Republican form of government, the right of franchise is practically unknown. There is never a general public election, and the President was virtually a dictator, although chosen by a Congress. By the Constitution his term is now limited to two years, nor can he succeed himself. President Joaquin Crespo

was credited with wealth estimated at $15,000,000.

The gold mining industry has fallen off since 1890. In 1890 the value of gold exported was 349,2347. In 1894 it was 180,000l. Most of the gold mining is alluvial, but payable quartz is to be found in certain districts. Coffee is the main staple, but the constant recurrence of revolutions deters European capitalists from taking the risks of growing it, for the labourers are liable to be drawn away at any time to serve as soldiers on the Government or the rebel side.

CHAPTER VIII.

AUSTRALASIA.

THE movement for the Federation of the Australasian Colonies, though from time to time the subject of discussion by the local Governments, cannot be said to have greatly advanced in the year 1895. Although the Colonies have, each individually,