manding at Canudos in Bahia. A fresh Government army of 7,000 men was more successful, but three attacks of the national troops were repulsed by the fanatics before the disturbance was quieted. Conselheiro claimed to work miracles and received divine homage from his followers.

In October the commercial situation in Rio de Janeiro was becoming more difficult. The Government finances were in a critical condition owing to a great falling off of revenue.

On November 5, a soldier endeavoured to shoot President Moraes with a pistol, just as he had landed at the Marine Arsenal after visiting the steamer on which General Barbosa had returned from Bahia. The attempt was happily frustrated by the bystanders. In disarming the soldier the President's nephew, Colonel Moraes, was slightly wounded. The Minister of War, General Bittencour, then interfered, and was himself stabbed so seriously that he died soon afterwards.

A bill authorising the proclamation of martial law passed the Brazilian Congress, and the President at once issued a decree proclaiming martial law for thirty days. A number of deputies and others were arrested-some of them while endeavouring to escape from the country, and there was evidence of a political conspiracy to seize the Government.

The session of Congress in Rio de Janeiro was closed on December 10. The Revenue Bill showed a deficit of nearly 30,000,000 milreis.

A bill passed introducing fresh changes in the tariff, which it was feared would be highly prejudicial to commerce.

Chili.-Elections held in March helped the Democrats, while the Conservatives and Radicals lost in numbers.

The President opened the Congress on June 1. He estimated the expenditure for 1897 would be $82,000,000, and the revenue $76,000,000. The Estimates for 1898 were $79,700,000 for revenue, and $79,100,000 for expenditure. The Ministry resigned in June, the next Ministry resigned in August, and the Liberal Ministry that succeeded resigned December 15. Then a Ministry which was expected to last, as it commanded a large majority in Congress, and consisting of two Errazurists, two Conservatives and two Balmacedists, was formed. The imports of Chili last year were in value 11,729,7777., and the exports 11,773,5741.

Nitrate, which had been regarded as an inexhaustible source of wealth, was losing its popularity, because artificial substitutes were taking its place as fertilisers. There was a large decrease in the export duties of nitrate in August, but in December the estimated export of nitrate for the year ending March, 1898, was expected to be 1,250,000 tons. Production, however, much exceeded consumption.

Peru.-Several men were killed in a police outbreak at Puno in February. The public helped the Government to arrest the ringleaders.

Silver coinage was suspended by the Government in April, and silver coin could only be imported as merchandise. Passengers were only allowed to bring with them 50 soles in silver coin.

The Peruvian Congress convened at Lima in August. The President's message declared that Peru would soon be in a position to ransom Arica and Tacna without additional taxation, and it complained of the vexatious relations with the Peruvian Corporation that rendered foreign credit impossible. Congress adopted the gold standard in October by a majority of one vote, and a decree was promulgated on December 11 ordering all customs duties to be paid in English gold at the fixed rate of one sovereign for ten soles. Peruvian silver would be received at market value only.

The President had vetoed a bill providing for marriage by the civil authorities, but the Congress again passed a similar measure in December. The only legal marriages in Peru were those celebrated by Roman Catholic priests, and this measure was of great importance to all non-Catholics. The civil marriage law was promulgated on Christmas Eve, and the President of the Cabinet resigned in consequence.

Uruguay. Another revolution seemed imminent at the beginning of the year. The Government was defying public sentiment and making obnoxious appointments, and there were many complaints that the recent elections had been fraudulent. Business affairs were very much depressed. The Congress opened on February 15, and in his annual message President Borda asserted that the Government had allowed full electoral liberty, and that there was no reason for the prevailing agitation. A state of siege was declared in March at Monte Video, and orders were given for the mobilisation of the troops, some 10,000 in number. Half of these were raw recruits, and there were many deserters. Fighting began in March in the interior, and a severe engagement at Paysandu resulted in the defeat of the Government forces. Sympathy in Uruguay inclined towards the rebels, who continued to gain some successes, but neither the Government, the rebels, nor the people were anxious for peace. During the first six months of the year there was a falling off in Custom House receipts of $1,249,522, and for the year ended June 30 of $1,644,826. An armistice was arranged in August. On August 25, the anniversary of the National Independence, as President Juan Idiate Borda was leaving the cathedral, accompanied by his ministers and followed by a crowd of officers and diplomatic and state officials, he was shot by a man named Arredondo who stepped out from the footpath. The President fell mortally wounded and died in a few moments. There was little surprise at Señor Borda's death and still less regret.

The civil war ended in September. The Vice-President, Señor Juan Cuestas, succeeded ad interim to the presidency on

the death of Señor Borda. He promised to adopt a conciliatory policy, and to conduct the Government economically. In November, a plot to kidnap him was frustrated, and the authors of the plot were exiled.

Venezuela. Diplomatic relations between Great Britain and Venezuela were officially resumed in March, and Dr. Juan Pietri was appointed minister at the court of St. James. The arbitration treaty to determine the British Guiana and Venezuela boundary line was sanctioned by the Venezuelan Legislature, and President Crespo signed it without delay.

The arbitration court was to meet in 1898 at the end of summer. Professor Martens of the University of St. Petersburg was selected as umpire and president of the court by the arbitrators. The Venezuelans were grateful for the good-will of the United States Government, but repudiated any desire for a United States protectorate in South Ainerica.

General Andrade was elected President of the Republic in September by an overwhelming majority.

In October, Venezuela was suffering from a severe financial crisis. Payment of pensions was suspended, and salaries of Government servants were reduced 30 per cent. Banks were refusing discounts, and the import trade was paralysed. President Crespo, after conferring with Andrade, the President-elect, formed a new Cabinet, which included several of the coming President's followers.

CHAPTER VIII.

AUSTRALASIA.

THE record of the year is not marked by any event of political importance. The colonies have continued to make steady progress in the path of industrial and financial development, while nothing has happened to attract the attention of the outer world to their domestic history. The effects of the late commercial depression may be said to have entirely disappeared, and though some of the individual colonies suffered from droughts and other plagues injurious to industry they have on the whole been fairly prosperous. The wheat harvest was abundant, and though the wool clip was slightly below the average the output of precious metal showed that Australia still maintained the foremost place among the gold-producing countries of the world. The total yield of the year 1896 was stated to be of the value of 9,103,4797., to which Victoria contributed 3,220,3481., while Queensland and New South Wales came second and third. Nearly all the Governments were fortunate enough to be able to announce to their Parliaments that they had been successful in establishing a due equilibrium between income and ex

penditure. A singular and almost unique feature in the Australasian history of the year is to be noted in the fact that while all the Ministries had been assailed, as usual, by motions of want of confidence, not one was defeated or changed. The balance of parties remained unaffected. The visit of the Prime Ministers to England, on the occasion of the great Jubilee, so far from weakening their power at home, as some of them had feared, tended greatly to strengthen their position through the loyalty which was evoked by the imperial celebration and the delight of the colonists in the honours paid to their representatives by the mother country.

Once more the question of federation was in the forefront of Australian politics, but though it occupied a much larger share of the public attention than in any previous year, it cannot be said that any sensible progress was made in the realisation of that project of unification which has occupied the colonies for some years. Convention has followed convention, varied by conferences and assemblies of Premiers, only to show that there still remain radical differences between the colonies such and so great as almost to make the higher national statesmanship despair of a solution. It is a Sisyphean labour, which has year by year to be renewed from the beginning. The colonies meet full of professions of zeal for federation, to break off more determined than ever to insist on their separate and individual rights. While statesmen of all parties are profuse of their sympathies with the federal cause, the nearer it comes to a prospect of success, the more pronounced their differences appear. One year it is New South Wales that is obstinate, while Victoria is eager and Queensland agreeable-the next, it is Queensland that is coy, and New South Wales ardent, while Victoria is indifferent. The more unity is desired by one leading colony, the more it is suspected by another; and so the see-saw of conflicting jealousies and rival interests goes on, to the despair of all the loyal and right-minded friends of the colonies. Meanwhile with the progress of time the centrifugal tendencies grow rather than diminish, while the individual characters of the several colonies and all that makes for separation become more and more prominent and potent.

The series of movements towards a federal concert began with a meeting of the Australian Premiers at Hobart in the first week of February. They discussed Mr. Chamberlain's project of a British Zollverein, on which they came to no conclusion, awaiting further evidence of the imperial intentions. They invited returns on the commercial relations between Great Britain and the colonies, and decided not to take part in the commercial treaty with Japan, in regard to which Power and its supposed designs on Australia a good deal of jealousy is affected in the northern and eastern colonies.

The Federal Council met also at Hobart under the auspices of the governor to discuss certain measures of common

interest. A good deal of heat was evolved in the issue of the discussion, and recriminations were exchanged among the delegates. Sir George Turner's proposal to appoint a select committee on the New Hebrides was adopted. The French in New Hebrides were charged with supplying the islanders with liquor and arms contrary to the convention with England, and a possible danger to Australian interests through a French annexation was dwelt upon. Some members spoke of the danger of establishing an Australian Monroe doctrine. Ultimately it was decided to refer the matter to the Imperial Government. Sir H. Nelson, the delegate from Queensland, declared that his colony would join in any practical scheme of confederation. The Western Australian delegates showed a certain tendency to side with Queensland in her hesitancy. All the colonies agreed to send detachments of their troops to the London Jubilee.

The popular elctions to the Federal Convention were held throughout the five colonies in the early part of March. Im New South Wales some of the results of the popular vote were surprising. All the Labour candidates were defeated, their declarations as to what they supposed federation to mean not being acceptable to the mass of the electors. Cardinal Moran, whose candidature evoked much religious animosity, failed in securing a place among the New South Wales delegates. Mr. Barton, who though a leader of the Opposition has been consistent in his advocacy of federation, was at the head of the poll, with Mr. Reid, the Prime Minister, second. It was reckoned that 58 per cent. of the electors voted. In Victoria the Premier, Sir George Turner, headed the list of successful candidates. In the three other colonies which participated in the elections (Queensland abstaining), a fair amount of public interest was taken in the elections.

The new Federal Convention met first at Adelaide on March 22, Mr. Kingston, the South Australian Premier, being chosen to preside. Certain cardinal resolutions submitted by Mr. Barton, the New South Wales delegate, were carried unanimously on March 31. The essential points agreed upon were that there should be two Houses of the Federal Parliament, that the colonies should be equally represented in the Senate, that the framing of colonial tariffs should be vested in the Federal Parliament, and that there should be free trade between the colonies. The Convention decided, by a majority of one, to retain the designation of Commonwealth rather than that of Dominion. A motion for adult franchise was rejected by 19 to 4. The Senate was to consist of six members from each colony, and was empowered to amend money bills. A motion in favour of a female franchise was negatived by a large majority.

The hopes which were raised by the proceedings of this first meeting of the Convention were hardly sustained at the second, which began at Sydney on September 2. The parliamentary