seventy seamen with a Nordenfeldt gun had not arrived and restored order. The Governor ultimately summoned the Legislative Council and introduced the measure, which was passed by the vote of the official majority against the unanimous vote of the unofficial members.

Trinidad and Tobago.-Sugar raising has not been remunerative for the last few years on these islands, but there was an increased export of cocoa, and 80,000 tons of asphalte were taken from the pitch lake in Trinidad last year. Sir Frederick Napier Broome, the newly-appointed Governor of the Islands, entered upon the duties of his office.

VI. SOUTH AMERICA.

Argentine Republic.-Affairs in Argentina went on from bad to worse during the year 1891. After the revolution of July 1890, Vice-President Pellegrini succeeded the deposed President Celman, having formed a coalition Cabinet. The Presidential election for a term of six years was expected to occur in March 1892, and there was much excitement in the country. General Bartolomé Mitre, who had held the office of President before, a worthy and much respected man, was invited to become a candidate, and for a time it seemed that he would be chosen by the consent of all parties, but dissensions arose later among the various parties, and his chances of election were much lessened. The Union Civica that supported his nomination, being composed principally of Buenos Ayres citizens, aroused the jealousy of the people in the interior provinces to such a degree, that in June the Radical party nominated Señor Saenz Pena for the Presidency, while several other candidates were proposed by the other political parties. In October General Mitre announced his intention of withdrawing from the contest on account of the want of unanimity among his supporters. There were local outbreaks from time to time during the whole year, with riots and disturbances caused by political and local dissensions, while the depressed condition of business affairs no doubt helped to aggravate them.

The Budget for 1892, as finally voted, fixed the expenditure at 4,600,000l., with an estimated revenue of 4,400,000l., but it was feared that the Congress had secretly voted for additional expenditure to provide for new ironclads and armaments, quite out of proportion to the resources of the country. The Customs revenue, for nine months ending in September, showed a reduction of 660,000l., compared with the same months of the preceding year.

The harvest for 1891 was valued at 16,420,000l. Wood and timber produced 6,600,000l., hides 4,100,000l., and miscellaneous articles 11,000,000l. The continual inflation of the currency gave reason for the gravest apprehension. At different periods

of the year the gold premium was as follows:-On January 1, 225; March 1, 260; April 1, 267; May 1, 256; June 1, 311; July 1, 248; August 1, 307; September 1, 294; October 1, 331; November 1, 294; December 1, 276; and December 19, 286.

When General Roca retired from power in 1886 the financial condition of the Argentine Republic was as follows:-Currency $70,000,000, debt $117,200,000, revenue (gold) $37,200,000. The value of the currency dollar was 80 cents (gold). In August 1890, when Celman was overthrown, the currency was $200,000,000, debt $355,800,000, revenue (gold) $29,200,000. The value of the proper dollar was 40 cents (gold). In November 1891, currency was $300,000,000, debt $475,000,000, revenue (gold) $22,500,000. Value of paper dollar 27 cents (gold).

To assist the Jews compelled to leave Russia, Baron Hirsch started a colony in the Argentine Republic. An association was formed, which he endowed with a capital of 2,000,000l., and 1,300 square leagues of land in the Chaco were purchased at 2001. per square league, to provide a settlement for one of the colonies of outcast Hebrews.

Brazil. The new Republic of Brazil did not attain the quiet enjoyed under the Empire, and experienced the usual fate so common to South American Republics. On November 3, President da Fonseca (who had been formally elected head of the Government, February 25) dissolved the Congress, and ordered a new election of representatives. A conflict had arisen between the President and Congress, and fearing that Marshal da Fonseca would proclaim himself dictator, the Legislature passed a law determining the process by which a President could be impeached. Fonseca vetoed the measure, but his veto was overruled by Congress. The President thereupon dissolved the Congress, and a state of siege for two months was declared in Rio de Janeiro. Riots occurred there, and many persons were killed. The Congress charged the President with the unwarrantable assumption of sovereign power, while the President accused the Chambers of passing laws contrary to Republican ideas. This was the re-establishment of a dictatorship, and in justification of his arbitrary act, the President addressed a manifesto to the nation. At first it was thought that the army and navy would support Fonseca, but in that he was disappointed. The State of Rio Grande de Sul refused to accept the situation, and appealed to arms for the settlement of the dispute; and nearly half of the army stationed in that State, both regiments and garrisons, revolted. On November 23 the navy broke out in open revolt, and demanded the resignation of the MarshalPresident, who, finding resistance useless, was forced to comply with the wishes of the insurgents. Vice-President Floriano Peixoto then assumed the reins of Government, and a new Cabinet was appointed. Francisco de Paula Rodrigues Alvez, an eloquent speaker, and one of the ablest financiers in Brazil,

was made Minister of Finance. Marshal da Fonseca, besides abdicating the Presidency, resigned his command in the army. President Peixoto declared Fonseca's act in dissolving Congress null and void, and summoned that body to meet December 8, while Marshal da Fonseca attempted to justify his coup d'état in a long manifesto, in which he charged the representatives in Congress with incompetency, and defended his usurpation as necessary to the public safety.

Railway concessions were granted by the Government for numerous new lines of roads. In October a Bill was passed reorganising the federal offices, under the departments of Finance, Justice and Interior, Industry, Means of Communication and Public Works, Foreign Affairs, War, and Navy. A decree was issued November 7 providing for the lease of the State railways for not less than thirty-three years. The most important of the ten Government railways is the Central, which is 535 miles long, and is the only one that pays a dividend.

Dom Pedro, the ex-Emperor of Brazil, died at Paris on December 2, aged 66 years. His attachment to his country was unimpaired by the harsh treatment he had received from his late subjects, and a general feeling of grief and regret was expressed in Brazil, while they remembered too late his many private and public virtues.

Chili. The conflict between President Balmaceda and Congress ripened into revolution. On January 1, the Opposition members of the Senate and House of Deputies met, and signed an Act declaring that the President was unworthy of his post, and that he was no longer head of the State nor President of the Republic, as he had violated the Constitution. On January 7 the navy declared in favour of the Legislature, and against Balmaceda. The President denounced the navy as traitors, abolished all the laws of the country, declared himself Dictator, and proclaimed martial law. It was a reign of terror. The Opposition recruited an army in the Island of Santa Maria under General Urrutia and Commander Canto. On February 14 a severe fight took place with the Government troops in Iquique, and the Congressional army took possession of Pisagua.

In April, President Balmaceda, at the opening of the newlyelected Congress, delivered a long message, denouncing the navy for attempting to subvert the Government. The contest continued, and April 7, Arica, in the province of Tarapaca, was taken by the revolutionists. Some naval fights occurred later, and the ironclad Blanco Encalada was blown up by the Dictator's torpedo cruisers. Finally, on August 21, General Canto landed at Concon, ten miles north of Valparaiso. Balmaceda's forces

attacked immediately and were routed, losing 3,500 killed and wounded. The Congress army lost 600. On the 28th a decisive battle was fought at Placilla, near Valparaiso. The Dictator had 12,000 troops, and the opposing army 10,000. Balmaceda's

forces were completely routed after five hours' hard fighting, with a loss of 1,500 men. Santiago formally surrendered, and the triumph of the Congress party was complete. A Junta, headed by Señor Jorge Montt, took charge of affairs at Valparaiso August 30. Balmaceda, who had taken refuge at the Argentine Legation in Santiago, was not able to make his escape, and to avoid capture, trial, and punishment, committed suicide, September 20, by shooting himself. On the 19th November Admiral Jorge Montt was chosen by the Electoral College, at Santiago, President of Chili, and on December 26 he was installed with great ceremony and general rejoicings.

Paraguay. A financial panic occurred at Asuncion June 2, when gold rose to a premium unprecedented, being quoted at 660. It was due to the reckless management of the Government, and to the influence of the depression in Argentina and Montevideo. The revenue, which in 1889 was over four millions of dollars, fell away in 1890 to $1,736,103.

Uruguay.-Emigration was steadily increasing, and in April and May the proportion of departures to arrivals was nearly three to one. Some 60 per cent. of those leaving were Italians unable to find work in the country.

Dr. Ellauri sailed for England June 12, on a financial mission, one of his objects being to arrange for amortisation by purchase of the bonds of the Uruguay public debt, instead of by drawings at par. The Government was in financial straits, and therefore another conversion of the Uruguayan debt was proposed to Congress by message from the President, providing for the payment of 4 per cent. on the consolidated debt-viz. 3 per cent. for interest, and per cent. for amortisation. Much dissatisfaction was expressed by bondholders with the proposed reduction. Forty-five per cent. of the Customs revenue was promised for the service of the debt, and it was a choice between this adjustment and a suspension of payment altogether. At the close of the year there was still uncertainty concerning the whole scheme of readjustment.

Venezuela. A settlement of the long-standing boundary dispute with British Guiana was attempted by the intervention of the United States Government, which was not grateful to the British Government. The unsettled relations with Venezuela were proving injurious to British commerce. British exports to Venezuela amount to more than a million sterling yearly. The dispute respecting the boundary can only be settled by arbitration, to which the British Government does not consent. Venezuelans assert that the real frontier between their country and the British colony of Guiana is marked by the Essequibo river. Great Britain took the colony from the Dutch, and claims that Guiana extends to the west of that river. American trade with Venezuela was increasing, and amounted for the last fiscal year to 10 millions of dollars. This was partly due to the boun

The

dary dispute and partly to difficulties with the Central Railway of Venezuela, and the La Guayra Harbour Improvement Company-both British enterprises. The people have been jaded with incessant revolution for the last thirty years, and have lately been enjoying a prosperity unusual to South American Republics. How long it will last is rather doubtful.

CHAPTER VIII.

AUSTRALASIA.

A

THE question of confederation has occupied a prominent place among the colonists of Australasia during the year 1891. Convention to decide on the outline of a Federal scheme, to which all the colonies sent representatives, irrespective of local party divisions, met at Sydney on March 2, under the presidency of Sir Henry Parkes, the veteran Prime Minister of New South Wales. The proceedings were on the whole worthy of the momentous occasion, the delegates being impressed by a full sense of the gravity of their duties, and exhibiting in their deliberations, not less than in the results to which they reached, a spirit of loyalty to the Empire, and of regard for the future of Imperial Unity, which is full of happy augury for the ultimate success of the movement. On the main point, namely, as to the desirability of some form of political union, there seems to have been little or no difference among the colonial delegates. Nor is it open to doubt that a general belief existed that the Federal Union would be accomplished, at least, of all the Australian colonies proper at some date not distant. After a debate extending over five weeks, during which the utmost liberty of discussion was claimed and permitted, the delegates agreed to the draft scheme of a Federal Constitution, to be submitted hereafter to the Legislatures of the various colonies. The leading features of that constitution, in which the delegates were practically unanimous, include a Federal Parliament with two Houses, in which the Council or Upper House is to consist of two representatives of each colony, of equal rank and power, irrespective of local differences of size, importance, or population, with a Lower House of Representatives elected on a popular basis. The Upper House, which is thus modelled on the principle of the American Senate, is restricted to functions analogous to those discharged by the Legislative Councils in the several colonies. It will have no power over the public purse, all money bills being exclusively originated and passed within the popular Assembly. The general prerogatives of the Federal Parliament were left, perhaps wisely, loosely defined; but while the fullest liberty is to be granted to each individual constituent State within its juris