THE GLOBE. WEDNESDAY, DECEMBER 10, 1879.

Globe, Volume XXI, Issue 1811, 10 December 1879, Page 2

THE GLOBE. WEDNESDAY, DECEMBER 10, 1879.

We have occasion, from time to time, to publish telegrams relating to tho ChilianPeruvian war. The latest were to tho effect that tho Chilians had captured Iquiquo, and subsequently that they had defeated their adversaries at Tarapaea and wore blockading Arica. But little general interest is taken in those South American states except by unfortunate bondholders, who have shed tears and dollars over tho impecuniosity and extravagance of most of them, for they have nearly all, with tho exception of Chili, at one time or other, “ lot in ” a too confiding public. It may ho of interest, nevertheless, to trace the origin and cause of the present war, which, commencing in March last, has lingered on during nine long months, and to record tho had faith of Bolivia and Peru, which has boon tho origin of the hostilities, if only to draw the moral that states who do not think much of dishonouring their engagements are apt to act in as shady a manner in other particulars. There is a strip of territory on tho confines of Chili and Bolivia, shown on the maps as tho “ Desert of Atacama,” which, in years gone by, was considered utterly worthless, and while each state claimed the sovereignty over tho district, neither cared in tho least to exert it, oven although beds of guano wore found along tho seaboard. An arrangement, however, was at last arrived at that Bolivia should administer tho district, hut that one-half of tho little revenue that might ho derived therefrom should, after payment of expenses of administration, he handed over to Chili. But explorations in the district disclosed tho fact that it possessed very valuable minerals. Largo deposits of nitrate of soda wore discovered about 100 miles from the coast, and still further inland was found tho silver mine of Caracoles. A Chilian company was found to work the nitrate hods, and in 1873 it was arranged, in order that a monopoly in those nitrate deposits might not be created, that the Chilian Nitrate Company should bo limited in the field of its operation, and tho Bolivian Government undertook that for fifteen years no duties should he imposed. In 1874 a treaty was made between Chili and Bolivia by which Chili renounced her half share in tho revenue that was derived from the district on tho understanding that Bolivia should levy no duties on the minerals obtained by Chilian companies for the space of twenty-five years. Nevertheless, at tho beginning of last year Bolivia broke faith entirely with its too confiding neighbour, and not only laid a heavy impost on the minerals which the abovementioned Company were exporting, but absolutely confiscated its property. To such a proceeding Chili naiurallyobjectod, but in order not to proceed to extremities, offered to submit the entire affair to arbitration. Bolivia refused the suggestion, and Chili then seized the sea board of the district. Unfortunately for tho good name of Peru, she had entirely acquiesced in the malpractices of Bolivia. And in order to understand why she did so, it will be necessary to examine some extraordinary financial and governmental doings in that somewhat free-and easy State. Peru also pessosses hods of nitrate, and, before tho discovery of the hods alluded to above, had, to a certain extent, a monopoly of tho trade; at all events as far as South America was concerned. The nitrate beds in Peru, however, belonged to private persons, and the Government, who were anxious to raise a loan and got hold of a little spare cash, were of opinion that their only chance of raising any money was to raise it on the security of these nitrate fields. They immediately took tho bull by tho horns." They impostd prohibitive duties on tho mineral, and told the unfortunate owners that if they did not care about paying them they had better sell their fields to tho Government. To this many of the owners were forced to agree. But the discovery of the new nitrate hods which we have mentioned as being worked by tho Chilian Company rather non-plussod tho Peruvian Government. It was evident that with a practically limitless supply issuing from the new district, it would he impossible for them to raise tho price of the article and gain the full' advantage which they had hoped to ; reap through their sharp practice with their owu subjects. They, therefore, entirely backed up Bolivia in its breach of good faith with Chili, and hoped that by this moans the export by tho Chilian Company would be put a stop to, and that Peru might command the market and ask whatever price it might chose to demand for the article. Such was the state of affairs iu March last. Chili had seized the sea-hoard of the territory wo have described, Bolivia was arming, and Peru, although it had not declared war, was'evidently prepared to do so. The Peruvians entered into tho affair with enthusiasm; their journals were unanimous in declaring that the occupation of Bolivian territory by Chilian forces without a declaration of war, and, according to the official press of Santiago, for the purpose of holding tho annexed district as an integral part of Chili, was so dangerous in itself that, not only should diplomatic remonstrances bo resorted to, hut that everything should ho made ready for immediate action in case Chili persisted iu her intention regarding this district of Atacama. Moreover, argued Peru, if Chili is allowed quietly to annex a large portion of valuable territory belonging to a weak neighbor, tho ambition of other powerful States may bo awakened and our own possessions may ho endangered not only on our southern coasts, but possibly iu our Amazonian regions. Besides there had never boon any really friendly feeling between Peru and Chili since tho occupation of Lima in 1838 by Chilian troops, and tho flame of hatred was easily fanned into a white heat. As Oaili had only resorted to what she had done under the strongest provocation, and as she refused to retreat unless the wrongs she complained of were righted.

Peru finally allied lierself with Bolivia. The Bolivians, too, wore not less eager to join in the fray than the Peruvians. They offered 50 per cent, of their revenues to President Daza as a subsidy for the war, an offer which was, however, only, accepted to the extent of 10 per cent. But the Chilians proved themselves to he better prepared than either of their adversaries. By the 20th of March they had occupied Oobija, Tocapilla, and Calama, and had blockaded Iquique, whore the Peruvian troops wore concentrating, and had immediately assumed the offensive, although it must bo confessed that the said operations were only offensive as compared with the greater languor exhibited by their opponents, for neither side has displayed even an ordinary amount of energy. Bombardments of comparatively defenceless places, captures of helpless vessels, the destruction of water condensers and guano-landings being considerably the order of the day. And this perhaps is not to bo wondered at. The Bolivian army is but small—a sort of army that has no commisariatandlives principally on biscuits—and there are no factories for the manufacture of arms or powder in the country. Neither is the Peruvian army largo, for although, by reason of the revolutions that are constantly taking place there, nearly every man is trained to the use of arms, the Treasury is so empty that no considerable standing army is kept, and GOO miles of waterless desert divide the seat of war from the centre of the Peruvian resources. Chili was not quite so badly off. It was richer, and at sea it was paramount. It had a respectable force of iron-clads, whereas Peru had but two monitors bought from the United States, together with the ram Huascar and the frigate Indepoudoucia, the two latter of which, by the way, it has apparently lost. The Chilians were thus enabled to entirely blockade their adversaries’ sea coast, to land troops wherever it might please them, and indeed to act much as they thought fit, harrasscd only by the plucky raids made by the Huascar before its destruction, and the off-chance of the Peruvian and Bolivian armies being roused to some sort of energetic action. Latterly it is apparent that the good fortune of Chili is still further in the ascendant, and it is probable that the end of the war is not very far distant. Indeed if nothing else brings it about, financial exhaustion probably will. Even before the war Chili, Peru, and Bolivia were respectively saddled with national debts of £ 13,000,000, £ 50,000,000, and £3,500,000 respectively, and what with the protracted war expenditure, the check upon production and the destruction of property and trade prospects, the people must by this time bo in a very bad financial way indeed. The first enthusiasm has worn off, the inhabitants in each of the countries are no longer coming forward so eagerly with funds for war purposes, the Chilian legislature has authorised the issue of Treasury certificates to a very large amount, Peru has taken to issuing paper money ad libitum, and Bolivia is in much the same case. However much the frugality of the Bolivian army may bo generally admired, war now-a-days is not carried on without funds, and when all sides are financially prostrate some sort of arrangement will be patched up, unless, indeed, Chili finds herself able to dictate terms. It is impossible not to feel some sympathy with the Chilians, who have always endeavoured to moot their engagements, and wore forced into this ruinously expensive war by the greed of their neighbours.