No. 296.

Mr. Alvin P. Hovey to Mr. Fish.

No. 230.]

Sir: As by this time you will have received my resignation as envoy extraordinary and minister plenipotentiary of the United States of America near the government of the republic of Peru, I deem it to be my duty to lay before the Department of State a short outline of my [Page 505] services since the 10th of October, 1865, and views in regard to the present political and social condition of this republic, believing this to be necessary to aid my successor, and to place within easy reach of the Department such facts as may be of future service to our country.

Arriving in Lima, the capital of Peru, on the 20th of November, 1865, I found the city in the midst of a revolution between the forces of Vice-President Canseco and those of President Pezet. The dead were yet lying in the plaza. Much gallantry was displayed by the assailing party under Colonel Prado; Pezet’s forces were compelled to retire with defeat, and Vice-President Canseco assumed the reins of government, with wild demonstrations of passion against Spain.

On the 26th of the same month, about sixty officers met, and resolved to appoint a dictator, and concentrating about two thousand persons in the plaza, or public square, proclaimed Colonel Mariano Ignacio Prado Dictator of Peru.

Under my instructions I awaited to “only recognize the constitutional government” until the 22d of May, 1866, when I was presented with all the courtesies due to a minister from the United States. This policy on the part of our Government was wise, although, for the time being, it retired me to the shades, and gave every other minister here a temporary triumph over me.

Going behind the date above named, I must not omit an important historical event, both for Peru and the cause of history, the 2d of May, 1866, “El Dos de Mayo,” when the great battle of Callao was fought. On the 1st of May, after Mendez Nunez, the admiral of the Spanish fleet, had announced his intention to bombard Callao, as he had done Valparaiso, I was sent for by President Prado to meet him. He was surrounded by his cabinet, Galvez, Pacheco, Prado, Quimper, Tejeda, and by several of his staff, whose names I do not now remember. On entering the room, the President approached me and said, “I have sent for you to advise with you, not as a diplomat, but as one of the best friends of America in our great emergency. What do you think of to-morrow?” I replied that as an officer of my Government, that held friendly relations with both Spain and Peru, I had no right to advise him. “But,” said he, “tell me privately, as a friend, what are your opinions?” I replied to him, and in this I may have done wrong, “If the fleet fight you with vigor and in the proper manner, they ought to whip you in fifteen minutes.” The President and the entire cabinet seemed surprised, and desired to know my reasons. I replied, “The Spanish fleet can fire ten guns to your one, and if they close upon you so as to effectually use shell, grape, and canister, I believe they will silence all your batteries, and destroy your town; your only hope is to make them fight you at long range.”

Galvez, the secretary of war, took issue with me, and did not believe that my views were correct. I said to him, “Very well, Mr. Secretary of War, Peruvians may be able to meet ten guns with one, but my people, though I have seen some little service, are not so firm and brave.”

The President then inquired what should be done. I repeated to him: “Make them, if possible, fight you at long range, and then you are sure of victory.” “But by what means?” “It is not for me to dictate or say, but torpedoes are dangerous, and ships and sailors have a holy horror of such infamous and profane implements of war.” That night, by some means, forty barrels of powder, connecting by wires with an electrical battery on shore, were sunk in the bay. The French, informed the Spanish fleet of this fact, and before morning nearly every wire was cut. But the battle came on, on the glorious “Dos de Mayo,” [Page 506] for so both Spain and Peru call it, and the fleet bore bravely up toward the forts, reaching within three-quarters of a mile. Then, as they were gallantly exchanging shots, two torpedoes exploded and threw columns of water at least 150 feet in the air. The whole Spanish fleet retired and fought at long range for the remainder of the day. Such was the cause of the success or defeat that followed this action, so glorious both to Peru and Spain. On the part of Peru it will be a feast day forever, and on the part of Spain the Duke of Callao claimed his title for this victory!

After the “Dos de Mayo,” Prado came into Lima as a conqueror, the streets being strewn with flowers, and the populace actually kissing the hem of his garments.

In October, 1866, Prado was duly elected President, with an over-whelming majority of Congress in his favor. Several reforms were inaugurated by him before his election, among which may be named the abolition of pensions. This was a severe blow to the aristocracy of the country. The families of the “old hidalgos” actually monopolized the revenues and offices of the nation, and there was nothing left with which to support the government. Nearly every white family, in some way or other, were pensioned. Ex-officers, as well as those in service, drained the revenues, so that the machinery of government was nearly paralyzed. At these evils Prado struck, abolishing all hereditary pensions. He next attempted to introduce a system of capitation taxation, which proved a complete failure. Then one of his ministers, Quimper, sought to interfere with the rights of the church, and the women and priests rose en masse against the decree. I have always believed that Prado favored the greatest liberty, both civil and religious, and have no doubt that this belief in the minds of others hastened his downfall. The priests opposed him for this reason, and the women followed the counsel of their father confessors.

The grand marshal, Don Ramon Castella, after having been wisely banished from Lima by President Pezet; and sent on a trip to circumnavigate the globe, returned from his long voyage in May 1866, and found Prado, his protegé, in power. Still the “old man ambitious” could not rest where others held higher positions, and, without the shadow of a cause, left Lima for the south, raised the banner of rebellion, and died on the wayside, with his saddle for a pillow—a singular character, full of many virtues and some vices. Strange to say, Congress, then in session, voted him all the honors of a grand marshal, a mausoleum, and granted to his widow the same pension as if he had died in the defense of the established institutions of his country. Who would not dare to be a traitor with such liberal friends for enemies?

The republic, on my arrival, being disturbed by revolutionary movements in every direction, the legations and consulates were crowded with political offenders and disaffected persons seeking asylum. In December 1865, I addressed the Department, in my dispatch No. 4, on this subject, and deprecated the practice, as being fraught with evil consequences to the progress of order and to the future prosperity of this country. I was opposed by every other diplomatic representative here in my opinions, but at length triumphed over them all, and the government of Peru, on the 20th of January, 1867, announced that asylum, as heretofore practiced in Peru, should be forever abolished, thus placing herself upon the broad basis of other civilized nations.

Subsequently, on the 27th of December, 1867, after Prado’s overthrow at Arequipa, he came to this legation, claiming protection. I immediately informed him that he should be safe from all illegal violence; [Page 507] but that if the courts of the country should send a lawful command for his arrest, I could not, under the rules established by himself in regard to asylum, give him any further protection. On the morning of the 5th of January, 1868, 1 wrote him a short note, urging him to go among his troops, make promises, and appease the people, offering to ride with him if he would permit me. He declined to expose me for his sake, but rode out with his aides. The people attacked him with stones near the plaza, when he drew his sword, and with his single arm drove them before him. After this he returned, and with his family, numbering some eight or ten persons, came to the legation, the mob yelling and following with wild demonstrations.

Mr. Brent, the secretary of this legation; Lieutenant Commander C. W. Tracy, of the United States Navy; my son, and Mr. Carpenter, then secretary of the legation of the United States to Chili, were the only men within the house, but we were all well armed with revolvers and rifles, and momentarily awaited the attack. From the bay window I could watch their approach, and they came within fifty yards of the door, with cries of “Death to Prado.” At this juncture a gentleman of the name of Bogardus rode among them, and by his influence and representations caused them to desist and disperse.

Prado remained two days in the legation, and no demand was made for him. On the third night he left in a coach secretly, protected by an officer of the new government. Immediately after this, on the same day, General Pedro Diez-Canseco assumed command in Lima as provisional chief of the department of the center, and after remaining long enough in power to make some large railroad contracts, which are said to have enriched him, Colonel Balta succeeded him, and in May 1868, was duly elected President of the republic of Peru. Balta is neither highly intellectual nor cultivated, but seems to have great common sense and firmness. Many efforts have been made to create revolutions against him, but his ready eye, quick and firm hand have as yet never failed to crush them in the bud. Many call him harsh, but I think he is not too harsh for the times and his country. He is the only President that I have yet seen in Peru on foot in the streets without guards, and he rides and walks without any seeming fear of assassination. He is an enthusiast for internal improvements, and since Prado was forced from power the following lines of railroad have been established by law, and are now under construction:

1st. From Mollendo to Arequipa, about 105 miles long, and now nearly completed.

2d. From Callao to the pass of the Oroya, in the Andes, 150 miles long, to connect the Pacific with the Peruvian headwaters of the river Amazon.

3d. From Lima to Huacho, 100 miles in length, over nearly half of which trains are now running.

4th. From Arequipa to the important town of Puno, on the borders of Peru and Bolivia 150 miles long.

5th. From Lima to the agricultural and wine-growing district of Pisco, 110 miles long, now offered for contract.

The whole of these roads will cover nearly 615 miles, and cost about one hundred and twenty millions of money. The greatest number of these works are in the hands of an American, Mr. Henry Meiggs, who has displayed great executive and financial ability. No American on this coast is more popular, and he richly deserves the praise which is universally bestowed upon him. He is certainly the most generous man in Peru, and few Americans leave his doors in want. The greater part [Page 508] of the consideration for building said roads has been paid to him in Peruvian bonds, which are now reported as having been sold in Europe at 80 cents to the dollar. On this basis, if all are sold, he may be entirely safe, but should a reverse, come upon the market price before the negotiation is fully concluded he would be greatly injured, as he has under his control about sixty or seventy million dollars of the same.

In my opinion, it would be well that our people should not invest in these bonds, for I sincerely believe the day of repudiation is not far distant. The “Presupuerto General,” or budget for the Year 1869-’70, will more fully show this fact.

[Translation.]

general resumé.

Sols.
Department of interior 13,824,000
Department of foreign affairs 409,042
Department of justice 4,632,000
Department of treasury 25,212,000
Department of war and navy 10,870,000
Service of debt of 1865 7,000,000
Total 61,948,000

comparison.

Sols.
Revenue for the two years 44,723,100 00
Expenditure for the same 61,948,986 50
Deficit 17,225,86 50

This deficit in two years, besides a national debt of say about one hundred millions more not named, and with this burden, the interest upon the same, and keeping up said 615 miles of road by the government, where will be the 22,361,550 sols, the annual income, as shown by the budget?

There can be no doubt of the benefit these roads will confer upon the country, but as all sections cannot be accommodated with their peculiar lines of imaginary roads, and as these roads, owing to the sparse population and small amount of freight, will never be able to pay for the coal burned by the locomotives, the wear and tear, and annual expense, the consequence must be that a strong anti-railroad party will arise in Peru in less than five years hence. In fact, to run these roads alone and pay the interest on her debts would cost the government her whole revenue, and then who will pay for the expense of the government, over twenty-two millions per annum? I make these arguments because I desire that our countrymen may “stand from under.” I now predict that before the adjournment of the present Congress the anti-railroad party will be fully formed, and will probably control the future destiny of Peru.

The population of Peru has been variously estimated at from three to four millions. Of this number it would not be safe to say that one in twenty are of the Caucasian race; civilized, probably eight hundred thousand, the remainder being Indians, negroes, and mestizoes, who Pave nothing to pay for the expenses of the government. Taxation is almost unknown, except in the cities, where local taxes are levied to improve the same and maintain the police.

Socially the higher classes in the cities are extremely agreeable, many of them having been educated in Europe and the United States, and they excel in the graces of the salon, but the poor are very poor and dependent, [Page 509] and are reckless of the morrow. A stranger who enters the charmed circle only would never know Peru.

There can be no doubt that all power is virtually in the hands of the priesthood, and he who opposes them must fall. The army is the second great power that may occasionally cause vibration on the surface, but it soon subsides under the influence of the infallible church. It will be a long time before a civilian holds high power in Peru.

The people of Peru look to the United States as their great example and particular friend. This has been manifested on more than one occasion, and the representatives of several great nations have come to me to aid them in their just demands against this government. These requests were not made because I personally could do more than themselves, but because they were assured that the influence of our Government outweighed that of all others with this republic. As evidence of this fact, the citizens of the United States alone have received payment for injuries suffered since 1863, and I must frankly say that in my judgment several of the said claims ought not to have been paid. There is a certain class of our people here who are chronic claimants and blackmailers, who bribe when they can, and when they cannot bribe, abuse and lie about those who oppose them. Several of them, it is said, “left their country for their country’s good,” and their Peruvian studies have not improved their morals. I have no doubt the records of the late mixed commission, which I have not seen, will prove a part of this statement.

I have called Peru a republic. These words are too strong, but, as she so styles herself, I have used the phrase. As I understand the word, there are no republics in South America. In my opinion, the people do not govern, constitution and laws do not control. The will of a few families alone is the law. Still the shadow of freedom is exhibited on every occasion to the public gaze, and the people cling to and adore it. I can only hope that the shadow may, some day, become a substance, for in the fullness of my heart my best wishes are for the future progress and welfare of Peru.

In conclusion, I regret to say that the future of Peru does not appear to me in rainbow hues. The country can never become great in agriculture for want of water. There is but little or no coal or fuel west of the Andes to smelt her rich beds of minerals. The guano is nearly exhausted, notwithstanding the marvelous stories told of the deposits on the main land. This, in my opinion, has only been done for financial purposes. A little common sense will convince the most skeptical that such deposits, to any considerable extent, are merely imaginary, as the sea birds, seals, and other marine animals that make and have made these vast deposits in other ages, could and would not expose themselves to the beasts of prey on the main land.

As I am now about to bid farewell to this genial climate and more genial people, I only beg that our country will, on every proper occasion, do all that can be done to advance the growth and future prosperity of Peru.

Peru has unquestionably the finest navy on the western coast of South America, and that fact alone, in my opinion, has compelled a peace with some of her sister republics.

ALVIN P. HOVEY.