No. 73.
Mr. Osborn
to Mr. Evarts.
Legation of
the United States,
Santiago,
Chili, June 5, 1878.
(Received July 15.)
No. 44.]Sir: Congress was formally opened in regular
session on the 1st instant. As is the custom, the President of the republic
read his message in person to both houses of the National Assembly. Having
been honored with an invitation from the minister of foreign relations to be
present on the occasion, I attended the opening and witnessed the
ceremony.
Inclosed you will find a copy of the message in Spanish, as also a faithful
synopsis in English. This synopsis is all that has been published here in
the English language, but it is so complete, that I have deemed it
unnecessary to cause the message to be translated entire.
The message is a plain statement of the condition of the country as it
appears on the surface, but it fails, in my judgment, to meet the
necessities of the hour. It shows a prostration of business and a vast
decrease of commerce; a diminution of the public revenues and an increase of
the public debt; and yet, to my mind, it points out no adequate remedy for
these evils. True, it proposes, with a view of creating additional revenues,
an increase of the duties on imports and the creation of a light income tax;
but these, even if they should be accepted by Congress, would prove
inadequate, I fear, to the necessities of the country, and could not but
fail, I judge, to accomplish the purposes desired.
It is due to truth, however, that I should not allow this to go upon record
without saying that there is in this country a universal sentiment in favor
of meeting promptly, in good faith, the public obligations, and that, in my
opinion, the interest and principal of the public debt will continue to be
paid when due.
“Imports”, says the President, “which in 1876 amounted to $35,291,041, fell
off in 1877 to $29,279,113; and exports fell from $37,771,039 to
$29,715,372, due to the low price of copper in Europe and the deficient
harvest.” Continuing, he says “the revenue has experienced the effects of
the reduction of trade; the ordinary receipts last year being
$13,701,794.65,
[Page 92]
inferior to those of
1876 by $1,658,922.35, and the extraordinary to $4,977,172.02. The
expenditure amounted to $20,463,685.73, or an excess over the revenue of
$1,784,729, to which must be added $634,393.61 deficit standing over from
1876.”
It will be observed that the President announces that the dispute with the
Argentine Government concerning their boundaries has not been definitely
settled, from which you will understand that the treaty lately negotiated at
Buenos Ayres, to which I referred in my dispatch No. 34, does not meet the
approval of the Chilian Government. Of this I will write fully
hereafter.
As soon as they shall assume tangible shape, I will inform you as to the
proposed changes in the duties on imports.
I have, &c.,
[Inclosure in No.
44.—Translation.]
synopsis of president’s message.
June 1.—The ordinary session of Congress was
opened to-day with the customary ceremonies. The President’s message
commenced with the announcement that the foreign relations of the
republic are satisfactory; that no arrangement had been come to on the
frontier question with the Argentine Republic, but that he hoped time
would remove the obstacles which now prevent a settlement. The railway
between Curicó, Los Angeles, and Angol was provisionally delivered to
the state at the beginning of the current year, and its conclusion in a
solid and permanent manner is desirable as early as possible, with which
design the necessary plans and estimates are being prepared. The bill on
the organization of the administration of the state railways is
recommended to the consideration of Congress. The codes on civil and
criminal judicial procedure are in an advanced state. Notwithstanding
the lack of resources, public instruction is receiving the carefulest
attention of government. Commerce last year suffered a notable
diminution. Imports, which in 1876 amounted to $35,291,041, descended in
1877 to $29,279,113; and exports fell from $37,771,039 to
$29,715,372—due to the low price of copper in Europe and the deficient
harvest. These causes still continuing, much improvement cannot be
looked for this year. The revenue has experienced the effects of the
reduction in trade, the ordinary receipts last year being
$13,701,794.65—inferior to those of 1876 by $1,658,922.35; and the
extraordinary to $4,977,172.08. The expenditure amounted to
$20,463,685.73, or an excess over the revenue of $1,784,729, to which
must be added $634,393.61, deficit standing over from 1876. Reductions
have been introduced into the expenditure as far as possible, but it
must not be forgotten that economy has its limit, and the
disorganization of the public service may be an evil of greater
magnitude than additional taxation, even in the present hard times. For
this reason the bills on the reform of the tariff, and the income tax,
are recommended to the attention of Congress. The government has raised
the loan of $3,000,000, which it was authorized to do to cover the
deficit of last year, on advantageous conditions, and has satisfactorily
settled the question respecting the admittance of bank-notes in the
government offices. With the object of deciding the question of the
mineral wealth of the desert of Atacama, an engineer was sent to make a
detailed survey; his report, confirming many of the hopes entertained
from previous explorations, will shortly be published. The advance of
the Araucanian frontier is next alluded to, and the progress realized by
the settlement of that region. The army is complimented on its
efficiency and discipline, and the navy is maintained in as perfect a
manner as the resources at disposal will admit. Some of the vessels have
been laid up, and others, inadequate for the service, sold; the
iron-clad Almirante Cochrane is shortly expected from England, whither
she had been sent for repairs. The coast surveys are being continued
successfully, and the fourth volume of the Anuario has recently been
published, containing a report of the operations of that department. To
improve the instruction of the officers of the navy, the government has
obtained the admittance of some of them to vessels of the English,
French, and German marine. The message concludes by an allusion to the
difficulties existing with reference to the financial situation, and the
hope that they will be overcome by the prudence and patriotism of the
nation; and, in calling attention to the defects in the existing
electoral law, recommends the careful study of the amendments that will
be submitted to it during the present session of Congress.
