No. 394.
Mr. Christiancy to Mr. Evarts.
Legation of
the United States,
Lima,
Peru, May 21, 1879. (Received June
16.)
No. 18.]
Sir: Since my last dispatch of May 21 (No. 16),
viz, on the morning of the 22d, the Chilian fleet (with the exception of the
Esmeralda and Covadonga) appeared off the harbor of Callao and remained for
several hours, when, without attempting anything, it sailed for the South,
having, as is supposed, learned from some fishermen the previous departure
of the first division of the Peruvian fleet (mentioned in my last). Their
expedition to Calico had given the Peruvian fleet time to transport in
safety a considerable part of their army here, with munitions and supplies
to the towns along the southern coast of Peru—Mollendo, Pis-agua, Arica, and
Iquique—and also to transport a part of the Bolivian army from Arica as far
as Pisagua, and to form a junction of the Peruvian with the Bolivian
army.
Since that time, and while the Peruvian and Chilian fleet were mutually
ignorant of the whereabouts of the other, it is reported here, and I think
correctly, that the Huascar (Peruvian) attacked and sank the Chilian
steam-corvette Esmeralda at or near Iquique; and the steam frigate
[Page 880]
Independencia, chasing the Chilian
Covadonga, and when on the point of reaching her (on her flight for the
shore) ran aground or upon a reef, from which it was found impossible to get
her off, and she was abandoned and burnt or blown up by the Peruvians
themselves.
This is a serious loss to Peru, but does not, in my estimation, overbalance
the advantages gained by Peru in this expedition to the South. But this may
yet depend much upon what the Huascar may have been able to accomplish
before the arrival there of the Chilian fleet, and upon her success in
avoiding the Chilian fleet. But unless she waits too long she will probably
easily evade that fleet, as it is composed of very slow vessels; and some of
the Peruvian transports which went south have returned without seeing the
fleet.
The effect of the war upon the finances becomes every day more disastrous.
Exchange on England is now quoted at 16 pence per sole, and an American
double eagle is worth to-day 62 soles.
I inclose a copy of the act of the Peruvian Congress passed for the purpose
of providing ways and means by loan and taxes. This is taken from the South
Pacific Times, but is translated with substantial accuracy.
I have, &c.,
[Inclosure 1 No. 18.—South Pacific
Times.—Translation.]
Luis La Puerta, first vice-president of the republic, in
charge of the executive power.
Whereas the Congress of the Republic of Peru has given the
following law:
- Article 1. Let a national loan be
effected for the sum of ten million soles in current money of
the republic, at the figure of eighty per cent., and eight per
cent. interest per annum, with ten per cent. accumulative
amortization.
- Art. 2. The service of this loan
will be effected at the termination of every quarter, beginning
with the quarter expiring on the 1st of October, 1879, and the
amortization will be made by lot and at par.
- Art. 3. The amortization and
interest funds will be guaranteed by the product of the
capitation and income taxes, and the tax on the exportation of
sugar, sanctioned by the present special Congress, and will
also, as a subsidiary guarantee, be assured by the product of
such national property as may be of easy appropriation.
- Art. 4. The sale of the national
property subject to the service of this loan will be effected at
public auction, and the payment must solely be made in bonds of
the loan authorized by this law.
- Art. 5. The loan must be effected
within the peremptory term of forty-five days from the date of
the publication of this law.
- Art. 6. If, at the expiration of the
said term of forty-five days, the subscriptions should not cover
the full amount of the loan, the actual issue of notes shall be
increased in the proportion of the sum wanting to complete the
eight millions which the loan will produce.
- Art. 7. Let the committee appointed
by the law of the 27th January last be empowered to deliver to
the executive, in notes of the new issue, the complement of the
eight millions to which the preceding article refers, and also
to effect the issue and the service of the loan in the
proportion subscribed; to which end the funds appointed by this
law for said service shall be handed over to them.
- Art. 8. The sum of one million eight
hundred thousand soles out of the funds for the service of the
loan shall be set aside for the payment of amortization and
interest of the same loan, should it be entirely covered. If
not, of this amount the necessary sum shall be applied to the
service of the loan as far as covered, adding the remainder to
the fund of amortization of the fiscal issue.
- Art. 9. If the funds set aside by
this law for the service of the loan should exceed one million
eight hundred thousand soles, the administrating committee shall
deliver the excess to the executive.
- Art. 10. The two millions of soles
in restamped notes, which the associated banks had in deposit
for the exchange of the unstamped notes, and which the executive
has been authorized to issue by the legislative resolution of
the 13th instant, shall be considered as an integral part of the
subsidiary issue authorized by this law, which in
[Page 881]
no case can exceed
eight millions. Should the loan he effected in its entirety, the
two last millions received will be used for the amortization of
the two million of soles in notes referred to in the
article.
Notify the executive, &c.,
Given in the hall of sessions in
Lima on the 17th day of May, 1879.
JOSÉ ANTONIO GARCIA Y GARCIA,
President of
the Senate, &c.
Therefore, I order the same to be printed, published, and received as
law.
Given in the house of government in
Lima
this 20th day of
the month of May, 1879.
- LUIS LA-PUERTA.
- J. R. de Izcue.
