FINANCE. The financial condition of Chile is far from satisfactory. The constant wars have enormously increased the public debt, and the rapid increase in the revenue since the Peru vian War. on account of the export duties on ni trate, has brought about an extravagance in public expenditures. The budget has almost. doubled during the last fifteen years, the esti mated revenue and expenditure for 1901 being 841,000,000 and $43,000,000 respectively. Of the former, about 50 per cent. was derived from export ditties on nitrate and the sale of nitrate proper ties. The chief items of expenditure are : Railway building and other profitable works, one-third of the total expenditures; justice and instruction, one-sixth: interior administrati one-seventh; war and marine, nearly one-fourth: finance, about 8 per cent. The external and internal debts (including municipal) of Chile in amounted to $85.000.000 and 825,000.000 respectively. The rate of interest on the external debt varies from to per cent., and the service amounts to about The gold stand ard was adopted by Chile in 1895. In 1898 paper money to the amount of about was issued. and a new loan of $20,000,000 was authorized for the conversion of this paper with in four years. In 1901 the Government decided to extend this period two years.
h)VERNMENT. The Constitution of Chile, adopted May 25, 1833, guarantees to all citizens equality before the law, the inviolability of property. immunity from restraints on domicile and migration, and freedom of instruction, asso ciation, petition, and the press. The legislative authority is vested in a National Congress, consisting of a Senate and a blouse of Represen tatives, which meet at the capital, Santiago. The members of the Lower blouse are elected directly by the people (one for every 30,000 inhabitants), for a term of three years, while the members of the Senate are chosen front the provinces, by the same electorate, for a period of six years, on the basis of one Senator for every three Deputies. Elect ors to either House
must he 21 years of age, and able to read and Members of Congress receive no re muneration. The executive power is exercised by a President. elected for a term of five years, by delegates chosen by the people of the prov inces, to the number of three delegates for every Deputy. He is assisted in the discharge of his duties by a Council of State. consisting of five members nominated by himself and six members named by Congress, and by a Cabinet of six 'Ministers who preside over the departments of the Interior, Foreign Affairs, Worship and Col onization, Justice and Public Instruction, War and Navy, Industry and Public Works. The su preme judicial power is lodged in a high court of justice, located at Santiago, which is composed of seven members, and exercises control over the tribunals of the nation.
A democratic republic in form, the govern ment of Chile in reality is more like an oli garchy than a democracy. The overthrow of the Spanish authority produced no change in eco nomic or social conditions, and political power under the new IT-gime remained in the hands of the great landowners who had controlled affatrs; under the monarchy. The great majority of the population have continued to remain con tent under the old conditions. The Conservative Party has been dominant from the very beginning of the establishment of the Republican forms of government, when Spanish rule was thrown off, and has always wielded a great influence over the people at large. As a result of the monopoly of power by a small number of families. the civil service has suffered. Lucrative places under Government are distributed as favors to impecunious relatives, or as rewards for political services, and the country is over-burdened with public functionaries. nigher ideals of govern ment, however, are upheld by an active Liberal opposition, which agitates its cause in Congress and in the press. and has best furthered its aims by secularizing and reorganizing publicedueation.