dispute with Bolivia respecting the Acre
territory, on the settlement of which Bolivia gave up all claims to
Acre, a district embracing about 73,000 square miles, in return for a
surrender of about 850 square miles on the Madeira and Abuna Rivers, 330
square miles on the left bank of the Paraguay River, and a cash sum of
10,000,000 dollars for the purpose of constructing a railway in the
borderland of the two countries. Subsequently Peru disputed the claim of
Brazil to the Acre territory, and this, no doubt, forms a matter for
future arbitrators to settle. The Presidential election raised Dr.
Affonso Penna to the head of the State in 1906, since when Brazil has
been steadily engaged in strengthening its financial position and in the
development of its internal resources.

CHAPTER XXII

THE INDEPENDENCE OF SPANISH AMERICA

Having followed the course of the Brazilian fortunes from the elevation
of the province to a kingdom, from its promotion to an Empire, and from
its Imperial status to its modern Republican condition, it is necessary
to revert again to the Spanish-speaking territories of the Continent.

It must be admitted that the epoch that immediately followed the war of
liberation was one of strife and bitter disillusion. A certain number of
the leaders had foreseen the chaotic phase which had necessarily to be
undergone before the benefits of independence and enlightenment could be
enjoyed. These, however, were restricted to the very small intellectual
minority. The great bulk of the population of the late provinces, now
nations, had anticipated nothing of the kind. In their eyes the period
of transition had been pictured as fleeting and as of no account. It
had, indeed, been popularly considered as but a step from a condition of
oppression and dependence to that of complete freedom and
self-government.

It was not long before the fallacy of all such theories was shattered.
Indeed, the very earliest periods of independence were ominously
prophetic of what Spanish South America was destined to suffer before it
emerged from the chaos of blood and strife, and before its various
nations were enabled to stand firmly on their own feet.

In some respects, but only in some, South America, freed from the
Spaniard, resembled the ancient Britain deprived of its Roman rulers and
garrison. It is true that the Spanish army had been forced, struggling,
from the Continent by means of battle and blood, and that the Ro