o argue the matter. James G. Elaine, then
secretary of state, refused peremptorily to listen to any explanations.
In the end Chile paid an indemnity of $75,000 as asked, but the affair
left bad feeling in its train.

President Jorje Montt.

The close of the revolution against Balmaceda left the government of
Chile in the hands of the _junta_ under whose guidance the military and
naval operations had been organized. Admiral Jorje Montt had been the
head of this revolutionary committee, and he acted as president of the
provisional government when the administration of the country changed
hands after the victory of the Congressional party. An election was now
immediately ordered for the choice of a president of the republic and
for representatives in the senate and chamber of deputies. Admiral
Montt, as head of the executive power, stanchly refused to allow
official influence to be brought to bear in any way in the presidential
campaign. The great majority of the voters, however, required no
pressure to decide who was in their opinion the man most fitted to
administer the affairs of the republic. For the first time in the
history of Chile a perfectly free election was held, and Admiral Montt
was duly chosen by a nearly unanimous vote to be chief magistrate for
the constitutional term of five years. The senate and chamber of
deputies were formally constituted in due course, and the government of
the republic resumed normal conditions of existence. The new president
showed admirable tact in dealing with the difficult problem he was
called upon to face. Party feeling still ran high between the partisans
of the two sides of the recent conflict. Admiral Montt took the view
that it was politic and just to let bygones be bygones, and he acted
conscientiously by this principle in all administrative measures in
connexion with the supporters of the late President Balmaceda. Early in
1892 an amnesty was granted to the officers of the Balmaceda regime, and
they were freely permitted to return to Chile without any attempt being
made to molest them. The first political act of national importance of
the new government was the grant of control to the municipalities, which
hitherto had possessed little power to direct local affairs, and were
not even permitted to dispose of the municipal revenues to any important
amount without first obtaining the consent of the central government.
Almost absolute power was now given these corporation