hbourhood of the encampment or head-quarters of the
toqui, one on the scite of the old fort of Puren, and the other on the
borders of the marshes of Lumaco, which he garrisoned with the greater
part of a reinforcement of troops which he had just received from Peru.
He sent the remainder of these in 1597 to the province of Cujo, where
they founded a new city, called San Luis de Loyola, which still subsists
in a miserable condition, though placed in a very advantageous
situation.

The fort of Lumaco was soon afterwards taken by storm, by the toqui in
person, who gave orders to two of his officers to reduce that of Puren.
In ten days they reduced the garrison to the last extremity, but had to
desist from the enterprise by the approach of a reinforcement under the
command of Pedro Cortes, a Spanish officer who acquired great reputation
in the Araucanian war. The governor Loyola arrived there soon afterwards
with his army, and gave orders to demolish the fortifications and to
remove the garrison to Angol, lest it might experience a similar fate
with what had so recently happened to the fort of Lumaco. He then
proceeded to Imperial, Villarica and Valdivia, the fortifications of
which places he carefully repaired, to secure them against the
increasing strength of the enemy, and then returned towards the Biobio
under the security of an escort of three hundred men. As soon as he
thought himself in a place of security, he ordered back the escort,
retaining only along with himself and family sixty-two half-pay officers
and three Franciscan friars. Paillamachu had secretly followed and
watched all the motions of the governor, and concluded that he had now
found a favourable opportunity to attack him. Finding him accordingly
encamped in the pleasant valley of Caralava, he attacked him with a
select band of two hundred Araucanians, on the night of the 22d November
1598, and slew Loyola and all his retinue.

It would appear that Paillamachu had formed confident hopes in the
successful issue of this bold enterprise, and that it had been long
concerted: as, in consequence of his instructions, the whole provinces
of the Araucanian confederacy, and their allies the Cunches and
Huilliches, were in arms in less than forty-eight hours after the
slaughter of Loyola. In the whole of that country, from the Biobio to
the archipelago of Chiloe, every Spaniard who had the misfortune to be
found without the garrisons was put to death; and the citi