In the political world the tradition of the _pelucones_, of a strong tutelary authority, is dying; in the social world the oligarchy is losing its ancient privileges before the progress of the middle classes. Balmaceda, the founder of schools and colleges, the champion of all liberties, realised this national transformation. Chili was the scene, after the political revolution of 1891, of a social revolution, a warfare of castes, a bloody conflict between the feudal overlords and a Third Estate formed in the schools, liberal and industrial. Two parties, radicals and democrats, are organising themselves for the battles of the future. "The radical party," writes an observer, "is composed of the fervent enemies of the clergy and a {179} great part of the youth of the middle class, which combines with its religious hatreds a certain degree of dislike of the wealthy and respected classes."[5] Señor Edwards believes that this socialistic tendency, which is predominant among the radicals, "constitutes a serious danger for the future." The democratic party, like the English labour party, and the united socialists of France, is a working man's party. The revolution of 1891 was directed by the bankers. After the war of the Pacific the Chilian oligarchy was dissolved; it formed itself into a plutocracy, without austere traditions, which is predominant in the Parliaments and is ambitious to seize the reins of government. Balmaceda would never give way before the "new men"; as an aristocrat he was the enemy of the merchants. Portales founded a society of patricians, but the liberal president could not organise the democracy he dreamed of. The financiers united with the great families before the threat of formidable strikes, and the intellectual elevation of the middle class, bankers and landowners and property owners grouped themselves in a more accessible oligarchy, much after the pattern of the oligarchy of the United States. Balmaceda was the last representative of the great Chilian tradition, of the tutelary oligarchy which led and educated the people and distrusted the plutocracy. [1] See J. Bañados Espinosa, _Balmaceda, su gobierno y la revolucion de 1891_, vol. i. pp. 455 _et seq_. [2] Said by Don Juan Enrique Tocornal, a Chilian politician. [3] Alberto Edwards, _Bosquejo historico de los partidos politicos chilenos_, Santiago, 1903, p. 116. [4] Cited by Vicuña-Subercasseaux in his study of Balmaceda. See _Gobernantes y Literatos_, Santiago, 1907, p. 64. [5] Edwards, as cited. {180} CHAPTER III BRAZIL: THE EMPIRE--THE REPUBLIC The influence of the Imperial _régime_--A transatlantic Marcus-Aurelius, Dom Pedro II.--The Federal Republic.