Bolivia’s loss in the war with Chile was irreparable, depriving it of all coast territory and an outlet to the sea. It now occupies the unique position of being one of two inland countries in the sisterhood of South American Republics. After the war Chile took possession of the long strip of desert bordering on the Pacific, which furnished Bolivia access to the ocean and direct communication with the outside world. The territory is a rainless region, devoid of vegetation, but beneath its surface are nitrate deposits sufficient to supply the world, and its acquisition made Chile the richest country on the globe, in proportion to its population. It derives from that source about 90,000,000 pesos, equal to $30,000,000 United States currency, or $8.50 per capita, annually. The source of this enormous revenue has become the permanent possession of Chile. Bolivia has apparently abandoned the idea of pressing further claims for readjustment of questions growing out of the war, and is endeavoring to make the best of a bad situation by developing the resources of her remaining territory and promoting her industrial interests. In 1905 she celebrated a treaty of commerce and amity with Chile, which provides among other things for the building of a system of railroads through the provinces of Tacna and Arica, thereby giving to Bolivia access to Pacific ports, providing means of communication and facilities for transporting her products to the coast, as well as to ports of entry. Bolivia also has a large scheme of railway-building of her own, some of the more important branches of which will connect with the lines built by Chile, extending from the coast across the pampa. It was the announcement of this treaty agreement that caused the last vigorous protest by Peru against Chile’s course in the Tacna and Arica question. During the administration of the phlegmatic but conscientious Domingo Santa Maria, who was president from 1881 to 1886, Chile passed through an important epoch, the pivotal point in her national history. It includes the war with Peru and Bolivia, and an international complication with the Argentine Republic in which war was averted only by a diplomatic handling of the question.