General Ramón Castilla, who was elected president of Peru in 1845, accomplished a great deal in promoting the welfare of his country. Possessing extraordinary administrative ability, he reorganized the various branches of public service, suppressed the taxation of the Indians, definitely abolished slavery, advanced education and undertook the construction of public works of great importance. During this administration, the first railways in Peru were built, between Lima and Callao (in 1848), also between Lima and Chorillos, and the first telegraphic service was established. The finances of the government were regulated by subjecting the national expenditures to an estimate sanctioned by Congress. Municipal improvements were encouraged throughout the republic, and the prefects of the various departments vied with one another in the construction of good roads, commodious public buildings and other progressive enterprises. Steam navigation, which had been initiated between Valparaiso and Callao in 1840, was extended to Panamá, the service being increased. The navy was reorganized and five new war vessels, operated by steam, were added to the squadron. The wealth of the republic increased in consequence of a great demand for the guano of the Chincha Islands, which became a source of immense revenue, and the government was thus enabled to arrange for the payment of the interest on the national debt:—a loan of one million two hundred thousand pounds sterling had been made in London in 1822, and another of six hundred thousand pounds in 1825, both at six per cent, which with the accumulated interest made a debt of nearly four million pounds. Negotiations were concluded by which the interest on this sum could be paid regularly. [Illustration: THE MORRO OF ARICA.]