One of the first acts of Dictator Prado was to form an alliance with Ecuador, Bolivia, and Chile to combat the aggressive designs of Spain. After an engagement between the allies and the Spaniards at Abtao, in the Chiloe archipelago, the latter proceeded to Valparaiso, which they bombarded, thence going on to Callao, where after a five hours’ fight they were defeated and obliged to withdraw, never to return. Chile expressed the greatest admiration for the bravery and patriotism shown by the Peruvians, the Chilean minister in Lima writing to his government in praise of “the noble and valiant nation.” The city of Santiago presented President Prado with a sword, in token of appreciation. Though the administration of Dictator Prado was liberal and his authority mild, the spirit of the nation was now opposed to an unconstitutional government, and in 1868 he abdicated in favor of General Canseco, who immediately convoked Congress to elect a new president. The choice fell on Colonel José Balta. His administration is noted for the extensive improvements made in public works during that period, from 1868 to 1872. The influence of militarism, which had been so powerful during the first days of the republic, gradually declined, as republican principles became better established and a younger generation grew up more zealous for the moral and material development of the country than for glorious records of the battlefield. General Pezet was the last of the heroes of Ayacucho who occupied the presidency. Colonel Balta was only eight years old when the victory of Ayacucho was won, and thus, born a child of the republic, he grew to manhood under conditions which enabled him to appreciate the needs as well as the accomplishments of the nation. He saw that, in order to realize the progress for which the people were so earnestly struggling, greater facilities of communication were indispensable, and he devoted his attention especially to the construction of important railways, their cost being defrayed with the product of the national loans of the years 1869, 1870, and 1872. These loans increased the foreign debt of Peru to thirty-two million nine hundred and fifty-four thousand pounds sterling, and the sales of guano were pledged as security for its payment. During this administration, the region of the Amazon, which had been opened up to traffic by General Castilla, was put in closer communication with the capital, explorations being made on the tributaries—Pachitea, Perené, and others. The city of Lima was beautified, a new iron bridge was built across the Rimac River, and a great industrial fair was inaugurated, the handsome Exposition Palace being built for the purpose. When his presidential term expired, in 1872, Don Manuel Pardo, who had founded the civil party in opposition to militarism, was elected his successor. A few days before President Balta was to retire from office, his Minister of War, Colonel Tomás