When President Pardo assumed office, he proceeded, with energy and decision, though without any ostentatious display of reform, to carry into effect the policy which he had adopted, and which was declared in his inaugural message. The keynote of his administration is industrial and educational progress, and at no time in the history of Peru have its public institutions and private enterprises been in a more advanced and promising condition. Toleration in religion, justice in legislation, and an earnest endeavor to promote the well-being of the country, morally and materially, have been exemplified in the attitude of President Pardo’s government throughout the four years that he has guided the destinies of the nation. In foreign relations, Peru has attained a more honored position than ever before. The nation was represented with distinction in the Pan-American Conference at Rio de Janeiro in 1906, and at the International Conference of the Hague in 1907. In home government, in military matters, in the departments of justice and public instruction, in finance, and in the development of public works of enormous benefit to the country, the results of a wise and careful direction of executive authority are to be seen. Education has been reformed and established on a uniform and democratic basis, the annual appropriation of funds for this purpose having been increased under the present government to three times the amount formerly set aside for its maintenance; it now amounts to nearly one-tenth of the budget. The postal service has received especial attention, and improvements have been made which render it one of the most efficient branches of public administration. The reconstruction of the national navy has been effected during the present term, the new cruisers, _Grau_ and _Bolognesi_, which arrived in 1907 from the European shipyards, being handsome modern battleships.