Dr. German Schreiber, who succeeded Dr. Augusto Leguia as Minister of Finance, is well equipped for the duties of his important office, having had exceptional experience in financial administration previous to his appointment to the post. This department of the government supervises the national budget. Orders issued by the Ministers of State on the national treasury can be paid only with a warrant drawn on the Minister of Finance, this document showing the number of the corresponding item in the budget, or containing the supreme decree authorizing the payment. Each _Departamento_ keeps its own accounts, which assures regularity in the expenses of the different prefectures. The reorganization of the custom house service has received the especial attention of the Finance Minister, with satisfactory results. Under the head of Government and Home Affairs, Dr. German Arenas supervises legislative matters, public order, political administration, government buildings, etc., and the postal and telegraph service. The development of industry and wealth has naturally given rise to greater ambition among the laboring classes, and the struggle between capital and labor has brought about occasional _huelgas_, or “strikes,” in the larger cities; but the authorities have been able to avoid any violent attacks on property, and public tranquillity has been easily restored. The police system, reorganized and reinforced by a large number of mounted troops, is better prepared than ever before to maintain respect for the law. [Illustration: MONUMENT TO BOLOGNESI.] The modern improvements made in the postal service by the present executive have been demanded as the result of a remarkable increase in correspondence passing through the various post offices of the country. During the past year, the general post office has increased its capacity and new branches have been established in numerous districts of all the Departamentos of the republic. Great obstacles have been overcome in placing the post office on the present high plane of efficiency. The vast extent of territory traversed by mountain ranges and cut by immense cañons has made the question of postal delivery an exceptionally hard problem to the government, as the expenses of maintaining the service were formerly far in excess of the receipts. Owing to the expansion of trade, the increase of population, and the careful attention lately given to this branch of the administration, the post office has shown a surplus of receipts over expenditures during the past three years. Peru is a member of the Universal Postal Union, and its relations with the post offices of foreign countries are maintained with great credit to its government. The issue of post office orders and the service of parcels post have been established between Peru and the United States, England, and Bolivia, arrangements being under way to extend these advantages to Italy, Japan, and Chile.