cannonading lasted, nine-tenths of it being on the water-front and belonging to foreign merchants. The Spanish fleet then withdrew, although the original question remained exactly as at the outset. [Illustration: VIEW OF VALPARAISO.] An indirect result of the common danger of the Pacific nations was an agreement in 1866 between Chile and Bolivia as to their boundary on the coast. The line was fixed at the 24th degree, but Chileans were allowed to continue to exploit guano and nitrate as far north as the 23d--an arrangement which gave their country substantial claims in a region which shortly proved a marvellous producer of ready money. The German colonisation in the South continued on an increasing scale during the late sixties; free land was given to immigrants and their passage paid. The Araucanians, resenting the influx of whites so near their own territory, began to make trouble, and a war went on through 1868, 1869, and 1870, which finally resulted in their suing for peace. A line of forts kept them in order and they ceased to be a disturbing factor in Chilean affairs. Perez had been re-elected in 1866, and his second term marks the beginning of a new era in Chilean politics. The dynamic elements had finally become stronger than the static, and the pressure for amendments to the Constitution could no longer be resisted. But in the forty years since Portales had fixed the form of the government in its aristocratic mould, political traditions had hardened into habits. No really radical changes had any serious chance of success. A measure forbidding the president to be re-elected was passed, and a desperate fight made to extend the suffrage to all who could read and write. Though favoured by President Perez the last failed to carry, and the most the liberals could obtain was a law reducing the property qualification.