Don Manuel Pardo, Peru's first civilian president, had already been constitutionally selected as Balta's successor, and the latter was within a few days of the end of his term, when a terrible catastrophe happened. Among the poor relations whom the luckless president had preferred to positions in the army were four brothers named Gutierrez--the sons of a muleteer near Arequipa. Suddenly one brother appeared at the head of his battalion and took possession of the great square in the centre of the capital, while another forced his way into the president's study, revolver in hand, arrested the chief of state, and locked him up. Warned in time the president-elect escaped on board a man-of-war, and the eldest Gutierrez was proclaimed supreme chief. The people of Lima soon recovered from their stupefaction and a scene of terrific street-fighting followed. One of the conspirators was shot by the mob as he went to the railway station on his way to Callao. His brothers retaliated by murdering the captive president, but they soon fell before the rifles of the populace. Their bodies were hung up in the cathedral by the infuriated people, while the president-elect returned and assumed his functions. Pardo's four years were one continual struggle against impending bankruptcy. Though he brought some order into public accounts, it was only by all sorts of expedients that he managed to keep up interest payments. He easily suppressed an insurrection led by Pierola in 1874; his intellectual and moral force united about him the educated and property-holding classes in a party which survives to this day; and he left the reputation of having been the best president who ever ruled Peru. However, no efforts could avail more than merely to put off the evil day of reckoning. The rapid exhaustion of the guano deposits precipitated the disaster. Payment of interest was suspended in 1876 and the same year Pardo turned over the government to General Prado with the currency at fifty-per-cent. discount and Peruvian bonds selling in London at twelve. CHAPTER VII THE CHILEAN WAR AND LATTER-DAY PERU