equaled $1 in silver; a year later, 29 paper dollars were necessary to obtain a silver dollar, and at this exchange the various branch offices of the national treasury admitted payment in paper to the extent of fifty per cent. The public and railroads insisted on $30 paper for one silver dollar. Damaged or partially torn paper money is refused everywhere; the loss on mutilated $100 and $500 notes is comparatively heavier than on small notes. The Government has caused $14,675,000 of fractional notes to be printed and circulated, in order to facilitate current dealings. In December there was intense excitement in Lima and Callao, owing to the paper currency continuing to decrease in value. Disorders resulted in the market-places and the streets, and a panic occurred. The streets had to be patroled in Lima, and squads of soldiers stationed in the markets to prevent acts of violence against those who refused to sell for paper money. The money-changers in Lima kept their places closed in consequence of the violent manner in which they were spoken of at a meeting in the plaza. When a crowd formed around the palace, President Cáceres spoke from a balcony, and assured all present that the Government was doing everything possible to remove the causes of alarm and re-establish confidence. In the main market in Lima there are 1,800 stalls. Of this number 1,300 were closed on December 15. The steeples of the churches were occupied by pickets to prevent the rioters making a call to arms with the bells, and all liquorshops and hotels were closed by the police. The banks were also closed. While a meeting was held in the main square, pickets of armed police were stationed at the four corners of the square. One of these pickets was molested by boys and drunken men, and the police fired, wounding several boys. Two days prior to these events not a single money-changer or business house in Lima was selling silver dollars for paper money. In Ascope, in the north of Peru, trouble was feared, as the business houses all refused to sell for paper money. In Trujillo holders of notes were in a panic. Nearly all the retail stores were closed, and the bakers stopped baking because the holders of flour refused to sell except for silver dollars, while the bakers only held notes, and the greater part of these were in halves. The prefect exercised great vigilance, and succeeded in borrowing $40,000 gold notes with which he was changing the half-notes for the poor people. Business men in Cerro de Pasco rejected banknotes, doing all their business in private notes payable on presentation. Disorders occurred in Huancavelica, and the acting prefect and the treasurer were murdered.

The budget for 1887-'88 estimates the revenue at $16,183,674, and the expenditure at $13.632,386.

During the first six months of 1887 the revenue from customs was $2,300,000 short of the estimate, and the cash collected was absorbed

by the expense of maintaining the army in a state of efficiency. At Callao the amount of duties collected only reached $1,216,728, while $2,000,000 had been calculated upon. Salaries of Peruvian consuls were reduced to fifty per cent. of the fees collected, except that of the consul at Panama.

In December the import duties were raised five per cent. ad valorem, the product to be applied to a gradual withdrawal of the paper currency.

Another decree, simultaneously issued, ordered that Peruvian consuls issuing or viséing bills of health be allowed to charge only one cent a ton up to 500 tons, at the port of departure, and half a cent at the large ports where the ship may call.

The silver exportation to Hamburg through the port of Callao amounted in 1886 to 5,789,276 kilograms, and in September, 1887, there were indications that it would be considerably exceeded.

In November opium was declared a Government monopoly, and the right to import and sell it was offered for sale.

Boundary Question.-In September an understanding was arrived at with reference to the settlement of the boundary question between Peru and Ecuador. The Peruvian minister at Quito signed an agreement with the Minister of Foreign Affairs of Ecuador, subsequently ratified by the Congress of the latter, submitting the difference to the arbitration of the Queen-Regent of Spain. In the event of her declining, either France, Belgium, or Switzerland is to be requested to assume the task.

A Military Revolt.-At 11 P. M. on September 27, a mutiny broke out at Trujillo, in the barracks of the Zepita battalion, and two companies escaped, after mortally wounding the captain of the guard, and killing the sentry. It was said that the soldiers mutinied because they received only two paper dollars a day as ration-money. The movement was led by a sergeant known to have been a criminal of the worst kind. The mutineers went to the barracks, but the lieutenant on duty stood bravely to his post and resisted a heavy fire with great skill, until he was re-enforced by the subprefect of police. During this time some of the mutineers had also attacked the hospital, but they were driven off. These two defeated parties subsequently went to the mountains. The authorities followed them about three leagues into the country, where a fight took place in which several were killed. In the square at Trujillo fifteen or twenty persons were killed or wounded. It was said that the mutiny would not have taken place if the soldiers had been paid regularly. Their pay was in arrears, and no one would trust them. The taxes are paid in silver dollars; this the soldiers see, and therefore they object to being paid in paper money. The sergeant who led the mutiny was caught, tried by court martial, and shot. He confessed having committed fourteen

murders, and gave the names of his victims. Fourteen of the mutineers were shot.

Posts and Telegraphs.-In 1885 the Peruvian post-offices forwarded 865,823 letters and postal cards, and 386,141 newspapers and sample packages. There were in operation in the republic 2,211 kilometres of telegraph line, the number of offices being 34, dispatching 94,214 private, and 16,455 Government messages.

Railroads. There are in operation 2,600 kilometres. Two railroads run from Lima to the higher Andes. One line begins at the coast at Mollendo, south of Callao, and, running by Arequipa, crosses the crest of the Andes, and terminates at Lake Titicaca, 12,800 feet above the sea. The other starts from Lima itself. It was projected with the intention of piercing the crest of the Cordilleras at an elevation of 15,645 feet above the sea, and thence descending to Oroya, a plateau between the main ranges. Its ultimate object was to afford a route to the fertile districts on the eastern slopes of the Andes. As yet it has only reached a village called Chicla, 12,200 feet above the sea, its progress having been stopped by the war between Peru and Chili. In November it became apparent that the congressional action respecting the southern railways, and those of Chimbote and Salaverry would probably give rise to serious complications. According to stipulations with the Government, the southern roads, when completed, were to be turned over to the State by the contractor, Henry Meiggs, or by his successors and executors. The roads have not been completed, the contractor alleges, from the fact that the necessary money has not been furnished by the Government, and it was also said that a large sum for freight and passages was due from the Government. In spite of the arguments and proofs adduced, Congress, led by the deputies from the south, ordered the executive to assume the administration of these roads, as well as those connecting Salaverry with Trujillo, and leading from Chimbote to the interior. Prior to the promulgation of this law, the American, British, and German legations at Lima energetically protested against such an assumption of dictatorial power by Congress, basing their protest on the fact that, as the contracts were legal and bilateral, there are two parties to be heard, and that such hearing must be given before the proper legal tribunals. Despite these formal protests, the Government adopted vigorous measures to carry out the orders of Congress. The railway from Salaverry to Trujillo, and the fine wharf at the first-named place, constructed for the Government under contract, since under the control of E. C. Dubois, an American citizen, by virtue of a concession granted by the Government of Iglesias, were in December declared forfeited. The State is also to assume possession of the southern lines.

Early in October a commission of engineers and mining experts appointed by the Peruvian bondholders in London, arrived at Callao.

They were to examine the railways, and make a report regarding the capacity of the lines in question, and the probable increase of business in case of their being extended as originally planned. In December the commission had concluded its labors on the Oroya Railroad and at the Cary de Pasco mining district. The commission next proceeded to examine the Pacasmayo and Chimbote railroads, and to travel through the rich sugar-producing country in the immediate neighborhood of those lines. After this work is accomplished, an inspection will be made of the southern railroads, and the bondholders will be thoroughly informed as to the prospects of reimbursement from all of these undertakings in which their money has been employed so liberally.

The Grace-Aranibar Contract.-Toward the close of 1886, Mr. Grace, of New York, as the representative of the European bondholders of the Peruvian debt, made a proposal to the Government of Peru for the cancellation of part of the latter and the extension of the railroads. In March, 1887, Mr. M. P. Grace, of the firm of W. R. Grace & Co., New York, in pursuance of this plan, arrived from Lima and left for London, accompanied by Dr. Araníbar, the Peruvian Commissioner. The result of the trip was an arrangement with the committee of bondholders in June, since accepted by the Government at Lima, but still awaiting ratification by the Peruvian Congress. The chief clauses of the contract that are likely to be ratified with some modifications are the following: The Peruvian Government relinquishes to its creditors for sixty-six years 763 miles of its railroads, which the latter engage to extend as stipulated. It furthermore relinquishes to them all the guano the Government still owns on the coast, and all that may be discovered, for a term of sixty-six years. As long as the railroads and guano do not net, together, the sum of £420,000 during two consecutive years, the Government agrees to set aside the annual sum of £120,000 out of the customs revenue of the ports of Mollendo and Payta to cover the deficiency. Peru also granted the creditors forever the coal along the Chimbote-Huaraz Railway, but while doing so retains 15 per cent. of the net profit that those coal deposits shall produce. Another concession grants them the exclusive right of exploitation for fifty years of the Huancavelica cinnabar-mines, 15 per cent. to be paid the Government out of the net profits while the grant lasts. Next, the perpetual privilege is conceded the creditors to work all the gold, silver, copper, and lead mines, and other mineral deposits, the Government only to collect the usual tax of $30 per annum, to which every mine in Peru is subject. A grant is made them of 1,800,000 hectares of arable land, and each family of settling immigrants is besides to receive 180 hectares under contracts with the creditors' representatives. The Government finally concedes them the privilege of free navigation on the rivers and

lakes of the republic. The creditors are to have the right of at once founding a bank of issue at Lima, with the exclusive privilege for twenty-five years of issuing bank-notes, this circulation to be backed by 33 per cent. cash. The syndicate obtains 75 per cent. of the net profits of the bank, after paying its shareholders 9 per cent. per annum. The bank is to manage the home indebtedness of Peru, to secure which the Government agrees to set aside annually 8 per cent. of the customs revenue collected at Callao, other revenue designated in section 22 of the agreement, and its share of 25 per cent. of the net profits of the bank after payment of the 9 per cent. Certain privileges exempting the property of creditors from taxation are stipulated in addition to those enumerated. In return, the bondholders agree to carry out the railroad repairs and constructions stipulated, to pay the Government 20 per cent. of the net earnings of the railways, and 25 per cent. of those of the guano deposits, after the representatives or committee shall have received therefrom the sum of £420,000. The bondholders agree to surrender 50 per cent. of the bonds they hold, the total outstanding debt amounting to £32,000,000; the remaining 50 per cent. the committee take their chances to recover from Chili as the owner of the ceded province of Tarapacá. The bondholders further agree to advance the Government at once £400,000, payable in thirty consecutive monthly installments, out of which the Government engages to pay £6,000 a month toward defraying interest on the internal debt, and transportation over the railroads of military and civil officers, material, and mails. When the terms of this agreement were made known in London, the secretary of the Chilian Legation in that city wrote a letter to the "London Times,"

in which he warned Peruvian bondholders

against any illusions in connection with the one

half of the Peruvian bonded debt and the conquered province of Tarapacá, so far as Chili was concerned. He referred to the treaty of peace between Chili and Peru, by the terms of which the conquered province of Tarapacá was ceded without Chili's assuming any responsibilities whatever that might be construed as if Chili had considered, or ever would consider, them pledged to Peruvian bondholders. He also reminded the latter that the highest English and French courts of law have declared that the bonds, however worded, constitute no lien whatever on the territories acquired by Chili by conquest, or on the stocks of guano and nitrate. Considerable opposition also came from southern Peru, and neither the Government nor Congress felt prepared to advance further in the matter, which was left in abeyance pending a modification of the terms so as to satisfy Chili, and the report from engineers sent out by the bondholders upon the actual state and value of the Government railroad system.

Commerce. The import of merchandise into Peru in 1884 amounted to $11,064,744, while

968,480 461,726

798.577

717,968

1887 in July, 1887, the Peruvian Government adThe South American Sanitary Congress.-Early dressed a note to those of Chili, Brazil, the Argentine Republic, Uruguay, Paraguay, Bolivia, Ecuador, Colombia, Venezuela, Meximedical representatives to a Sanitary Congress co, and Central America, inviting them to send to be held at Lima, and to open its sessions on Jan. 2, 1888. The purpose of the meeting was to prepare measures of protection against the which for the first time invaded the westintroduction and propagation of epidemics, ern coast of South America during 1886, and, if possible, arrive at an understanding on the subject of quarantine regulations. All the governments addressed promised to send representatives. The idea which prompted this action is all the more commendable as internasuffered severely from the restrictions resorted tional passenger traffic, trade, and mail service to in 1886 and 1887. The Congress opened on January 2, although only the delegates from Meanwhile, a Sanitary Convention had been Peru, Ecuador, and Bolivia were present. signed in December at Rio de Janeiro by the from Brazil, Uruguay, and the Argentine ReSanitary Convention composed of delegates public. The main causes agreed upon were the following:

Yellow fever, cholera morbus, and the plague are considered pestiferous are clothing, cloth, rags, matthe three exotic pestilences treated of, and the articles tresses, and objects of personal use, also the boxes containing them, and fresh hides. No other articles are to be considered as suspected. Each party undertakes to found a lazaretto and to establish in time of pestilence at least one floating hospital. Quarantines or other sanitary measures undergone in the lazaretto of any of the three powers are valid for all the others. The closing of ports to vessels from abroad is prohibited, and no vessel is to be driven away, no matter what disease prevails aboard. Packets and other be supplied with a steam disinfector, medicines, and steamers carrying emigrants must have a doctor and disinfectants, keeping, besides, regular books of record. A corps of ship sanitary inspectors is to be established by each power, to embark in vessels, fiscalize the execution of the sanitary provisions, and report on all occurrences during the voyage. Strict quarantine is limited to ten days for yellow fever, eight for cholera, and twenty for Eastern plague, and the time may be counted from the date of last case on board, if duly verified.

A Charitable Bequest.-A worthy old Peruvian, José Sevilla, during the last years of his life spent most of his time in the city of New

York. By a will executed on March 20, 1885, in New York, he left the bulk of his estate, valued at nearly $4,000,000, for the foundation of a charitable educational institution for children. Mr. Sevilla authorized the executors to locate the home anywhere in the United States, but if they found it impossible to incorporate such an institution in this country the gift was to be transferred to France. The institution was to be for the benefit of American and Peruvian children.

PHARMACY. The continual enactment of more stringent laws requiring the selection of competent persons for the dispensing of medicines is shown by the increased demands for pharmaceutical education. The publication of new and better journals likewise indicates an improved condition of the art.

Colleges. The trustees of Cornell founded a School of Pharmacy on March 7, 1887, in connection with the University at Ithaca, N. Y. About the same time a Department of Pharmacy was added to the University of Kansas in Kansas City. During the year special schools for this branch have been inaugurated at Howard University, Washington, D. C.; Purdue University, Lafayette, Ind.; and at Vanderbilt University, Nashville, Tenn. A Pharmaceutical Department has recently been established in connection with the Minnesota Hospital College at Minneapolis, Minn.

Legislation. Acts regulating the sale of poisons in Alabama, Georgia, and New York have come into force since the first of the year, also pharmaceutical laws have been enacted in Alabama, Colorado, Dakota, Idaho, Montana, Nebraska, and Pennsylvania. So that at present proper measures regulating the practice of pharmacy are in active operation in all of the States excepting the following: Arkansas, California, Florida, Indiana, Louisiana, Mississippi, Nevada, Oregon, Tennessee, Texas, and Vermont. Certain of the Territories are still without laws.

Associations. The thirty-fifth annual meeting of the American Pharmaceutical Association was held in Cincinnati, Ohio, on September 5, and continued four days. Several hundred members were present and upward of seventy new members were elected. In order to expedite the work of the Association and render it more efficient, it was reorganized and formed into four sections as follows: 1, scientific papers; 2, commercial interests; 3, pharmaceutical education; 4, legislation - each of which elects its own chairman and secretary. Subsequent to this action, the National Retail Druggists' Association, no longer being necessary, was merged into the parent organization. The admission-fee was abolished and hereafter only annual dues will be required. Besides the scientific papers read and discussed, various reports were accepted, notably that on the National Formulary," which provided for the speedy publication of the manual containing the accepted formulas. John U. Lloyd of

66

Cincinnati, Ohio, was elected president, and John M. Maisch, of Philadelphia, Pa., continued as secretary. Detroit, Mich., was chosen for the meeting-place in 1888, and the date September 3. The Florida State Pharmaceutical Association was organized at Jacksonville on June 8, 1887, and local_associations at Fort Worth and San Antonio, Texas, during the year.

Trade Associations.-The twelfth annual meeting of the Wholesale Druggists' Association was held in Boston, Mass., beginning its sessions on August 23. Reports on adulterations, credits and collections, paints, oils, and glass, the drug market, commercial travelers, transportation, and fraternal relations were presented by the committees appointed to consider those subjects and discussed by the members. The special committee on mutual fire insurance reported that under the auspices of the Association there had been established "The Druggists' Mutual Fire Insurance Company," which was organized in June, under the laws of Pennsylvania, at Philadelphia. Offerings of nearly $1,000,000 insurance were received almost immediately, and success is assured. It will afford an enormous saving to the wholesale druggists of the country, and the maintenance of an important competitor of the old-line companies, and some exemption from their tyranny. E. Waldo Cutter, of Boston, Mass., was chosen president, and A. B. Merriam retained as secretary for the year. Saratoga Springs, N. Y., was selected as the meeting-place for 1888.

Trade Relations.-Under the direction of the National Wholesale Druggists' Association the contract plan between manufacturers and jobbers is becoming more perfect, while among the retailers the entire absence of any concerted action is shown by the increasing tendeney among pharmacists, especially in large cities, to cut prices on proprietary articles.

Literature. The books of the year include "Text Book of Therapeutics and Materia Medica," by Robert T. Edes (Philadelphia); "Manual of Pharmacy and Pharmaceutical Chemistry," by Charles F. Heebner (New York); "Handbook of Pharmacy and Therapeutics," by James E. Lilly (Indianapolis); “Drug Eruptions," by P. A. Morrow (New York); "Pharmaceutical Problems and Exercises in Metrology, Chemistry, and Pharmacy," by Oscar Oldberg, and "A Laboratory Manual of Chemistry," by Oscar Oldberg and John H. Long (Chicago); "Handbook of Materia Medica, Pharmacy, and Therapeutics," by S. O. L. Potter (Philadelphia); and "The Principles of Pharmacognosy," translated from the German of Flückiger and Tschirch by Frederick B. Power; also, new editions of Č. L. Lochman's "Dose and Price Labels of all the Drugs and Preparations of the United States Pharmacopoeia" (Philadelphia); John M. Maisch's Organic Materia Medica"; and F. E. Stewart's Quiz-Compend of Pharmacy."

"The Pharmaceutical Era," under the edi