Inaugral address ... read at the opening of the National Congress, Santiago de Chile, June 1, 1921

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INAUGURAL ADDRESS

OF

His Excellency, Don Arturo Alessandri,
President of the Republic of Chile,

READ AT

THE OPEHING OF THE NATlOKiL CONGRESS,
SANTIAGO DE CHILE,

JUNE THE FIRST, 1921

POLICE DEPARTMENT PRESS OF SANTIAGO, CIIILR.

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INAUGURAL ADDRESS

OF

His Excellency, Don Arturo Alessandria
President of the Republic of Chile,

READ AT

THE OPENING OF THE NATIONAL CONGRESS, </ y f ^q^
SANTIAGO DE CHILE,

JUNE THE FIRST, 1921

ClAiU/^rfsJ^nfe (HU Vi

POLIOE DEPARTMENT PRESS OF SANTIAGO, CHILE.

PRESERVATION
COPY ADDED
ORIGINAL TO BE
RETAINED

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Bancrott Library

University of Californ(»

WITHDRAWN

FELLOW-CITIZEN 3 OF THE SENATE

AND HOUSE OF DEPUTIES:

I have arrived at this post of honour and responsibility
after an active and energetic electoral contest, the most ac-
tive, perhaps, recorded in the history of our country.

The result of this election does not represent the triumph
of a man, because, considering tne magnitude of the civic
contests of our era, the men within them are mere acci-
dents moved by the impulses of opinion, following ideals
and defending aspirations and programmes.

The political struggle and its results to which 1 refer obey
profound causes, which have their roots deep in our orga-
nization and which require to be brought forward in order
to find within them the courses which the administration
recently initiated must strive for and follow.

It is a palpably unquestionable fact that of late the coun-
try has been suffering from a lack of initiative, of effort and
of definite plan directed towards an ideal on the part of the
Government of the Republic.

Some political parties of tralitiounl importance, split
up into infinitesimal fractions for reasons proper to their his-
torical evolution, have been losing their objective, often for-
getting their ideals and programme, and this relaxation of
some organizations which should form the starting point from
which strong and definite courses are taken in democracies,
has been turning them towards anarchy and disorder which
have disturbed the tranquil and progressive march of public
affairs.

INAUGURAL ADDRESS

It is also an historic fact that there have existed inequa-
lities and privileges in our social system, since, whilst the
laws have been generous for many, they have not bestowed
on others all they had a right to expect as citizens of a Re-
public of equality and freedom, in which justice and right
alone should be the common measure for the great and for
the humble.

The economic forces of the country and their wise and
energetic development have not received all the attention
necessary in order to fortify those riches in such manner as
to concede equally the well-being derived from them to all
classes.

Primary instruction, which at last has received a vigo-
rous impulse from the ruling powers, and which will make
of our country an honoured and true democracy, must wait
many years before its influence is felt.

The national proletariat which represents an efficient,
economic factor and a social force of unquestionable value
and importance, has not hitherto been favoured by nil the
laws necessary for its protection and which arc to raise it
in its physical, moral and intellectual level.

This historic situation of our country, which is seen, is
felt and cannot be denied, has engendered an intense and
irresistible force ol reform and renovation.

We are spectators of a solemn moment of energetic and
definite evolution. The political and electoral movement to
which I have already referred, expressing these aspirations
of renovation and reform, represents this evolution, and the
fact eloquently.

I am glad to give my testimony to the honourable man-
ner in which the difficulties to which the presidential cam-
paign gave rise were solved and the ample liberty, abso-
lutely honest and sincere, which was allowed by the Grovern-
ment in the last elections of March; they are matters of sa-
tisfaction for our country and testify to the solidity of its
institutions, the love of order, and respect forlaw and jus-
tice which foreshadow days of gieatness and prosperity lor
our land.

INAUGURAL ADDRESS

These considerations, rapidly outlined, should serve as a
precise and sbllgatory indication for the orientation of the
defined and vigorous march which should and will be fo-
llow jsd by my administration.

Foreig,-ii: x*elatioiis

8ince taking charge of the Government, I have given ray
preferred attention to the cultivation of our foreign relations,
giving to them as is traditional in this branch of Chilian po-
litics, a frank and unalterable direction towards concord
and harmony.

The attitude of the Chilian Delegation to the League of
Nations has amply fulfilled the expectations of the Govern-
ment.

The commemoration of the fourth Centenary of the
Discovery of the Straits of Magallanes afforded an oppor-
tunity to various friendly powers to send special missions
representing them on this occasion, and the Government
has had the pleasure of duly entertaining them.

On this occasion His Majesty the King of Spain gave
proof of his affection for this country, which merits the due
recognition of the Government, by confiding his represen-
tation to one of the best known members of the families
reigning in that noble county.

The transfer of Presidential power in December last was
also an occasion for certain Governments to send special
mis«?ions which by their presence aided in solemnising the
new governmental period, and so laid us under the obli-
gation of expressing our sincere thanks.

It has been especially grateful to me to organise with the
co-operation of Congress, the Embassy bearing the expres-
sion of the affection of the Government and people of Chile,
to the Republic of Brazil in order to return the visit made
to us some time ago by the Minister of Foreign Affairs of
that country.

Our Embassy has in like manner returned the salutation
brought to us by the then Minister of Foreign Affairs of that
Republic of Uruguay, who is today its illustrious Presidentt

INAUGURAL ADDRESS

Our Minister has also made an official visit to the Re-
public ot Argentina on the occasion of the celebration of the
National Anniversary. The enthusiastic greeting which
these three countries have bestowed upon our Minister of
Foreign Affairs has been so spontaneous and so affectionate
that they merit the special gratitude ot the Government and
people of Chile. I comply with my duty in giving a public
testimony of our sincere thanks towards these three sister
countries, placing it on record that the expression of the
sentiments of loyal and profound friendship with which the
Government and peoples of the three countries have fa-
voured us, signify that these three great peoples, linked to-
gether by ties of a common origin, ideals and mutual moral
interests, are closely united with our own in carrying on
together the work of reconstruction indicated by the new
horizons opening before humanity and towards which the
aspirations of progress of all modern peoples are tending.

On July 28th of the present year Peru will celebrate the
Centenary of her independence, a glorious date which repre -
sents the emancipation of a people and its new birth to a life
of progress and liberty.

Chile, which brought to this great work of redemption and
of lite the precious tribute of the blood of her sons, is unable
to attend this feast of confraternity and American rejoicing
since it has not yet been possible to remove the obstacles
which keep her apart from the sister Republic, to whose aid
she has ever gone in times of difficulty.

AVe have not been able until now to obtain the fulfilment
of the Treaty of A neon, the execution of which hasnever been
opposed by our country, which is to day, as always, disposed
to honour the solemn promise which it signed.

It is the inflexible resolution of my Government to elimi-
nate the only foreign difficulty still pending, and, inspired
with .1 deep sense of international justice which recognises
the right of the inhabitants of Tacna and Arica to choose a
definite nationality tor their homes, it considers that the
moment has arrived to consult their will and accept their

verdict.

INAUGURAL ADDRESS 7

We shall adjust our conduct to the spirit of the Treaties
and to the sound principles which, as a result of the recent
war, have produced in p]urope the consolidation of political
groups that during many centuries lived in uncertainty with
respect to their true nationality. And, convinced that at the
same time as we execute a sovereign right, we shall, by so
doing,, lend valuable service to the great cause of continen-
tal concord, we shall carry into effect this resolution with
inflexible firniess, whatever may be the difficulties its exe-
cution may give rise to; certain that by so doing we shall
serve both our country and the South American continent,
since both require to dedicate themselves to the fertile life
of work, free from difficulties, broils and foreign conflicts
that produce anemia, anarchy and the weakness of the peo-
ples that suffer them.

Pan-Aniericanistn is a political ideal and a noble aspira-
tion of continental interest which my Grovernment will serve
with sincerity and energy. Unfortunately, in many South
American countries there still exist misunderstandings which
it is my ardent desire to see desappearin order that absolute
peace may reign, with cordialty and harmony in all the con-
tinent; to the end that, united in a sentiment of mutual love
and concord, our peoples may fight together for American
progress and for the good of humanity.

As it is my resolution to bring to bear on our part all the
assistance possible to dissipate the only shadow that still
obscures our horizon, I believe that the continent, recogni-
sing and respecting the sovereignty of the peoples, would
receive with joy the solution ofthe boundary difficulties bet-
ween Peru, Colombia and Ecuador,— an almost eternal liti-
gation which holds in suspense the definite sovereignty of a
vast and very rich territory of 683,611 kilometers in area.
The same may be said with respect to the differeuces exis-
ting between Bolivia and Paraguay.

Before the immense extension of the territories repre-
sented in these conflicts our frontier dispute shrinks into
insignificance, referring as it does to an area of scarcely
23,306 kilometers of sterile country of little value. The great

INAUGURAL ADDRESS

interests of the continent demand that all the peoples within
it should unite in a common aspiration to terminate these
disputes and bring about a reign of peace and prosperity.

The present organisationoftheMinistry of Foreign Affairs
does not fulfil the actual requirements of the Service, nor
does it afford any guarantee of efficient action within its
department of business. It is indispensable that the office
should be given the modern elements of study and investi-
gation, and the organisation necessary for this class of pu-
blic Avork which, withdrawn from the influences of internal
agitation, should have in charge the maintenance and de-
fence of the interests of the country abroad.

The Government proposes to give form to a project
which will fill the more urgently needed requirements and
for the despatch of which your cooperation will shortly be
requested.

The increasing commercial development which acora-
panies the progress of modern peoples renders it necessary
to lend preferential attention to our consular system in order
to render it capable of improving commercial relations and
maintaining the Government fully informed with regard to
the mercantile proceedings of other countries, whose expe-
rience may be of advantage to our own, at the same time
fomenting the interchange of products, which, at the present
(lay, is the basis of the energy and progress of nations.

The Government will tako opportune measures of an ad-
ministrative character in this respect, paying special atten-
tion to the information supplied by its consular functionaries
and will shortly submit to Congress certain projects desig-
ne I to improve the service.

Oolonizatioxi

That all the national land should contribute in a practical
and efficient form to the economic activities of the coun-
try is a matter of serious attention to the Government. Such
participation can bo effected by means of an adequate sys-
tem of colonization which, whilst increasing our produc-
tion, would give work to a vast number of our fellow citizens

INAUGURAL ADDRESS

who to-day are engaged in a bitter straggle for existence,
and wlio lose their best efforts for lack of means calculated
to insure their due efficiency as immediate factors in the
production of wealth.

For this purpose it is essential to complete as soon as
possible the survey of the land apropriate for colonization,
in order to determine once for all the boundaries of state
and private property, and that territory of doubtful owner-
ship.

Complementary to this necessary measure, and equally
imposed by the urgency of the case, is the constitution of a
special tribunal having proper powers for the rapid termi-
nation, once and for all, of th?.se uncertainties, and the pla-
cing on a sound basis of property in the southern provinces
of the Republic.

The Government has regarded with positive interest the
aspirations of the said provinces in regard to the consoli-
dation of control over their real property; it accepts and
identifies itself with the project presented in the year
1912 by the Commission of Senators and Deputies which de-
voted study to the matter and it asks you for its immediate
despatch, in the certainty that by so doing you will perform
a great service to the country, giving stability to property
and putting an end to much litigation that absorbs and ren-
ders useless great productive forces, and at the same time,
putting the Government in the position of being able to un-
dertake a methodical and reasonable plan of colonization,
terminating in this manner the unfortunate regime in which
we live to-day with enormous extensions of unproductive
territory, unproductive because it is unknown to whom it be-
longs, or because its possession is disputed by opposing in-
terests.

Grovemment and po^vrers of* Cong^ress

Our Political Constitution, venerable for its antiquity
and for the great services that it has given in the past and
still gives to the country, urgently requires a revision of a
general nature which, without altering essentially the sys •

10 INAUGURAL ADDRESS

tem it has created, shall adapt it to the requirements of to-
day.

At the time of its promulgation and for many years after,
a limited number of persons, animated by a common spirit,
administered at their will the Government of the Republic,
with complete freedom from all popular intervention and
from that irresistible force which impels and gives vigour
to modern democracies, and which is called imhlic opinion.
These small groups of citizens directed and carried out the
politics of the coutry, and dominated without counterpoise
in Congress and Government. Under such circunstance it
was not possible for confilicts to arise between the public
authorities, and there was no need to fear for the security
of the State or the stability of its institutions from this cause.
But these may be produced to-day when the old political
staff, few in numbers, compact and homogeneous, has been
replaced by another much more numerous and also less dis-
ciplined, and when, in order to govern, it is necessary to
resort to combinations, not always too stable, of parties and
of groups.

To-day it may easily occur, as has already happened
more than once, that the opposing tendencies rule in the
two houses of Parliament, and that both desire to impress
their elected courses on the Goverment. It may also happen
easily, as it has done, that a President of the Republic, elec-
ted by the Republic, elected by the popular vote, with the
responsibility of carrying out a determined programme,
finds himself face to face with a House in which the ele-
ments vanquished in the conflict dominate and are hostile,
naturally, to the realization of this programme.

From such anomalous situations, however little the oppo-
sing claims may be pushed, may arise grave perils for the
public order, and even when, by discretion and patriotism,
it is possible to avoid the latter, they will always disturb the
Government, weaken its action and force it to adopt a policy
of daily and objectionable compromises.

The fundamental statute of the Republic ought to ave effi-
cient means of solving conflicts between the different powers

INAUGURAL ADDRESS 11

in the State and for facilitating the prosperous conduct of
Government. The laws should adapt themselves to the pe-
riod in which they have to be applied and to the customs of
the people whose lives they regulate and, it our constitution
in the past has not presented difficulties in this respect in
consequence of the conditions, of society and the form in
which our political activities have developed, a duty is im-
posed to-day upon our patriotism to support the necessary
reforms, acting with elevated and serene views, in order to
guarantee, above all, public order and social peace and
tranquillity.

The necessity of foreseeing and remedying the evils to
which I have referred imposes, in my opinion, the need of
depriving one of the branches of Congress, that which least
directly represents the national will, of its political powers,
leaving it as amerely revising and modifying body; assigning
to it functions which, in spite of being necesary in every well
organised country, in ours lack an adequate organization
to apply them.

It is also a matter of some urgency that the President
of the Republic, for once at least during his term of office,
should be empowered to dissolve the House of Deputies and
appeal to the sovereign popular will to resolve the ideals
and aspirations at issue in the conflict that may have arisen.

System of elections

The laws relating to the elections of the President of the
Republic also call urgently for revision. The grave defects
from which they suffer have not made themselves apparent
until of late vears, because hitherto there have been no true
presidential elections amorg us, «\rith the free and ample
exercise of the national will: but, since this factor has ente-
red and made its claim heard in the ^lections of the First
Magistrate of the Republic, the defects of the present system
have made themselves evident in their reality and naked-
ness.

It is sufficient to recall the fact that already on three
ocasions within the last twenty years they have seriously

12 INAUGURAL ADDRESS

theatened the public tmnquillity, and have, in fact, suspen-
ded the normal national life. The adoption of the direct vote
in these electiones, besides being more in contorraitj with
the democratic rule that we follow, would suffice to correct
this anomaly. The mechanism ofthe Constitution which sup-
plies the place of the President when temporarily or perma-
nently impeded in the discharge of his duties, is also very
imperfect. It permits the delivery of the exercise of supreme
power, on unforseen ocasions, tor a long period, to persons
entirely lacking the sanction of popular will. This deficiency
might be supplied by the election, at the same time as the
President, of a Vice-president.

The Tribunal for the Revision of Powers established by
he Chamber of Deputies by the law of February 8th, 1906,
and made applicable to the Chamber of Seuators by the law
of February 21, 1914, has given such excellent results, that
it would manifestly be of advantage to embody it in the Cons-
titution and to grant it power not only to revise powers but
to cover elections, examine claims and resolve cases which
may affect the elected persons or which may arise subse-
quently, in order in th's manner to restore honesty and poli-
tical morality, and guarantee absolute respect for the popu-
lar will.

I>eceiit»*alia5atioii of* Oovenxirieiit

One of the reforms most urgently called for refers to ad-
ministrative decentralization. Our fundamental Charter crea-
ted a robust and vigorous central power from which are de-
rived and from which diverge the vital forces that apply
from end to end of the Republic. It was a necessity dictated
by the needs ofthe time of its formulation. The maintenance
of public order and the embryonic development of the coun-
try in those days also demanded it; but to-day, its great
growth, the advance of all its activities, both moral and ma-
terial, make the idea of centralization absolutely impractica-
ble in the nation. As a result of the system, grave congestion
is produced in the central power and a general weakness
afjfects the interests of the country in the rest of the Repu-
blic.

INAUGURAL ADDRESS 13

It is neither possible nor fitting that the Chief of the State
should have to busy himself with the minor administrative
details of the most remote regions of the country. This has
brouglit about, as its natural consequence, the neglect and
abandonment of the gravest and most important regional
services.

I have had the opportunity of visiting the country from
one end to the other and with profound regret I have noted
that there is a lack of roads for the transportation and dis.
tribution of its wealth, that there are inadequate schools,
prisoUvS, hospitals, and public establishments for the most im-
perative and pressing local requirements. I blame nobody
for this state of things, but at the same time. I affirm it to
be a consequence of the regime of centralization in which we
live.

It is now necessary to modify or put an end to this situa-
tion which is in conflict with the development and growth
of the country, and which is placing obstacles in the way of
that progress which is the dearest wish of every Chilian.

The hour has arrived to contemplate with seriousness
and boldness the political and administrative decentraliza-
cion of the country. Give autonomy to the provinces, give
them their own personalities, in order that they may have
direct interest in the election of their authorities; in the
spending of the revenues that are allotted to them, to attend
to thei own local public services. Let us reserve the action
of the central power for matters of general interest, for affairs
that touch the well-being and progress of the country as a
whole, and let us deliver the administration and the mana-
gement of local and regional affairs to the province as an
organism having its own life. Let us remove the congestion
of the central power in this way by the removal of innume-
rable minor affairs that drain it of its energies which are so
necessary for affairs of general interest; and, creating the
personality of the province, habituating it to the care and
management of its own affairs, let us invigorate the great,
ness of the country as a whole, basing it upon the greatness
and prosperity of the provinces and departments that com-
pose it.

14 INAUGURAL ADDRESS

Sepai*ation of" the CliTirch and State

Many other Constitutional details call for reform. It will
be sufficient to cite. Article 4 (formerly 5), and others which
bear relation to it, with the object of insuring the free exer-
cise of religious faiths and of realizing, with due respect to
all religious beliefs^ the separation of Church and State and
the secularization of all the institutions.

The State is the representative of all and owes confidence
to all. For this reason it must respect the conscience of all
on the base of tolerance for all creeds and religious groups,
in order that freedom of thought may be sincere, complete
and effective for all its citizens. The State, Avhich is the re-
presentative of the Community cannot and should not, within
a full criterion of toleration, protest or shelter one religion
rather than another; on the other hand it should encourage
respect for the human conscience whatever may be its ma-
nifestations, at the same time insuring that religious beliefs.
of whatever kind, do not iuterfere with or disturb in any
way the acts of national life. We must s > manage that the
political parties direct their efforts towards the social neces-
sities of the moment for the individual conscience.

Proposed cliang^es in tlie Constitvitioii.

There should also be reformed Clause N." 3 of Article 5
and Article 6. to surround with greater guarantees the con-
cession of certificates of naturalisation; N." 2 of Article 8 to
supress the unjust and antidemocratic suspension of citizen-
ship for domestic servants; N.** 3 of Article 10 to dissipate
the scruples which prevent some spirits from accepting the
establishment, now very necessary, of progressive taxation;
Article 21 to supersede the prohibition of the personnel of
public education jrom undertaking parliamentary functions
and to permit of these functions being remunerated; N.° 1 ,
2 an 3 of Art. 18 to make the law periodic that authorise3
the collection of taxes and the Budget law as one single law,
and that the Congress may not increase the expenses arran-
ged for by the Government or alter those authorised by spe-

INAUGURAL ADDRESS 15

cial laws; Article 45, to fix a lower quorum for the sitting of
the housjes of Parliament and for the ransaction of business,
but not for deliberation. I think also that it would be as well
to do do away with the Conservative Commission and the
Council of State in order to simplify our political procedure,
transferring their prowers to other public corporations.

As soon as the urgent tasks of the hour permit, I hope
to have the honour of submitting to the deliberation of Con-
gress a reform of the Constitution on the bases that I have
outlined above, in order to adapt our fundamental Charter
to the needs of our political evolution and the historic mo-
ments through which we are passing-
There are other reforms relating to our political procedure
for which I ask the patriotic cooperation of the representa-
tives of the people; of the parties and of public opinion in
general.

The event of 1891, supplementing the deficiency and in-
terpreting the dispositions of our fundamental Charter, es-
tablished the Parliamentary system as a fact. I do not wish
to destroy that Avhich deeds have estabished, but conside-
rations of the highest national interest induce me to insist
on soliciting the civic co-operation of all in insuring that the
parliamentary system Avorks within its proper orbit and
does not degenerate into a disturbing element in the go-
vernment of llie country.

It is the proper function of a parliament to dictate laws
and put them in action; there is evident convenience in the
fact that the laws should be as little as possible regulative
in character; that they should limit themselves to the enun-
ciation of general and fundamental principles, which would
facilitate their discussion and give them the necessary elas-
ticity in their application, to the infinitely nnmerous modes
and circumstances presented by the highly complex social
phenomena of modern life.

Fiscalization should limit itself to the demand that the
Executive Power should maintafn itself within the orbit of
its Constitutional and legal attributes, and that it should
always exercise its powers with due prudence and discre-

16 INAUGURAL ADDRESS

tion, and always for the good and the progress of the Repu-
blic.

It is, however, essential to prevent, at all costs, the in •
terference of Parliament within the strictly governmental
sphere of action. The invasion of the poAvers of the Execu-
tive by Congress brings with it disturbances of every kind,
weakens llie organization of the Republic, tends towards
anarchy, and is the principal source of disorder openly pro-
tested against by public opinion throughout the contry.

Let us seek the order and progress of the nation in the
harmonious working of the powers of the State, each one
within the radius of its attributions, of prudent concord and
harmony. The dictatorship of the Executive is to be con-
demned under all forms, but the irresponsible and collec-
live dictatorship of Parliament it equally to be condemned.

Let us adopt the patriotic resolution to render it impossi-
ble to fctU into either of these extremes, and by so doing we
shall have served properly the highest and most sacred inte-
rests of the Replic.

This invasion of Congress of the territory properly be-
longing to the Executive has continually produced ministe-
rial instability, a very great evil Avhich, if there is not energy
sufficient to condemn it, tliere should at least be energy
enough to impede it. I appeal to the patriotic sentiments of
the members of Congress asking ihm on lliis solemn occasion*
before the country, to cooperate with me in the Avork of true
national ledemplion, Avhicli is, to give stability to our Cabi-
nets, sacrificing to this elevated ideal of good Governmment,
passions, interests and even legitimate ambitions.

Those Avho have at any time formed part of a government
knoA\ that public business, by reason of its complexity, re-
quires time for its study, capacity to master it and charac-
ter to carry it out. Ministerial instability brings about, as its
natural and logical consequence lack of knoAvledge Avithin
the Government, of national problems, ignorance of its ne-
cessities, and absolute lack of directive force to impel affairs
upon theirjproper course, and to take the indispensable re-
solutions that affect the life of the a country. If the collective

INAUGURAL ADDKESS 17

effort of will on the part of men and parties does not suffice
to satisfy this demand of public opinion, it Avil be necessary
to reform our Fundamentnal Charter, rendering the holding
of the post of Minister of State incompatible with that of any
legislative function, in such manner that parliament mem-
bers ^^hen elected Ministers lose their investiture and have to
stand for a fresh election: or, otherwise by substituting par-
liamentary rule for representative or presidential, so that in
the formation of Cabinets only the administrative efficiency
of the Ministers Avill be regarded, no other considerations,
parliamentary or political, being taken into account.

Parliamentary discipline is also essential, as Avell as that
of the parties; for without it parliamentary rule, which im-
plies a great advance in the government of peoples, far from
being a fount of progress and prosperity, degenerates into an
element of anarchy, disorder and unrest. The inflexible re-
solution to put the public interests before all has more effect
on the habits and customs of the people than the laws them-
selves. It is needful thatAve forget our dissensions and remem-
ber that we must be only the chief servants of the national
interest.

As parliamentarians and members of the Government we
have on our shoulders the responsibility of such great inte-
rests, having to govern and to direct the rest, and it is in-
compatible Avith this that Ave should lack the necessary force
of character to govern ourselves in our passions and inte-
rests, for assuredly, Avhoever lacks the energy to govern
himself ought to renounce the right of governing others.

It is absolutely necessary, also, to give our parliament a
truly democratic character Avhich shall, once for all, obtain
the definite reform of our parliamentary procedure, establis-
hing the closure of debate by simple majority, because the
spectacle that Ave often Avitness of seeing projects of such im-
portance as to affect the public Avelfare obstructed by the Avill
and effort of some single member.

Les us resolutely mould our customs to these ideals, let
us carry out the reforms here suggested and Ave shall have

18 INAUGUKAL ADDRESS

obtained for the country the greatest of benefits and earned
the gratitude of our fellowcitizens.

Geological changes show themselves at the surface of the
earth in strata superimposed like the pages of a gigantic book,
and one can trace them in the transformations effected by
the slow and patient processes of evolution. la the same
manner the transformations and cataclysms which have been
suffered by humanity, calling themselves «The French Ro-
volution>, cThe Destruction of the Roman Hlmpire*, or <The
Reformation », or the like transcendental events, represent a
profound change in the bases of human society. Each one of
these periods or steps through which humanity has passed
on its irresistible path towards progress, is marked by a
complete alternation in the material order of things or in the
moral and intellectual. Each shock brings up a renewal of
ideals, of propositions, of aspirations, Avhich ever go accom-
panied by an improvement and an advance towards the grea*
ter well-being of the whole community.

* ' The Oi'jg^aiiization of* Labour ' '

The great Var which has just finished, and of which we
were interested spectators, has occasioned the rise of a new
humanity, redeemed by sorrow, now that its consequences
have reached to the confines of the universe, and together
with reforms of every kind there has awakened a sentiment
of concord and harmony among men.

The Treaty of Verssailles, of the year 1919, which esta-
blished the League of Nations to which we also belong, has
created, in part 13, section, 1.* new law, which it has desig-
nated «The Organization of Labour*. By this means it is de-
signed to make the protection and organization of Labour
one of the fundamental bases upon which to build the inter-
nal and external peace of nations. The Treaty looks upon it
as being necessary to suppress the injustices, the hardness
and privations existing between men, to secure peace and
order by the equilibrium of all laws and duties on the basis
of justice and social solidarity.

INAUGURAL ADDRESS '19

The Treaty of Versailles, in the chapter referring to this
matter, part XIII, Section I «Organization of Labour* reads
as follows.

It is held that the Society of Nations has for its object to
establish universal peace, and that this peace can rest on no
other basis than that of social justice.

It is held that conditions of Labour exist which imply for
a great number of persons injustice, misery and privations
that tend to engender discontent to the extent that peace is
put in peril together with universal harmony, audit hold also
that it is necessary to ameliorate these conditions; for exam-
ple, with regard to liours of labour, a maximum day's
and Aveek's work fixing, the conditions of contract for manual
labour, the fight againsi «slacking» the guaranteeing of a
wage sufficient to insure decent conditions of life, protection
of workmen against general or occupational sickness, acci-
dents, etc., the protection of children, yonng people and avo-
men, old age and sickness pensions; defence of workmen's
interests when employed abroad, the recognition of the prin-
ciple of association, the organization of technical and profes-
sional education and other like measures.

It is further held that the failure to adopt a human regu-
lation of Labour on the pari of any nation whatsoever, is an
obstacle to the efforts of the other nations desirous of ame-
liorating the lot of the Avorking people in their OAvn coun-
tries.

Moved by these considerations and by sentiments of jus-
tice and iium».nity, as Avell as by the desire of insuring las-
ting peace throughout the world, the Contracting Parties
agreed to found a Permanent Organization charged Avith the
task of Avorking for the realization of the programme outlined
in the preamble Avhich I have just read to you.

The same Treaty that establishes this organization in a
permanent form, makes it consist: I, of a general conference
of representatives of the League of Nations, and 2, of an In-
ternational Office controlled by a directing Council.

20 INAUGURAL ADDRESS

These organizations form an integral part of the League
of Nations, to which Ave also are joined by Treaty, and in ful-
filUraent of which Ave took part in the Labour Conference ce-
lebrated in NcAv York in October, 1919. We ought to have
attended that held in Genoa in October, 1920, and Ave shall
be present at the one to be held during the present year in
Geneva, in accordance Avith our international obligation, and
take our share in the humanitarian evolution Avhich the civi-
lized peoples of to-day are endeavouring to further.

In accordance Avith these principles of social justice, the
Government has been occupied Avith several projects and
their presentation to Congress for the expression of its opi-
nion, relating le the reform of the laAv of Workmen's Accidents
the Eight-Hour Day, the regulation of the Avork of Avomen
and Children, the improvement of Avorking conditions Avith
respect to Health and Safety, the creation of au Office and
Inspection Department for Labour, Avhich shall establish the
regulations affecting dismissal. Workmen's Insurance and
common laAv in the region of the north.

This Avork, presented in sections, has finally been conso-
lidated and amplified, adapting it to the necessities of our
national life, in a project of a Labour LaAv Code, Avhich. I
have brought forAvard for your consideration and study, and
the prompt despatch of AAhich I ask of you as an expression
of your approval of the social solidarity that is to-day de-
manded by humanity as a Avhole, and which Avill establish
peace and order among us on the foundations of justice and
righi.

Code to reg^ixlate lalioiav contracts

The Code Avich I have brought forAvard for vour conside-
ration legislates on labour contracts, Avhich have not as yet
received due attention fiom our existing laAvs, and expresses
all the rules necessary to guarantee the terras of contracts in
Avhich a free man lends to another his energy and skill. Spe-
cial rules are included to cover individual and collective
contracts, declaring Avith due precision the reciprocal rights
and duties of the contracting parties. Special attention is gi-

INAUGURAL ADDRESS ^\

ven to the luring of workmen, establishing specific rules to
prevent the frequent abuse occasioned by their being taken
from their homes under a promise of work and wages which
have no foundation in fact and which occasions cruelties and
disturbances of all kinds.

Rules are also laid down determining the form in which
wages are to be paid, a minimum wage being laid dow, to-
gether with the conditions under which it is determined, in
order that there maj' no longer be among our workers those
who lack the indispensable means of attending to their per-
sonal necessities and those of their families.

The law, representing the State, should protect the lives
of the citizens and provide the means necessary to insure
that none lack the elementary resources for their subsistence
and that of their offspring.

There is insured, alao, to the worker, a moderate and re-
gular participation in the profits, in order to create mutual
interest between capital and labour, and to establish, on the
basis of reciprocal profit, definite harmony between capita-
lists and workers, as the immovable foundation of the great-
ness and economic prosperity of the country.

Regulations are established for the limiting of the hours
of Avork, to protect women and chidren, to impose a weekly
rest, to adopt all the measures of hygiene and security for
the workman; the right of association is recognised, such as
aim at the physical, moral, intellectual and cultural impro-
vement of the worker: the right to strike is recognised whilst
at the same lime clauses of an energetic and serious cha-
racter are included, having for their object the protection and
right to work of those who do not desire to participate in
strike movements.

Legislation is proposed dealing with workmen's dwellings
in the Nitrate regions, mining, agricultural and urban cen-
tres. Duo compensation is indicated for accidents on the
basis of professional risk, tribunals of conciliation and ar-
bitration are created to further the harmonious settlement of
the difficulties that unfortunately arise between capital and
labour, in order to prevent, as far as possible, the strikes

22 INAUGURAL ADDRESS

lliat SO profoundly damage national production, with grave
detriment to the general interests of the country, and espe-
cially to the working classes themselves.

Workmen's Insurance and Inspection
of* Latooni'

Workmen's Insurance is also organised on a scientific
and efficient form, to help the -worker iu case of sickness,
accident, old age or unemployment.

Finally, the legistation proposed creates the Inspection
of Labour in a Avay in which it can attend efficiently to all
the situations, legal questions, etc, arising out of the Code
referred to, which also contains clauses designed to protect
private employees a clase of persons for Avhom, as soon as
possible. I propose to bring under the shelter of the com-
munity and the law to which they have right.

As Avill have been gathered from the brief account which
you have heard from me, the Labour Code foUoAvs the ten-
dencies of civilized humanity. In it is sought a definite so-
lution of the existing differences between capital and labour,
as the necessary means of increasing the production of the
contry in all forms and manifestations of its economic acti-
vities.

The Government trusts that, being yourselves convinced
of the justice of such legislation, you Avill lend it your pa-
triotic and distinguished aid in cementing social peace and
order on the base of the equilibrium of reciprocal rights and
duties.

The present Government, as I have said, and once more
repeat, is ready to listen to all petitions affecting justice
and social improvement, but at the same time it will be in-
flexible in demanding and imposing the maintenance of pu-
blic order and respect for all the fundamental rights upon
Avhich depend interests that are guaranteed by our laws.

The Government accepts evolution, it Avill protect and aid
every idea representing improvement, phy sical, intellec-
tual or moral, of Avhat ever king that means the greater
well-being of the people, but it rejects and restrains every

INAUGURAL ADDRESS S3

act ten ding to dfst urbance, violence and disorder, or which
attacks any form of right.

This administration bases itself on the concord, harmony
and mutual assistence of every social element, to find, in the
co-operation of all, the precise and necessary resultthe Avel-
fare of the community; for this reason it condemns with energy
the misguided preachers of hate, the sowers of mistrust, who
poison the relations of those en high position with those be-
low and vine versa. No attention should be given to any ideas
tending to separate men from eaclother Avhen a Government
exists which has the inflexible resolution tp dispense equal
justice; to give to each that which is his due, and to apply
equal laws to every inhabitant of the Republic for the very
reason that he is one.

Let us undertake together. Government, legislators, citi-
zens, rich and poor, the work of social redemption, of soli-
darity and of harmony, proceeding with elevation of spirit; let
us promote together the happiness of the Republic. So shall
we obtain tranquility and well-being for all within the sphere
of their respective activities. These ideas, which I have sus-
tained and served throughut my whole life, are the same
which, I upheld when I came forward to ask the votes of my
fellow citizens; they are those which I have maintained bo-
fote the country, and they are those which I am under obli-
gation to carry out. In this same place, in the solemn act of
the Convention of April 25th. 1920, in presenting my pro-
grame. I finished by saving:

I wish to be a menace for reactionary spirits, for those
who resist just and necessary reforms; they are the propa-
gandists of disturbance and discontent,

I wish to be a threat for those who strive against the prin-
ciples of justice and right,— a threat against those who re-
main blind, deaf and dumb in face of the evolution of the
moment; who do not understand the needs of to-day for insu-
ring the greatness of the country; for those who do not know
how to love it and to make sacrifices to serve it.

I shall be, finally, a threat for all Avho do not trully unders-
tand what is meant by love of country, and who, instead of

24 tNAtlGURAL ADDREi3S

preaching solutions of harmony and peace, provoke divisions
and sow hatreds, forgetting' that hatred is sterile and that
love alone is productive the living seed of the prosperity of
peoples and the greatness of nations.

3I!iiiist]:*ies of Agrioulture and Lal>oixi*

A necessary adjunct of this Avork of social justice and so-
lidarity is the prompt despatch of the law creating the Mi"
nislry of Agriculture and the Ministry of Labour and Social
Prevision Avhich, already approved by the House of Deputies,
awaits the legislative approval of the Honourable Senate.

Notwithstanding the painful situation of the National Fi-
nances, I make bold to ask for the immediate despatch of
these two reforms since at the present moment they are ab-
solutely indispensable.

The creation of these organizations under these circums-
tances embodies ideas of public benefit, since they are con-
cerned with essentially productive work which it is desira-
ble, at all costs, to intensify and increase. This object will be
attained by creating a superior service especially destined
to protect, shelter and defend agriculture, which is passing
through a critical period. '1 he national production also re-
quires for its intensification an efficient organization to deal
Avith the wage earners and their defence as an economic
factor, and which will tend to prevent the great disturbances
ocasioned in the industrial Avorld by frequent and disastrous
conflicts between capital and labour.

A.iiti-a-lcoliolic legislation.

There will shortly be presented for your consideration a
project to combat alcoholism which also effectively touches
the defence of our race, as an economic and social factor.

The national vine cultivation represents a source of great
riches. It has been built up under the protection of law and
of public opinion.

Its destruction at the present moment, would mean the
aggravation of the economic crisis that is afflicting us, and
would reduce to poverty a considerable number of our

INAUGURAL ADDRESS ^

fellow-citizens Avho live by it. It is the duty of the public
authorities to solve this grave problem, one of the most im-
portant that engages their attention, on the basis of a pru-
dent harmony betAveen the interests of the industry and the
unavoidable necessity of saving the race from the gravest
of perils, the worst of evils that brings in its train every kind
of morbid physical and moral consequences.

To this end, seeking of an equation of harmony that will
satisfy the interests to be conciliated, ihe project. I have
mentioned is directed, and it will shortly be broughi before
you for your study and deliberation. In it are included clau-
ses which tend to provide suitable physical recreations and
all kinds of sports to wich the Government will lend its spe-
cial favour and attention with a vicAv to combatting alcoho-
lism and invigorating the race.

The General Directory of Health and its subordinate offi-
cers exercise their functions in an efficacious manner, rigo-
rously applyng the Sanitary Code in energetic defence of
the lives of our felloAv-citizens.

This set of regulations has obtained the good results ex-
pected of it, in spite of the fact that its services are still in a
rudimentary state, and that it lacks resources for proper
application. I shall have the honour to present during the
legislative period now beginning certain projects of a sani-
tary character destined to supply these deficiencies.

Sanitai'y Mleasures

Due to the energetic and constant action displayed by the
General Board of Health it has been possible to extirpate,
almost entirely, among other epidemics, typhus fever, which
has caused such ravages among us. With equal energy the
epidemic of smallpox that has broken out again Avithin the
territory of the Republic is being attacked, ad lymph, sera
and other products to impede the spread of different disea-
ses, are being elaborated. I have the intention of contracting
a bacteriologist equipped Avith the latest knoAvledge in the
scientific developments of the study, since it is the plain duty

26 INAUGURAL ADDRESS

of the Government to defend with resolution the lives of the
population.

The sanitary condition of the country is satisfactory. The
sanitary stations of Arica and Valparaiso have worked with
succes, preventing the introduction into this country of in-
fectious complaints from abroad. Our representatives took
honourable place in the Sixth Sanitary Congress of the Ame-
lican Republics, held in the city of Montevideo in Decem-
ber last.

The Government will continue to give every attention to
all the services which deal with the health and hygienic state
of the public, and will continue with every kind of adminis-
trative measures that may be necessary, to combat the so-
cial evils that weaken, undermine and destroy the race, di-
rectly affecting future generations, which should be born
strong and vigorous; for upon them depends the future great-
ness and prosperity of the Republic.

The Government proposes to study thoroughly a project
of reform in our charitable legislation, on the scientific basis
of the Public Aid Department, since it is a function and duty
of the State to attend to the sick and disabled as a measure
ot social defence, and to pay to the community the tribute
of aid and assistance which all owe to those who fall in the
battle of life when fighting for the common wellfare.

The reorganization of these services on this basis, with
technical officers adequately equipped for their mission is
indispensable, and it is necessary also to procure, by some
means, the funds required by this important branch of admi-
nistration.

Projects of hygiene

The paving of the Capital, in order to improve its higienic
conditions is being actively pushed forward, and projects
are in hand to deal with the outlying quarters of the city.
Obligatory drainage service is being installed in different
zones, to terminate once for all with the aceg'm'a* (open drains)
which are centres of infection. It is also intended to extend
this benefit to other towns throughout the country that are in
need of it. The Government intends also to obtain and per

JNAUGliRAL ADDRESS 27

feet the services of domestic water supply to all the towns
of the Republic that lack this essential element of life and
health. There have already been put in oration the three
new services of Illapel, Molina and Bulnes, and the work
continues in Arica. Pisagua, Coquimbo, Serena, San Felipe,
Los Andes, Rancagua, Curic6, Concepci6n, Coronel and
Puerto Montt.

I recommend to you especially two projects of this nature
which are awaiting your considerrttion, and which refer to
the paving of all towns Avith a population higher than 10,000
inhabitants.

Post Offices and Telegraphs have continued their work in
due order, though it is to be regretted that these services
liave not been given all the amplitude and development re-
quired, owing to the rigorous rule of economy imposed upon
all branches of the Administration by the precarious state
of the public Finances.

The Office of Statistics has opened a section relating to
National agriculture, that has produced, and still produces,
satisfactory results. During the last three years it has been
able to inform the Government Avith precision and punctua-
lity regard ding the area sow n and the more important agri-
cultural products, the prospects of the crop the amount of
the harvests and the excess probably available for exporta-
tion, with an exactitude that has exceeded the most san-
guine expectations at the time when this department was
created. This office lends great assistance to the solution of
the important problem of subsistence, in harmony with in-
ternational commerce.

The census of the population of the Republic, carried out
on the 15th of December last, left the painful impression of
an insufficient increase in our population, which has only
reached 502,803 over the previous census, representing an
annual increase of 1.18X- This circumstance throws into
high relief the necessity of defending the hygienic conditions
of our centres of population to cope with the alarming infant

28 INAUGURAL ADDRESS

mortality and the high proportion of adult mortality as a
consequence of the abandonment in which the sanitary ser-
vices have been left

Corps of* Cai'abineei's

During the past year the Corps of Carabineers has rea-
ched the highest development of its services. By law 3739
of February 25th of the present year, an increase of 1,014
men with their officers has been made, thanks to which new
squadrons have been organised in Coquimbo, Valparaiso,
Santiago, Rancagua, Talca, Concepcion and Valdivia, whilst
the ranks have been reinforced in the Nitrate districts, the
Coal mining regions and in Punta Arenas, a t the same time
a new organization has been given generally to the body,
dividing it into four regiments assigning one to each zone
of the country.

With very good results the body has attended to police
duties throughout the whole of the railway system and has
replaced the police in different rural centres.

In spite of the increase indicated above, the Corps of Ca-
rabineers has not been able to attend to all the petitions re-
ceived from different parts of the country almost daily, and
it will be desirable, as soon aa posible, to complete the orga-
nization of the Corps by formng new squadrons in the pro-
vinces of Tacna, Atacama, Curic6, Linares, Maule and Bio-
Bio, so that each province may have a unit of Carabineers
which will insure tranquillity in the rural districts and in
the smaller centres of population.

I maintain today in all its parts this conception which
harmonizes with the profoundest conviction of ray soul, and
you may understand from this how intense is my interest
and how firm is my resolution to consecrate to this public
service all the zeanecessary to insure that the law may in-
deed produce all the great benefits which the country has
to expect from it.

With equal interest, with equal devotion, I shall occupy
myself during my term of office to the advancement of se-

INAUGURAL ADDRESS 29

condary and higher education to the fullest extent permitted
by the resources of the State.

The greatness and prosperity of a country is essentially
based on the dilTusion of education which, as a moral force,
converts itself into an irresistible spiritual power which de-
termines its progress in every field of effort and activity.

The edvication of -woman

The determined efforts of my Government in favour of
education in general will decidedly tend to advance that of
women, Avhich is destined to constitute a powerful factor of
the moral, intellectual and physical culture of the people.
The education of Avoman is imperatively demanded by the
present requirements of human society. To educate the wo-
man, the mother of the future, is to insure the instruction of
generations to come.

I am glad to express satisfaction with the manner in which
the personnel of the Liceos for Girls have served the nume-
rous pupils who have received their teaching.

I am determined also, by all the means in my power to
insure that our University represents the elevated ideals
which it is called upon to fulfill within the functions of the
State. It is to be desired that our University, endowed w'th
self-governing powers and its own staff, withdrawing itself
somewhat from its present work of preparing professional
men, should convert itself into a true laboratory of scientific
experiment in every branch of human knowledge, in order
that, as in other countries, the day may come in which it
will be the fruitful source of light and intellectual life
whence radiate the definite cultural impulses of a true and
solid national progress.

It is also my desire to encourage the formation of regional
Universities which, like that of Concepci6n, will spread
science and teaching throughout the whole country, facili-
tating in this manner the education of many students who
lack means to settle in the Capital.

30 INAUGURAL ADDRESS

Arnxedl foi'ces

The armed forces of the Nation have continued their ti-
mehonoured tradition of discipline, of study, and efficient
work, and they are the object of decided interest on the part
of my Government, not only as the guarantee of internal
and external peace, but as instttutions of a highly educative
character.

Their material progress has been attended to by the ac-
quisition of necessary elements which had become indispen-
sable, and to their physical and moral advancement by the
organization of services of hygiene, of prophylaxis, and civic
education, that avIU uphold in our soldiers the ideal of a
healthy mind in a healthy body

Social Hygiene

I have had the great satisfaction of creating the Service
of Social Hygiene within the Army on strict tly scientific
bases, in conformity Avith the ideas of the most advanced
nations add giving prime importance to the element of pre-
vention— an adequate education> the formation of good
habits, obligatory prophylaxis — without prejudice to the
most complete elements of diagnosis and tieatment when
such may unfortunately be necessary. The control of this
service has been handed over to a special section of the
Sanitary Directory of the Army, beginning with the second
division, to be extended later to the rest. I am convinced
that with foresight and appreciation of its importance you
Avill give every possible aid to this measure of reform, in
order that our armed institutions may daily become better
schools of sobriety, good manners and customs among the
peodle, and efficient factors in the salvation of our race.

The courses of Scientific Gymnastic Exercises, carried
out in the Institute of Education and General Headquaters,
Avill contribute to the same end, as Avill also the primary
schools of the different Army Corps in Avhich 92X of their
6033 pupils have been taught to read and write.

INAUGURAL ADDRESS 31

By law of the Republic a definite organization has been
given to the Sanitary service of the Fleet. That of the Army
awaits the benefit of a similar organization to give stability
and stimulus to the medical staf and the resulting guarantee
that the military personnel will be adequately attended to. A
project of law with this object in view will shortly be sub-
mitted to you.

Another pressing need of the Army is the construction of
good barracks. The Nation, in requiring military service of
all its citizens, is under obligation to furnish them Avith at
least decent and hygienic accommodation. The Government,
without compromising the situation of our finances, is study-
ing a project to be submitted to you in due course.

A further project, shortly to be presented, deals with the
reform of the antiquated Military tribunals in respect to their
rules of procedure and penal laws. The subject is being stu-
died by a Commission appointed for the purpose by the Go-
vernment.

The machinery has arrived in good condition and will
shortly be erected, for the manufacture of rifles and explosi-
ves in Chile, with advantage and economy.

In furnishing our Arsenals with these expensive machi-
nes, I c6nsider that they should not be wholly devoted to
the construction and preparation of war-material, but should
be so utilised as to be of benefit to industrial development
and commerce in general.

IMilitaivy aviation

I am glad to be able to give a good account of the pro-
gress attained by military aviation and the prospects which
are opening before naval aviation, both counting on good
instructors and adequate material and, above all, on the en-
thusiasm and patriotic self devotion of our young pilots. The
victims who have fallen, to whom I render my tribute of
admiration, give a guarantee of progress, for sacrifice is
ever a fruitful seed among virile peoples.

An Artillery and Infantry School has been established, a
well justifiel aspiration of our army in its capacity scientifi-

32 INAUGURAL ADDRESS

cally and methodically. For some time past there have been
before you, awaiting consideration, a number of projects
affecting the armed forces in their ever increasing develop-
ment, I ask you to give your kind attention more particu-
larly to projects concerned with the scale of pay, to that
which regulates the retirement and pensions of the Army
and Navy, and to that which recognises and constitutes the
Chilian Red Cros; and further I would emplasisa that which
relates to the improvement of the status of subofftcials and
recognises their right to retire after 20 years service. These
devoted public servants deserve to receive the attention
that they have long claimed. The benefits of thelaw relating
to workmen's dwellings should also be made extensive to
them.

The Navy continues its traditional path of progress, and
as ever, its personnel is a shining example of discipline,
force and work. The acquisition of new elements has served
as a stimulus to those devoted servants of the Nation to con-
tinue workiug for the greatness of the country.

In response to the continual attention bestowed upon them
by the Government, the different schools on land and afloat
have continued their regular course of instruction Avith no-
table success. Congress h is recently dispatched a law pre
sented by the Excutive reorganising the Scxnitary service of
the Navy, satisfying thereby an imperative nacessity of this
department Avhich in future will be able to develop in the
manner which its importance demands.

The Government has taken decided interest in the encou-
ragement of Naval aviation, and to this end has contracted
in English instructor who will have under his charge the
preparation of the necessary personnel.

In view of the authorization given to the Executive by
law N.** 8 of September last, work on the new dock in Talca-
huano has been carried on, formerly stopped by reason of
difficulties arising out of the European war. It is satisfactory
to note that all the cementto be used in these works will be
of national manutacture, equal in quality to the best foreing
product, and at a lower price, to the great advantage of the

national industry.

INAUGURAL ADDRESS 33

There l\as been taken account of in the Budget such reso-
urces for the Navy as the condition of the Finances permits,
for the improvement in the conditions of life among the wor-
kers.

Further, as it is necessary to reform Military Law in ist
reference to the land forces, so it is also necessary to reform
our antiquated legislation in respect to the Navy, in order
to adapt it to the requirements of our day.

The Agricultural Institute at the Quinta Normal has ope-
ned its courses with 289 pupils, an indication of the interest
taken in these studies and the stimulus which is given by
tlie construction of the new edifice fitted with the most mo-
dern and complete installation, implies for the students.

The services of instruction and encouragement of Agri-
culture have visibly improved. A Publicity and Propaganda
section has recently been added in order that information
on the latest advances and improvements may be distribu-
ted among Agriculturalists.

Expoi't of" fruit

The first experiment made in the exportation of fruit to
the United States of North America is a clear proof of the
importance of this branch of commerce, which is destined'
to have very great effect in the extension and improvement
of fruit culture, for which the central region of the country
is exceptionally well adapted. Every effort will be made to
follow up this experiment wihth others in order that this
commercial current may be definitely set flowing.

National industries, which attained a notable state of de-
velopment during the war, have been affected by the gene-
ral crisis and by the necessity of meeting foreign competi-
tion which has risen again with the renewal of world comer-
ce, and has renewed the markets that it held before the
war.

The recent law placing the ad valoreia tax of 50X on im-
ported articles has come to protect our industries at a diffi-
cult moment. It is unfortunate that the urgency of the need
to find greater resources for the Revenue has prevented hi-

8

34 INAUGURAL ADDRESS

therto the study of a complete reform ol the Customs House
regulations, as proposed by the Government to satisfy the
wishes of industrials.

The Government has recently taken various measures
with the object of giving preference, in purchases by the
State for public works, to machinery, products and articles
of national manufacture.

I attribute the highest importance to the development of
industrial education and the protection of our industries.
I have complete faith in the industrial future of the country
and that to this factor is linked the improvement of econo-
mic and social condition of our fellow citizens.

To further this object I shall give preferential attention
to the assistance of the School of Arts and Crafts, to the
creation of new Technical schools and to the task of plac-
ing the professional staff on the same advantageous footing
as that of the secondary and higher institutions.

I hope that during the present year it will be pos'^ible to
begin work on a proper building for the Industrial School of
Chilian with workshops and adequate installations, and that
shortly also the same will be done in Terauco. The Govern-
. ment also contemplates the 3reation of new technical schools
in Valparaiso, Concepcion and Valdivia.

Mining education and the professional training of women
will also receive from my Government efficient support.

It is unfortunate that adequate reasons prevent us from
conceding funds that have been asked for the creation of a
normal course to train professors for the professional schools.
I shall ask your assistance for this next year. Without com-
petent masters and until the condition of the staff is impro-
ved it will be impossible to make effective progress in this
branch of teaching.

The Iron Industry

The result of the first trial with the Iron Furnaces of Co-
rral has been satisfactory, and I hope that, as soon as the
situation becomes normal, it will enter on regular work.

INAUGURAL ADDRESS 35

The Government will give to this company and to others
interested in the development of the Iron Industry in Chile,
every facility and privilege. In this way, I have conceded
to Messrs. Otto Lenz and Paul Guerich the use of a conside-
rable extension of woodland and water rights representing
over 400 cubic metres per second, for the establishment of
the iron industry in the province of Llanquihue.

The TJnemployecl

In spite of the efforts made and the money expended, the
problem of the men left unemployed by the crisis in the Ni-
trate industry still awaits solution. This problem, arising
out of the suspension of work in the Nitrate Oficinas, has
been the object of my special attention.

The Labour office, since January of the present year, has
placed in different works or industries 30,444 workmen.
There are in Santiago, also 9 shelters with some 10,127
people in them. It has been necessary to put up another
shelter in Limache, for fifteen hundred people whose arrival
from the north is expected. In the towns of TarapacA and
Antofagasta and in other parts of the Republic there still re-
main a considerable number of operatives without work.

I have personally attended to the conditions under which
the people are housed in these shelters, with the endeavour
to ameliorate, in the best form possible, the painful situation
to which they have been reduced by the Nitrate crisis. The
Prefecture of Police of Santiago and its staff have coopera-
ted with praiseworthy self-denial in this work of humanity
and justice.

I fulfil a pleasant duty in bearing witness to the efforts of
the Red Cross which its distinguished personnel, made up of
ladies of our society, has lent and continues to lend, gene-
rous help in the shelters.

Many of these unemployed have been occupied in public
emergency works, attended to by funds voted for the pur-
pose by Congres in Ferbruary last. A project for the making
and repairing of roads, when the studies upon it are com-
pleted, will be able to supply work to double or triple the

36 INAUGURAL ADDKEBS

number of men. From these funds have been renewed the
work on the School of Engineering' and Architecture, the
National Library, the Historical Mu«eum, the School of Me-
dicine and Maternity of the San Vicente Hospital ^vhilst suras
have been set aside for the provision of potable water,
school buildings and payments for Railway contract work.
The Government has expended great effort on the Law
relating to Roads of March 5lh, 1920. Shortly, a lengthy set
of regulations Avill be enforced dealing with all the roads in
the country and steps will be taken to constitute the local
Juntas Departmental and Communal Juntas and for the con-
venient collection of taxes. This laAv, hoAvever, Avill only be-
gin to sliOAv its full effects in 1922, in the present year only
a part corresponding to four per mil of the teriitorial tax
and four per mil of the additional tax being received in the
second six months of 1920. Through the difficulties in collec-
ting the tax during the first year, it will not yield more than
1 .000,000 pesos. On the basis of the taxes already received
the special budget for roads for the present year has been
approved.

The public works in progress continue, subject to the na-
tural disturbances occasioned by the crisis. These distur-
bances have made themselves felt in the works of the grea-
test utility, as for example, the irrigation canals. The go-
vernment, iu agreement with the canal constructors, will
dictate the measures required to permit of these works being
concluded.

The difficulties Avith the contractors having been solved,
Avork on the raihAay from Iquique to Pintados has been re-
sumed, also on the Water Supply for Iquique, the contractors
noAv having all the material, piping etc. necessary to per-
mit of these works being carried through Avithout obstacles
or delays. I am noAv occupied on the study of the port of
Iquique, which as the complement of the raihvay, is neces-
sary to supply if the full results hoped for are to be obtained.

The Directorate of Public Works still lacks the laAv fixing
the status and salary of its staff. This situation ought not to
continue, treating as it does with a staff called upon to deal

INAUGURAL ADDRESS ^i

with important State interests. 1 ask you for the prompt des-
p.itch of the law, together Avith that relating to pensions and
rt!tirement><.

Reforms iii State Rail>vays

The normal course of the State Railways has been serio-
usly disturbed otlate by causes common to the whole worid,
especially the high price of fuel, material and labour. The
result of its working, from the financial standpoint, which
and been satistactory since the Law ol reorganization of
J 917, has become steadily worse, occasioning of late years,
constantly increasing losses, which it is essential to stop.

The Government is of opinion that the moment has arri-
ved in which to seek in an energetic niinner some solution
of the railway problem, which disturbs the general eco-
nomy of the country, under conditions aimed at by the law
of 1894, in which the Raiway stood on its own footing and
at the same time constituted an efficient factor of progres
in the economic development of the nation.

The Government considers it necessary fo reform the law
of 1914 and to adopt the following measures: —

1. Give full autonomy to the Railway to administer its
affairs with liberty and independence, similar to a private
company;

2. Reform the law in the sense tint the Council be com-
posed of salaried officials;

3. Give the Railway all the rolling stock and equpiment
necessary for it to attend properly to the needs of the ser-
vice;

4. As soon as possible, electrify the first section, and all
those which have the necessary motive power;

5. Contract specialists for some branches of the adminis-
tration and especially for the book-ke3ping and transport
departments;

6. Adopt the system of sliding tariffs and nominate a spe-
cial commission to settle this point scientifically and practi-
cally;

7. Finally, establish a plan of transport, obtain the inte-
rest of the employees by giving them participation in th^

38 INAUGURAL ADDRESS

profits of the business, give also the right lo obtain coal mi-
nes and wood for sleepers in order that these articles may
be obtained at the lowest possible price.

These and similar measures are absolutely necessary to
save our railways from a very difficult situation. It is neces-
sary that our agriculturalists, industrials and people in ge-
neral should resign themselves to higher rates since howe
ver painful this measure may be, it will be better than ha-
ving no railways at all, or to sec this important service ot
she State pass into foreign hands by lease or sale.

Tlie Police Force

It it an urgent and imperious necessity that a Directorate
General of the Police Force should be created to make all
throughout the Republic one body with its respective grades
and ranks and with definite rules governing its distribution
and promotion, in order to remove this service, which is of
so great an importance for the maintenance of order and
public security, from all influences outside of the funcions
which it is called upon to discharge.

I shall submit shortly to your consideration a project of
law relating to this matter. I impress upon you its prompt
despatch Avith all the emphasis demanded by a reform of
such vital importance, which deals with the indispensable
improvement of this service and which is designed to pre-
vent political motives influencing the police body Avhich
should ba a safeguard and shelter for every citizen, of wha-
tever party or shade of opinion.

A statute is also in active preparation which shall fix the
regulations to which the appointment and promotion of go-
vernment employees should conform, so that a staff can bo
appointed having the necessary guarantees for the future of
its members, based on their merits, efforts and the justice
of their needs.

I recommend to you, with all earnestness, the despatch of
the project concerned with the retirement and pension of pu-
blic employes, presented to the Senate by the Senator for
Valdivia, Seiior YAilez. This project, approved by the go-

INAUGURAL ADDRESS t%

vernment, in its general out line, is designed to fill a need,
to improve the condition of the employee and to relieve tiio
national treasury of the heavy obligations implied by hono-
rary pensions and administrative retirements.

TKo Mlai-riag'e Lavr

Thn law of civil marriage, which has been a vindication
of the powers of the State, met with serious obstacles to its
application during many years, to the evident prejudice of
the legal constitution of the family due to antiquated, exag-
gerated prejudices that opposed it without due reason.

Fortunately a distinguished citizen, at the same time an
honoured prolate, rules today the destinies of the Chilian
Church, with high ideals and sound patriotism which pre-
sent generations are grateful for and which will be justly
remembered in history. This illustrious ecclesiastic has ter-
minated the anomalous situation that existed, recognising
the authority of the State and putting an end to diffiiultie-5
consequent on the irregular constitution of those Chilian
homes that had been victims of the conflict.

In order to avoid future difficulties, there is evident need
to sanction by law, within the bounds of mutual courtesy
and respect, the actual situation.

I am glad also of the occasion to give my public testimony
in recognition of the fact that the present head of the Chilian
Church has been inflexible in prohibiting and condemning
the participation of ecclesiastics in the burning and agitate I
conflicts of militant politics. By so doing be has satisfied the
desire expressed in this sense by the country for long years
past, and the parties that have upheld this opinion have res-
ponded nobly and patriotically to the discreet attitude of the
Metropolitan, by abstaining fron mixing up the Church with
recent political controversies, not with standing the ardour
and energy that has characterised them.

It would be well worth the trouble, as I have already said,
to take this opportunity of delimiting the field of action, to
establish the proper relations between the temporal and spi-
ritual powers.

40 INAUGURAL ADDRESS

It would be easy to-day to find solutions of concord and
harmony, as happened in 1874 when the Law of Organiza-
tion and Attributes of the Penal Code was dictated, with the
sole aim of making impossible in this country religious dif-
ferences that embitter souls, raise the passions and produce
anarchy and disorder, leading into sterile fields the energies
of the people, who require all their forces to devote to re-
construction and to be able to face the multiple and complex
problems of modern life.

I desire to eliminate definitely all religious questions from
the political conflicts, not in any spirit of hostility towards
any creed, but rather to remove this sentiment completely
from civil and temporal discussions in order that absolute
liberty of conscience may be permitted on the basis of sin-
cere and honourable toleration. In this manner honour will
be paid to the principles and tendencies ruling among the
great majority of civilized peoples, and it Avill be impossible
for men or parties to make use of the moral power of reli-
gion for their own ambitions or personal ends. This inevita-
bly provokes the attack of opposed ideas, a definite reaction
among antagonistic parties which draw against one another
this moral power as a weapon in the fight.

Our Codes, which establish precepts of law in the civil,
coramercialj penal and mining circles, in the main reflect
the ideas and customs of a social medium different from
that of the present day, and tliey do not correspond to the
state of evolution of the moment.

A methodical, scientific and orderly revision of these laws
is called for, in order that the natural inconveniences of a
legislation that is not moulded entirely to the needs of the
new^ environment in which it operates. My Government is
studying and will continue to study these reforms with care
and patience, and will subinit them in due course for your
consideration and approbation, In the meantime. I recom-
mend to you with earnestness the prompt despatch of the
project submitted to the House of Senators by the President
of that illustrions body Don Luis Claro Solar, which aims at
improving the status of women and at correcting certain re-

m AUGURAL ADDRESS 41

gula lions relative to illegitimacy, which in our times have be-
come a flagrant injustice and an inexplicable anachronism.

The Organic Code of Tribunals also demands immediate
despatch, which, having years ago been submitted to the So-
vereign Congress, still remains without solution.

I recommend to you Avith equal enphasis the prompt des-
patch of the project reorganising the service of Common
Law^ drawn up by the commission designated for the pur-
pose by the Government and sudmitted to you on the 5th of
November last. This project touches a question of the grea-
test social interest and importance, impossible to leave to
one side any longer, since it may be said that owing to the
faulty constitution of our Common Law Courts, only a mine,
rity of citizens at present enjoy the favours of justice.

The greater proportion of the population, those who lack
means, who lack the resources necessary for the defence of
their rights, live in a disadvantageous situation which can*
not be allowed to exist any longer in a country which needs
to base its order and progress on the foundation of common
justice, that shall be impartial and within the reachof every
legitimate claimant.

The reforms in the laws affecting matrimony and civil re-
gistration, contained in the project of the Government, pen-
ding the decision of the Honourable Senate, tend to restrict
the limits of jurisdiction of the respective offices, which to-
day are hampered in legalising the marriages of persons iso-
lated in hospitals, monastic establishments, prisons etc. in
order, so far ns is possible, to give the beuefits of legitimacy
to children and to assure them the righs of life. It also aims
at amplifying the law in order to permit of marriages being
celebrated in a greater number of places, to facilitate its
celebration and also to avoid the expenses and complica-
tions affecting the re- marriage of widows.

I confide in your giving attention to this problem of great
social interest, a character which it holds in the estimation of
all who desire the legal constitution of the civil status of the
citizens.

The aplication of the dispositions of law N.° 3390 of July
i5th 1918, have brought about a notable decrease in the re-

42 mAUGURAL ADDftESS

venue derived from the appeal Oonrt, principally in the form
which makes it necessary that the Supreme Court is divi-
ded permanently into two halls.

This idea, reduced by a Senator from a more complete
project presented by Government, should be soon converted
into a laAv, to regulate the work of that high tribunal, leaving
for later on, when the resources of the State permit of it,
other measures which would imply an indispensable impro-
vement in on Tribunal of Justice, such as the reintegration
of the fifth Ministry in those Courts of Appeal made up of
one Court only, the increase in the number of the staff of the
Court of Appeal in Santiago, and the creation of various
courts of Justice.

The project presented by the Government to improve the
Corps of Gendarmes in the prisons is of great urgency, toge-
ther with that of the repair and reconstruction of the prisons
themselves. As I have stated elsewhere, in many towns of
the country these edifices are in a deplorable state, notwith
standing which, it will be necessary to wait until the finan-
cial condition of the strte improves before doing much to
solve this important problem.

State Eclixoation.

Primary instruction has developed along satisfactory li-
nes, so far as funds have been available for the purpose of
attending to it.

The Budget sets aside for this service the sum of $ 25. 1 6 1 ,18 1
of which $ 2.882,994 is to devoted normal schools.

There are 3,276 schools open, an increase of 85 over the
figure for last year. The scholars in the schools number
330,059, or 13,683 more than in 1919. The average atten
dance, 198,838, shoAvs an increase of 15,299 over the former
year.

The teaching staff of the schools numbering 7,455, includes
46^ of normalists, a figure representing an important ad-
Vance and improvement in the preparation of the professors,
since two years ago the proportion only reached 4 IX'

With regard to the school buildings, 2,177 were rented,
544 lent by private persons, and as many more by the Trea-

iNAUGUIiAL ADDRESS 4S

sury. Of the last, 19 constructed under the Education Law,
which a total capacity of 2,660 pupils, were handed over for
service in the same year, 1920. There are working, also, 15
normal schools for teachers, 6 for men and 9 for women,
with a total of 1,950 pupils, a figure 173 higher than that of
1919. The number of normalists graduated was 331. Attached
to these institutions are fifteen day schools, with 2,865 pupils
and an average attendance of 2,358.

The State, also, so far as the means at its disposal allowed,
attended to adult education, maintaining 29 night schools
for men and women, with 5,391 pupils.

Iiidixsti'ia,! Schools

Considerable activity has been manifested also in primary
instruction in connection with branches of education which
put the pupil in immediate contact with life, such as manual
crafts of different kinds, domestic economy, agriculture and
others.

In 1920 there were 796 workshops open for teaching se-
wing and 344 of other manual arts such as carpentery, box-
making, book-binding etc.; in all 241 workshops more than
in 1919. 94,180 pupils received instruction, men and women,
or, 20,431 more than in the previous year. The lace-making
shops, an art which will be of great advantage in enabling
women to gain their own living, were 59 in number, with
1,626 pupils. Sixteen new centres for teaching domestiz eco-
nomy, making the number up to 50 were also opened, 17,832
pupils profiting by the opportunity of gaining knowledge
indispensable for the Avoman in the home.

Vocational education, the new branch of primary instruc-
tion which tends to direct the boy or girl into a business or
profession in harmony with their abilities and which ena-
bles them to take care of themselves, counts on two new
schools, bringing the total up to 7, with 2,026 students, or 508
more than in 1919.

The professional teaching of the masters has also been an
object of special attention in 1920, prominence being given

44 INAUGURAL ADDRESS

to instruction in technical matters by means of a seties of
courses in manual crafts, domestic economy, agriculture,
drawing, music etc.

Oblig-atory I*i'iiiiary Edncation

Since the 27th of February of the present year the Law of
Obligatory Primary Education has come into operation: a
law which, besides increasing and equalising the opportu-
nities of all Chilians for receiving education and fitting them
to take efficient part in civic life, has completely reorgani-
sed the service of Primary Education. A great part of the
time of the Government and that of the Scholastic authori-
ties has been taken up with the task of duly appliyng the
law. It is a pleasure to say that, thanks to these efforts, it has
been possible in spite of the shortness of the time, to put into
operation some of the law, and to apply them without great
obstacles so far as means have permited. It is also satisfac-
tory as showing the goodwill of the people, to be able to state
that even before the formation of the necessary organiza-
tions to render the law operative, the nation has responded
to the propositions of the legislative and the hopes of the Go-
vernment, since 87,859 pupils more than in the same month
of 1920 having been enrolled, whilst the registers show an
increase of 54,676 in the a verge number of attendances.

Throughout the whole field covered by the attention of
Government there is probably nothing which has a greater
claim to its preference than that of facilitating the means to
make effective the Law of Obligatory Instruction. It includes
an obligation, not only for the father of a family, but also for
the State. It is in other word.s, a primary duty for us to pro-
vide the resources necessary for its carrying out. In this res-
pect, therefore it is essential to attend to school construc-
tion, a work which has already been begun with satisfactory
results. Without suitable buildings, in hygienic coniitions
and adapted to scholastic requirement, a goodly part of the
efforts of the teacher are wasted, and many new ideals which
it is desirable to carry into practice, in harmony with edu-
cational progress, are imposible to realize.

INAUGUKAL ADDRESS 45

In the samo way, it is necessary, on a much wider scale
than forioerly, to provide for the education of the adult, a
work giving inira3diate results, and which undoubtedly
tenls to the iiiiprovemsnt of our democracy.

It is desirable also that t!ie necessary attention be given
to manual and vocational education with a view to bettering
the methods of teaching, and so strengthen this bridge bet
ween the school and real life, by preparing the individual
for economic efficiency.

In discussing the Law of Compulsory Education in the
Senate, in the session of August 4th, 1919. I said:

« Primary Instruction, on these foundations, is the only force
sufficiently powerful to raise the moral level of the popula-
tion, to raise it from its moral and physical decadence; it
closes the tavern and the prison, raises and purifies, draws
our fellow-citizens out of the moral and physical slough into
which they have been thrown by ignorance,— the result of
our fault and negligence.

«In this manner we may make our country great, and for
this reason we mast give instruction to our people. Nor must
we forget that, thanks to ignorance, the child of illiteracy,
we are only half a democracy, since this plague spot in our
organism, known as electoral bribery, the sale of human
souls, carries to the highest posts in the land only those for-
tunate persons whose means permit them to attain them.

«It is impossible to he present at these human markets wi-
thout blushing. None the less, so enervating is the effect of
environment that we have reach 3d the point of living tran-
quilly with this abuse to which it appears that we are accli-
matized ,

«Nobody protests, the press is silent, no opinion is aroused,
in Parliament one hears no reproaches or desires for better
things; the evil goes on, it increases, reaches its highest point.
To end it, as it must and can be ended, it is sufficient to edu-
cate the people, and we shall become a true democracy,
self-conscious, great and prosperous.

«Let us not forget, then, that Ave are in the presence of a
law of liberty, destined to extinguish the last of slavery, the
slavery of ignoiance.

46 INAUGURAL ADDRESS

«We are in the presence of a law of public relief which will
raise our people from the unsounded depths ot moral and
physical degradation, to the elevation of a democracy cons-
cious of its aims, of the progress that is its due, so long as
the ideals that guide it are noble and generous.*

I ask my fellow- citizens to aid the Government by their
cooperation, supporting, as a matter of grave public necessi-
ty the calls made upon them by the unfortunate but inevita-
ble rise in raihvay rates.

There has been much discussion in the press and in poli-
tical circles Avith regard to the deficiencies of this service,
but in strict justice we must recognise the fact that this de-
partment has never received the resources necessary for the
great extension which it h:is reached.

Lacking the necessary equipment and taking into conside-
ration the extent of the lines, it will be impossible definitely
to solve the problem so long as there are no transverse ou-
tlets for merchandise coming from the south, for which pur-
pose it Avill be necessary to construct the ports of Valdivia,
Lebu, Puerto Saavedra and Constitucion. Without proper
equipment and ports capable of relieving the central line,
this problem, in itself difficult and complicated, cannot be
solved. Let us give to the State Railways the resources ne-
cessary for their transformation and let us replace by effec-
tive assistance the atmosphere of pessimis;n which has hi-
therto surrounded the service.

The necessity of permanently securing the traffic and ex-
ploitation of the international lines from Arica to La Paz
and the Transandine via Juncal, require me to call your at-
tention to the projects of law which, with this snd in view.
I have had the honour of submitting to you. I especially call
attention to the latter, that relating to the unification of the
latter, that relating to the unification of the Transandine
railways in the Chilian and Argentine sections. By so doing
government obligations Avill be fulfilled, personal communi-
cation between Chile and the Argentine will be facilitated,
the prohibitive tariffs ruling to-day will disappear, and the
great sacrifices made by the country to establish commer-
cial intercourse between tho two countries will be justified.

INAUGURAL ADDREtfB 4{7

It is a great desire of my Government to construct a rail-
way uniting tlie port of Antofagasta with the tOAvn of Salta in
the Argentine Republic, and if possible, Caldera with Tiuo-
gasta, and also Lonquiraay Avith Zapala, in the south, in or-
der to cheapen the cost of living in the north, open markets
for our pioducts in the south and, in a Avord, to encourage
commercial currents between the twe sides of the Andes, —
currents Avhich should exist as the logical cojisequence of the
neighbourhood, diversity of products and common interests
which unite Chile and the Argentine Republic.

Internatioiial conimcrcc

International commerce in 1920 amounted to $ 1 ,246.600,307
gold, corresponding to imports: $ 455,078 and exports:
791.521,373: figures higher by $ 55.754,739 and$474.517,3l9
than in 1919. During the first four months of the present year
the customs houses received in imports and exports the sura
of $ 43.799,007 gold. In the same period of the past year the
customs house receipts Avere $ 53.115,550 gold. The above
totals shoAv a decrease of revenue for this year amounting to
$ 9.316,543 gold as compared Avith an equal period of the
previous year.

It is to be noted that the sums received for export dues
during the first four months of the present year Avere
$ 40.112,963 gold for the same period of last year. On the
other hand, the import dues for this year reached $ 17 mi-
llions 78,754 gold as compared with $ 1 1.794,794 for the same
period of last year.

The foreign debt at December 3lst. 1920 was reduced to
tAventy-eight millions three hundred and fifty thousand seven
hundred and thirty two pounds sterling.

The internal debt Avas reduced by the same date to
$ 5,739,000 gold, and, taking into account the $ 150.000,000
of paper money in circulation, to $ 155 739,000 pesos. The
internal debt in notes corresponding to municipal bonds,
mort-gaqe loans, Treasury bonds, on December 31st. 1919,
amounted to 69.797,044 pesos, and Avas increased by the
same date of last year to 95.149,690 pesos.

48 INAUGUHAL ADDRESS

The details of this debt and the Stcite Guarantees in Gold
and in paper money Avill be found in the Report which will
be presented to Congress by the Minister of Finance.

The loan raised in the United States for 24 million dollars
was effected Avith complete success under the conditions de-
tailed in the Report corresponding. I make the sole comment
that this operation represents for us recognition of the soli-
dity of our credit and the faith inspired in foreign commer-
cial circles by the traditional exactitude Avith Avhich Ave com-
ply Avith our international obligations. We have thus created
a neAv bond of commercial interest which Avill strengthen our
cordial and fraternal relations Avith the great American na-
tion, the material and moral greatness of Avhich inspires the
respect and consideration of the Avorld.

IVitvate

The disturbance of the nitrate industry produced by the
outbreak of wiir affected the fiscal balance of 1915 Avilh the
foUoAving deficit:

1915

Deficit in gold $ 49.227,843

Deficit in paper 56.383,145

The increase in the consumption of nitrate caused by the
war greatly improved the state of affairs in the year 1916,
>vhich closed Avith a surplus, as shoAvn beloAv:

1916

Surplus in gold , $ 14.844,825

In currency 28.339,446

The exportation continued to increase during 1917 and
that flnantial year ended Avith the folloAving surplus:

1917

Surplus in gold $ 22.946,178

Surplus in currency 18.856,472

INAUGURAL ADDEESS 49":

These excellent results of the finances of 1916 and 1917
permitted, after the payment of all the ordinary expenses of
the nation, Avithout unnecessary restrictions, the deficit of
1916 to be reduced by December 31st of the letter year, to
$ 4.947,132.

The year 1918 opened with with unprecedented prosp'^cts
for the industry, the higest level of exportation ever recor-
ded in the history of the country being reached, 64 800,000
Spanish quintals, and accordingly, as may be understood,
the financial year closed Avith a large surplus, as shown be-
loAv:

1918

Surplus in currency $ 15.588,216

Surplus in gold 5.167,548

It may be asserted without fear 6f contradiction that the
three previous years were those of the greatest prosperity
ever known in this country, due entirely to the great con-
sumption of nitrate caused by the European war.

The demands fell during 1919, Avithout any precautions
having been taken during the years of abundance to lessen
the effect of the lean years to folloAv, and we again see tliis
year close Avith a deficit:

1919

Deficit in currency $ 52.790,304

Deficit in gold 25.229,770

Discounting this deficit from the surplus of 1918, it is re-
duced to $ 37.202,088 currency and $ 20.062,221 gold.

This was the sum laid upon the financial operations of
1920, from its beginning, in spite of the fact that during this
ypsar the exportation of nitrate reached the high figure of
60.273,957 quintals, and the year closod with a deficit as
folio Avs:

1920

Surplus in gold $ 4.883,673

Deficit in currency 61.976,378

Leaving the surplus in gold an^ adding the currency defi-
cit of 1919, Ave arrive at a total deficit on December 31, 1920,
as show in the official balance sheet, of

60 INAUGURAL ADDRESS

11)20

Deficit in gold $ 15.178,547

Deficit en currency 99.178,466

There are four factors that have determined this financial
instability.

Firstly: the deficit of 1919: secondly the costs imposed on
the country by the mobilization, which, according to trea-
sury accounts reached 28 million pesos, including the bud-
get expenses directly due to it: thirdly, the increases of sa-
lary recently authorised; and fourthly, the purchase of new
naval units at a cost of £ 1.430,000, which would not been of
substantial importance were it not for the other three factors.

In consequence, the present administration, which ente-
red on its duties on December 23rd, 1920, that is to say,
eight days before the end of the year, has to devote all its
energy to the economic reconstruction of the country, the
re-establishment of the financial equibrium, and the payment
of the deficit produced by former events.

For this difficult and painful task it solicits the patriotic
co-operation of all Chilians, since apart from the difficulties
which this presents we struggle against the difficulties occa-
sioned by the coincidence of an alarming decrease in the
exportation of nitrate as the natural result of the paralization
in the consumption of this article.

Patriotism, Avhich should animate every Chilian, demands
the cessation of mutual recriminations, charges and counter-
charges, and the recognition of the fact that there lies upon
every citizen, and principally on the shouldoTs of the men
of the Government and legislators, the unavoidable civic
duty ot devoting every effor and all their intelligence to the
work of restoration, which assumes the magnitude of a pro.
blem of public salvation. On the background of this sombre
outline it is necessary to indicate the financial prospects of

the present year.

1921 Budget

The Budget aproved for 1921, discounting the expenses
covered by special funds, amounts to a total of $ 298.937,421
currency and $ 52.600,954 gold.

inaugural' ADDRE.S.S 51

The expenses authorised by different laws for payments
due in 1921, amount to 16.930,233 pesos currency and
1.077,433 pesos gold. The total obligations for the present
year, therefore amount to:

Currency $ 315.867,655

Gold.....'. 33.878,397

This represents the total expenditure to be met by the
Treasury in 1921, always supposing that no further law au-
thorizing expenditure or other form of outgoing occurs du-
ring the year.

To determine the probable revenue with which the State
is to pay the expenses referred to, it is neccessary to rectify
the calculation which served as the base on which the Bud-
get was draw up, which was the estimated quantity of Nitrate
to be exported.

From the data in possession of the Government, it appears
that up to date, 13 million quintals have been exported, and
it is known that a further 15 milliones have been sold, Avhich
will bring up the exportation only to 28 million quintals.

The Government fears that this figure Avill not be excee-
ded, unless the negotiations begun and actively continued,
are brought to a fortunate termination, which might bring
exportation up to 43 million quintals.

On the base of an exportation of 28 million quintals, the
total revenue to be derived from this source in gold would
amount only to 54 million eight hundred and ninety-seven
thousand pesos.

In consequence, taking the other sources of income ser-
ving as the base ot the budget as being presumably accurate,
we shall have 225 million 465,900 pesos revenue incurrency
and 54.897,000 pesos in gold, —figures which, compared
with the sum of the expenses I have referred to, will give
an excess of one million pesos in gold and a deficit of 90
million 400,000 pesos currency.

Adding this deficit to the 99 millions 178,466 pesos of the
currency deficit of 1920, we sh-ill have a total deficit of
$ 189.578,466 currency.

Deducting the excess of one million pesos gold from the
15 millions 178,547 of the previous deficit, this will be redu-

H$

INAUGURAL ADDRF8S

ced to 13 million 178,47 pesos. These figures represent the
deficit to be expected at the close of the present financial
year always supposing that, as I have said, the exportation
of salitre reaches 28 million quintals, ihat the other estima-
ted revenue is not less than that calculated on, and that no
emergency demands unexpected expenditure.

I have spoken with the frankness, which I consider the
chief magistrate owes to the opinion of the country. A gra-
ve sitnation presents itself, and in order to confront it, the
Government asked for, and obtained, from the National
Congress the disi)atch of therent Law affecting Stamps and
Documents, the ncAv Tabacco impost and the increase of
Customs House dues, but this is not sufficient, and however
painfnl it may be, it is necessnry to impose fresh taxation.
In fact, I have requested the prompt despatch of the la^v on
inheritance and income, which is under consideration, and
Avhich complies Avith the principle of social justice, imposing
on each person a tax proportional to his income in satisfac-
tion of collective requirements. It is necessary also to in-
troduce modifications in the present property tax, Avhich
has many unjust anomalies leading to the decrease of reve-
nue that should be derived from this source.

All the citizens of a country, of whatever class, quality or
condition, Avho own property Avithin the territory of ihe Re-
public, should contribute their due quota to the expenses in-
curred for the good of the community, and strictly speaking,
no one should enjoy the common benefits Avilhout contribu-
ting towards them.

The projects of taxation alluded to, though heavy in appea-
rance, Avill not suffice to restore the financial balance and
normalize the public expenses, for Avhich reason I have
brought before you the project of a Loan for $ 50.000,000
gold an 100.000,000 pesos currency.

Thi loan avIU imply the covering of the deficit for a term
of yearse, just as a private person does Avho finding his in-
come diminished from accidental causes, resorts to his cre-
dit for the time being, cancelling his loan from future re-
ceipts.

INAUGURAL ADDRESS 5-^

Many objections may be advanced ag'ainst tlic project re-
ferred to, but the fact remains and cannot be overlcoked,
that in order to carry on the vital services of the Nation,
and to normalize its working, it is absolutely necessary to
obtain funds that llie ordinary revenue cannot produce by
any means, and the only means of supplying the deficiency
known to man lies in the resource to internal or external
loans of some kind.

Apart from Avhat I have shoAvn, in order to improve the
financial conditions it is necessary, before all, to overcome
the crisis in in the Nitrate industry, and to this the Govern-
ment is giving constant attention.

Tlie Niti-ate I*A'ol>leiix

As you are aware, there exists in Europe a stock of about
nine hundred thousand tons, Avhich finds no purchasers, in
consequence partly of the difficult commercial situation
occasioned by the war, but chiefly as the result of the very
grave error of having placed the price too high.

On the Chilian coast there is a stock amounting to about
one million three hundred thousand tons of refined nitrate.

The problem presents two aspects; the one that of finding
a market for the nitrate already refined and which is either
in Europe or in Chile; the othe relating to the measures to
be adopted for the future, to avoid, if possible, the repeti-
tion of a situation that is occasioning such disastrous conse-
quences in our finances and in the general economic state
of the countrJ^

To deal with the first aspec of the problem, the Govern-
ment has requested the cooperation of the purchasers of the
stock of salitre in Europe and of the Producers in order to
arrange some means by which, facing a natural loss, new
markets may be opened to the fertilizer by a prudent re-
dnction in price.

As you will understand, the stock of nitrate being tor the
most part abroad and in possession of foreign OAvners, the
Government is not in a position to make use of coercive
measures, and it is further desirable to take no steps in the
present unfortunate circuratances calculated to prejudice for

54 INAlTGUiUL ADDRESS

the future the great purchasing power represented by the
present holders of the stocks. For these reasons it has not
yet been possible to arrive at any definite settlement, though
the government is confident that it will soon be able to
do so.

With regard to the Other aspect of the problem, which lo-
oks to the future of the industry, the Go Vermont considersil
a duty to state that artificial fertilizers now constitute formi-
dable adversaries of our product. It is a fact that cannot be
denied and that is confirmed by trustworthy official infoima-
tion, that the processes working in different countries pro-
duce an article of very good quality and Avhich hitherto Avas
able to compete in price with the nitrate, Chilian nitrate.

In consequence, following the fundamental laws of the
commercial struggle, it is absolutely necessary to transform
the commercial procedure followed up to the present by the
national industry, on the basis of fixing a minimum stable
price that will permit it to compete favourably with artificial
manures.

It is universally known that to insure the success of any
article in a given market, no other factors are necessary bu*^
good quality and low price. No one disputes the good quality
of salitre; if we can find the solution of the second formula
the problem will be solved. The Government believes that
the best way of settling the diftculty Avould be for the State
to purchase the salitre, paying the cost of production to the
the producer in order that be can continue working, and for
the State to sell it, fixtng the price at a sum sufficiently mo-
dest ani reasonably lower than that askel by its competitors.
What the Government wants is ab:^olute control over prices,
in order to dispose directly of the article under conditions
favourable to the consumer.

In exchange for this right, the State, Avhich at present re-
ceives a fixed tax representing in many cases double or tri-
ple the profit to the producer, renounces this impost, substi-
tuting for it an equal share of profits with the producer, which
would represent also, a more equable tax on the said profits.

This project has met with the resistance naturally opposed
to any new idea, especially such as goes against vested inte-

iNAlTGtTRAL AftDRfiSfi f>0

rests, but tlie Government lias the firm conviction tluit the
proposal Avill make Avay for itself in public opinion and will
finally be adopted.

Some oppose the system on the grounds that every Go-
vernment is a bad morchant, but we have never contempla-
ted the formation of a staff of employees to sell the article.
Since there are commercial channels already established
for the marketing of the article and firms with adequate
assistants, it is natural that tha Government should proceed
with due discretion ia the utilization of these forces and ele-
ments, availing itself of them and only reserving the one ob-
ject that it is pursuing, tha absolute control of prices to in-
sure that they are sufficiently low. Certainly, with our con-
ception of the laws, which ought to enunciate simple and
general ideas we have always contemplated leaving alone
the practical work of selling, subject t) the considerations
expressed above.

But the reserved right to fix the price would permit the
Government to defend nitrate from the competition of artifi-
cial fetilizers, prevent the speculation of the middle man
which raises the cost to an imaginary figure and settle the
market, to the great benefit of the country and of the pro-
ducer. The interests of speculators in nitrate are always op-
pose! to national interests and to those of the producer the
precise object of the project is the defence of these legiti-
mate interests.

Furthermore, tliere has always been great difficulty in se-
lling nitrate on consignment or locally, which would greatly
facilitate the consumption on account of the enormous ex-
ploitation capital required by an oficina, that requires the
immediate reembursementof the cost of material elaborated
in order to continue producing.

This project foresees and attends to this necessity, supply-
ing in the cost, the value of production and insuring to the
State itself a power adequate to finance an enterprise of
such magnitude.

On the other hand, the harmony of interests between the
Producer and the State promoted by the project, by com-
munity of profit constitutes a reciprocal guarantee for both,

f>6 iNAlTCaiHAL ADDRES.A

insurini;- llie succcoss of ihc common enterprise. The pre
ject aims at effecting four well defined ends: Firstly, to ren"
der the price stable at the lowest possible figure: Secondly,
to prevent all speculation in Nitrate; Thirdly, to facilitate
and make possible sales on the spot; Fourthly, to decentra-
lise the sales by means of the permanent establishment of
stocks in different countries, consigning the article to res-
ponsible hands.

The Government, as I have already said, does not think
that the last Avord has been spoken on this project, but main-
tains its efficacy and utility, and will continue to maintain it
until some better plan presents itself which shall guarantee
the defence and future prosperity of the industry, which is
so closely united to our revenue and the general economy
of the country. The Government w ill proceed prudently in
the matter, seeking a solution in harmony with the interests
of the producers.

IXationallzatioii of Insxii'aiice

I consider also that the Government ought to nationalize
the industry of insurance agains every kind of risk, and thus
obtain a considerable revenue in compensation for the mo-
nopoly which w^ould be handed over to the National Com-
panies.

I shall shortly submit to your consideration a project of
law embodying definite ideas in this respect, and which
would imply a large revenue to the State.

I have now placed before you the measures proposed by
Government to aid in facing the very grave financial situa-
tion which has been received as a sad heritage by the new
administration; that is to say, new taxation, rigid economy,
external or internal loan, control of the nitrate industry; and
finally, nationalization of Insurance on the basis of State
participation in the profits.

Fixingf^ tlie Exoliaiigj'e

The stabilization of money is a national aspiration. It has
been one of the ideas which the country had in view when
it favored the present speaker with its votes and it is an
idea which I shall tenaciously pursue throughout the whole
of my constitutional term.

iNAttOUnAL ADDRESS 57

But the value of the money and its stability are the inevi-
table result of the economic vitality of the nation, and cannot
be produced by measures solely artificial or legislative. It is
necessary to prepare the country with boldness and resolu"
tion in order to attain the ideal so justly desired and deman-
ded.

Before all, it is necessary, to obtain a fixed and stable cu-
rrency, to produce ordf^r and equilibrium in the national
finances. There can be no monetary stability in face of a bud-
get deficit. The present Administration, Avhich as I have al-
ready proved to you, has taken over the public finances
with a deficit amounting to fifteen millions one hundred and
seventy-eight thousand five hundred and forty pesos gold
and $ 99.178,466 paper, and must cancel this deficit before
it can proceed to the great work of fixing the value of the
money.

It is necessary, also, to impose a rigorous regimen of eco-
nomy in the public expenses and make this economy extend
also to private expenses, This problem cannot be solved by
the government or by the public authorities by themselves;
the CO operation of private individuals is also necessary
through economy in their expenditure, principally with re-
gard to articles brought in from abroad. Every dollar that
leaves our country is a factor in the weakening of our
money, and for this reason, if private persons are not suf-
ficiently self-denying to impose upon themselves the obliga-
tion of economy, the State can and will impose it on them
by means of laws prohibiting the entrance into the country
of useless articles and which come under the scope of sump-
tuary regulation.

Rights, private initiative, even when implyng the free
exercise of any faculty, may be and should be limited when
they affect the supreme interests of the community.B«aicroft Library

It is with this limitation of individual rights that every per-
son pays society for the benefits and well being thnt he
enjoys in it. Our Political Constitution also permits the po-
wer of limiting individual rights when the national interest
requires it.

58 INAUGURAL At>DRESft

Baiiliiug- and I»i.sin'aiice

It is necessary also to reform our Banking LaAv with a
view to the nationalization of this industry, as in the majo-
rity of civilized countries. This does not signify an act of
hostility to foreign banks, but, as in other countries our laws
should require that, in order to be established, they should
have an effective capital in the country and should leave in
it the greater portion of their profits. Under our present re-
gimen, Foreign Banks may establish themselves without ca-
pital, and with no other function than that of absorbing mo-
ney in the form of profits which are part of our national eco-
nomic vitality, and which, like all capital that emigrates,
signifies an unfavourable influence on our international
accounts.

I affirm the same with respect to the Insurance business,
which, nationalized, would be a source of State revenue and
would leave within the country profits Avhich Avould not have
10 go out, and which for no reason should be allowed to go
out, since they represent money paid by our merchants in
prevision of any accident.

It is also necessary to protect national industry and to in-
tensity our production by every means and in every possi-
ble way, in order to strengthen the economic energies of the
country. For this purpose a mass of legislation and adminis-
trative regulations are required, and above all, the assis-
tance of all citizens in practical and efficient form. To this
end harmony betAveen capital and labour should be sought,
by means of mutual and reciprocal agree iients between
masters and Avorkmen to avoid conflicts leading to strikes
that destroy the national wealth.

So far I have laid before you projects of law of the utmost
urgency, designed to bring about these results, but besides
these, the master must adjust their proceedings in such man-
ner as to obtain respect for their rights by respecting the
rights of the workmen, under the obvious consideration that
the latter shall duly attend to their duties.

It is equally necessary to construct every kind of pro-
ductive public works, and despatch, once for all, the project
relating to the National Mercantile Marine, which, equally

iNAtTGURAL ADDRESS 5&

with the legislation relating lo foreign Bank and Insurance
Companies, will impede the emigration of capital in the form
of profits.

A. Central Bank

Finally, among all the measures directed towards the sta-
bilization of Money, a preferential place should be given to
the despatch of the project of the Privileged Bank or Cen-
tral Office, which, already passed by the House of Deputies,
awaits the legislative sanction of the Senate, Avhere it ia
being studied by a commission of all parties and persons
well versed in affairs of this nature.

It is necessary to create this central organization which
is lacking among us, in order that, ful filling the function of
the Bank of Banks, it may form a secure refuge to which
these may apply, by means of redi>;counts, duly guaranteed,
to obtain emergencj'^ funds when necessary. In this way cre-
dit will be given stability, because the Banks being in con-
dition to turn over their portfolios, the peril, which frequen-
tly presents itself under our present regimen, of their being
over thown by a sudden and unexpected run of people de-
manding back their deposits, will be avoided, and they can
calmly satisfy their creditors, in the security that, if circums-
tances demand it, thay can obtain emergency funds.

Countries do not require at all times the same amount of
circulating medium. Its volume varies with the needs of the
moment, and it is necessary tliat there should exist an orga-
nization which sliould automatically augment or restrict the
said circulating medium, in conformity with the actual needs
of the market.

Further, the organization created by this project to which
I am referring, will have the exalted and necessary function
of administering the State fuids, of being a Government
bank, in order that the difflculties existing for years past
between the State and private Banks may cease; a situation
which has been unduly prolonged and which presents grave
difficulties of many kinds. The existence of this organization
Avill also render impossible the issue of paper money in an
experimental form, in benefit of private Banks, to the pre-

60 iNAltGllRAL ADDRESS

judice of the country in general, a-? lia^ ociirred among lu
in the case of issue later than 1898.

The lack of this organization brings about the strange ano-
maly that the Government plays the part proper to private
Banks, and is conlinmlly effecting operations of this charac-
ter in relation to the said institutions of credit, which usually
carry off large profits from the money that belongs to aU
and whicli should benefit all, if these operations were carried
out by an organization such as I am recommending.

In the same way it is necessary to complete the project
existing in the State. The Government will propose in the
discussion the measures necessary to give to the Central
Bank the power of intervening in questions of exchange, and
for delivering to it definite control over Letters of n^xchange,
to impede speculation and thus to kill this cause of mone-
tary instability, which if it is not the only determining, cause
of the fluctuations in the international value of the money*
is at least a predominant factor in the brusque oscillations
of rise and fall.

The measures relating to ihe immediate convertibility of
the currency notee stablished by the project, may be postpo-
ned in view of circumstances already referred to and which
would make the operation a disaster at the present moment,
but in exchange let us create this organization which is ne-
cessary to give order and regularity to credit and the ma-
nagement of treasury funds in the banking relations of the
Stale. Once created, it Avill be easy to endow it which the fa-
culties referred to, as the necessities of the country require
them. Oi.rs is now one of the few countries of the world that
lack such an organization, and you will earn the gratitude
of your fellow-citizens by dictnting this law Avhich is so grea-
tly required under present circumstances, and which embo-
dies the character of a measure of national salvation.

It is also necessary to dictate stringent regulations with
reference to speculation in international exchange, and in
the money market, since these games of chance not onlj'^
have a grave effect on the community, but divert funds that
should be applied to productive industries urgently needing
encouragement.

INAUGIIKAL ADDltEvSf? 61

The projects presented to this end, by different members
of Congress, in i;eneral with ihe approval of the Government,
will be duly pushed forward, the light of comment and sug-
gestion being reserved.

To sum up, to carry out tlie national desire for a stable
currency, it is necessary:

1. To pay off the deficit and obtain equilibrium in the
Budget expenditure of the Nation.

2. To maintain a rigid economy in jhs State and in pri-
vate expenditure.

3. To reform our Banking busniess with a view to its na-
tionalization.

4. To Nationalize Insurance of every desciiption.

5. To intensify the national production and protec natio-
nal industries.

6. To carry out every kind of productive public works.

7. To dictate laws in protection of national capital as in
the case of National Mercantile Marine.

8. Te severely repress speculation of every kind.

9. To establish the Central Bank, with every power for the
stabilization of currency.

Port Work.*!*

The port works under the charge of the Finance Ministry
have progressed without interruption, in spite of difficulties
owing to the financial conditions.

In the Port of Valparaiso, contrated for in 1912, with Messrs
Pearson and Son for the sum of $ 32.763,630 gold of 18d,
money has been invested, up to the end of 1920, to the sum
of $ 21.200,000 and by the end of 1921,$ 25.300,000 will have
been spent, equivalent to SOX of the total amount contrac-
ted. In consequence of the war the works have not procee-
ded with the expected rapidity, and it has been necessary
to allow the contractors a prolongation of three years and a
half, the works being due for delivery on November 20th,
1922.

The contiact made with Don Augusto Galtier for the fun-
damental work of the port of San Antonio for the sum of
$ 9.832,000 gold, was successfully terminated in 1917, and

62 INAUGURAL ADDRESS

the work definitely handed over. The war, which affected
the date of termination of these Avorks did not stop them,
however.

She complementary Avorks of San Antonio port, begun in
1918, aretried out by the national administration, and it is
satisfactory to state that it has been possible to carry them
out with an economy on the estimate. They will shortly be
completed, and further Avork authorised by the Minister of
Finance wil be effected during the present year.

On the 4th of September 1917 a law was dictated (N.<*
3,132) authorising the construction of the Antofagasta Port
Works, and in conformity there withe public tenders were
asked for, and a contract Avas entered into Avitli the Chilian
engineer Don Luis Legarriguo, for the sum of $ 22.689,301
gold.

The installations are now completed and the construction
of the breakwater has commenced, 100 metres of this mole
having already been corstructed.

The work of improvement of the culverts and roads in the
quebradas of Valparaiso have been proceeded Avilh, and the
work in the Quebrada San Agustin Avill shortly be comple-
ted at a cost of $ 250,272 gold of 18d. In the same way the
tunnel which aaIII carry off waste Avater from the Cabriteria
quebrada is practically finished, opening directly to the sea
to the east of the Andes Fort, and by means of which the
complete change of the channel of water from the Delicias
stream Avill be accomplished and an end put to the damage
frequently occasioned by floods to the populous quarter of
that name in Valparaiso.

By law N.« 3,352 of Feb., 13th of 1918, the Avork destined
to improve the Valdivia river has been authorised, the sums
set aside for that purpose being paid annually.

These works, begun in 1919, have been continued in spite
of the fact that the dredge was placed at the disposal, of the
Navy, the neccvssary constructions have been effected o ca-
nalise gradually the waters of the river, in accordance Avith
the project drawn up years ago by the engineer, don Eduar-
do Reyes Cox.

INAUGURAL ADDRESS • 6B

The project of law designed to regulate the programme of
porf work throughout the country is still awaithig the con-
sideration of Congress. This project, approved by the Cham-
ber of Deputies, deals with the port of Iquique, Constitucion,
Lebu, Talcahuano, Puerto Saavedra and Valdivia.

I recommend to you the early despatch of the law in or-
der that work of such national importance may be put in
hand as soon as the finances of the country permit.

The utilization of the port Avorks at San Antonio has al-
ready begun with excellent results, the movement in 1920
amounting to 131,401 tons, in spite of the difficulties and
strikes in the coal regions which lessened considerably the
movement in the port.

It has become necessary to push forward and prepare for
the exploitation of the different ports in Avhich the State has
undertaken work fixing definite courses for their deve-
lopment, for which reason it will be desirable to despatch
the project of la^v presented to the House of Deputies

Fellow Citizens of the Senate and House of
Deputies:

I have laid before you the facts with the frankness due to
you as my distinguished colleagues in the work of directing
the national destinies, and due to the public which has on-
trusted to me the treasure of its dearest hopes.

I have also sketched out the courses which ray Govern-
ment Avill impress upon them during the five years of my ad-
ministration aud which loyally and honourably correspond
to the ideals that have carried me to this elevated and res-
ponsible position.

Governments should have determined objects, precise
ideas, and I consider that it is iralossible to leave the future
ot the Republic to political vicissitudes and ministerial,
changes, for which reason I have endeavoured to manifest
to you my views on the different subjects and projects of
interest to the national vitality; to the end that all colleagues
in my administration shall seek the harmony of opinion and

64 • rN AUGURAL ADDRESS

unity of view necessary to j^ive due vigour and energy to
tiie action of the government.

1 have pointed out to you, without disguising their gravity^
the evils that are undermining the county, and I have indi-
cated the remedies Avhich, in my judgment, are appropriate
for each complaint.

In these circumstances it enly remains for me to remind
you that the moment for rapid and decisive action has
arrived,— action without vacillation and without fear.

There is Avithin me a faith that tells me that the good star
of my country will raise it triumphantly from its sad but
transitory prostration. This same faith assures me that with
all our political differences, there rises in the Chilian soul,
always ardent, always noble, the sentiment of patriotism
that will place above all other ideals the good of the Re-
public.

I appeal to those s'l-ntiments that dominate in the mem-
bers of Congress to ask the valuable assistance of their self
denied and their a\ isdom, in order that the deep desires of
the people may be translated into generous laAva, that social
harmony may be based on Avide foundations of justice, and
that the weakened veins of our economic organization may
be restored to full vigour. Such are the cardinal points to
which I would direct your gaze.

I am certain that I shall not call iii vain at your door Avhen
I ask you to aid me to save the Nation in moments of peril
and difficulty.

1 know, moreover, that with your efficacious and fruitful
action, united Avith my energetic, constant and decided
efforts, the results expected by our patriotism avIU be attai-
ned, demanded by the civic strength of our race, our pro-
gressive spirit, the good name of our country and its ho-
nourable traditions.

Arturo Alessandri.

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I mm'JssmrmK^m

CIRCULATION DEPARTMENT

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