José Manuel Balmaceda, as Chile's new president,…

José Manuel Balmaceda, as Chile's new president, reorganizes his cabinet in March, 1887, and accords portfolios to two of the most bitter opponents to the recent election, but Balmaceda's imperious temper little fits him for the post in spite of his great capacity.

He institutes wide-reaching reforms, believing that he has now secured the support of the majority in congress on behalf of any measures he decides to put forward.

Balmaceda initiates an unparalleled policy of heavy expenditure on public works, the building of schools, and the strengthening of the naval and military forces of the republic.

Contracts are given out to the value of six million pounds for the construction of railways in the southern districts; some ten million dollars are expended in the erection of schools and colleges; three cruisers and two seagoing torpedo boats are added to the squadron; the construction of the naval port at Talcahuano is actively pushed forward; new armament is purchased for the infantry and artillery branches of the army, and heavy guns are acquired for the purpose of permanently and strongly fortifying the neighborhoods of Valparaíso, Talcahuano and Iquique.

In itself, this policy is not unreasonable, and in many ways extremely beneficial for the country.

Unfortunately, corruption creeps into the expenditure of the large sums necessary to carry out this program.

Contracts are awarded by favor and not by merit, and the progress made in the construction of the new public works is far from satisfactory.

The opposition in congress to President Balmaceda begins to increase rapidly towards the close of 1887.