Peru's financial house of cards, constructed on…

Peru's financial house of cards, constructed on guano, finally comes tumbling down by the 1870s.

As described by historian Paul Gootenberg, "Under the combined weight of manic activity, unrestrained borrowing, dismal choice of developmental projects, the evaporation of guano, and gross fiscal mismanagement, Peru's state finally col- lapsed. ..."

Ironically, the financial crisis occurs during the presidency of Manuel Pardo (1872-76), the country's first elected civilian president since independence and leader of the fledgling antimilitary Civilista Party (Partido Civilista — PC).