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Having declared war against the Spaniards, Vilumilla set out immediately at the head of an army to attack the Spanish settlements: Yet before commencing hostilities, he requested the missionaries to quit the country, that they might not be injured by his detached parties. Vilumilla signalized the commencement of this new war by taking the fort of Tucapel by storm. Being apprehensive of a similar fate, the garrison of Arauco abandoned that place. After destroying these two forts, Villumilla directed his march for Puren, of which he expected to gain possession without resistance. But the commander made so vigorous a defence that he was under the necessity of besieging it in form. In a short time the garrison was reduced to extreme distress, both from scarcity of provisions and want of water, the aqueduct which brought water to the fort being destroyed by the enemy. During a sally made by the commander to obtain supplies, he and all his followers were slain. In this critical situation, Don Gabriel Cano, who had succeeded Concha in the government, arrived with an army of five thousand men. As Vilumilla expected an immediate attack, he chose a strong position for his army which he drew up in order of battle behind the deep bed of a torrent: But, though repeatedly challenged to battle by the enemy, Cano thought it more prudent to abandon the place, and accordingly withdrew the remainder of the garrison. The war was afterwards reduced to skirmishes of small importance, and was soon terminated by a peace concluded at Negrete, a place situated at the confluence of the Biobio and the Laxa, by which the provisions of the treaty of Quillan were renewed, and the odious title of captains of the friends abolished.

After a mild and harmonious government of fifteen years, Don Gabriel Cano died at St Jago, and was succeeded by his nephew Don Manuel de Salamanca, who was appointed by the viceroy of Peru, and who conducted the government in conformity with the excellent maxims of his uncle. Don Joseph Manso, who was sent from Spain as his successor, brought orders to collect the Spanish inhabitants who were dispersed over the country into cities. For this purpose, in 1742, the new governor founded the cities of Copaipo, Aconcagua, Melipilla, Rancagua, San Fernando, Curico, Talca, Tutaben, and Angeles. In reward for this service, he was promoted to the high dignity of viceroy of Peru. His successors continued to form new establishments, and in 1753, Santa Rosa, Guasco-alto, Casablanca, Bellaisla, Florida, Coulemu, and Quirigua were founded by Don Domingo Rosas; but these have never flourished like the former. This governor likewise sent a colony to occupy the larger island of Juan Fernandez, or Isola de Tierra, which had remained uninhabited till that time, to the great injury of commerce, as the pirates found there a secure retreat whence they could easily annoy the trade of Peru and Chili. In 1759, Don Manuel Amat, who was afterwards Viceroy of Peru, founded the cities of Santa Barbara, Talcamavida, and Gualqui on the Araucanian frontier.

Tranquillity was again disturbed about the year 1770, under the government of Don Antonio Gil Gonzago, who absurdly endeavoured to compel the Araucanians to live in cities. Many councils were held to devise the most suitable means for carrying this chimerical scheme into execution, which was much ridiculed by those who were best acquainted with the dispositions of the Araucanians, while others sided with the governor in supposing it practicable. The Araucanians were informed of these intentions of the governor by their spies; and being apprehensive of danger to their liberties from the proposed innovation, their chiefs met secretly to deliberate upon the best measures for eluding the designs of the governor without having recourse to arms. On this occasion the following resolutions were entered into by the Butacoyog, or national assembly of the ulmens. 1st, To delay the business as long as possible, by equivocal replies and delusive promises. 2d, When pressed to commence building, to require tools and other necessary aids from the Spaniards. 3d, To have recourse to war, when they found themselves no longer able to elude the demands of the governor; but that only the provinces that were compelled to build should declare war, while the others remained neutral on purpose to mediate a peace. 4th, When the mediation of these should be refused, the whole confederacy to join in the war. 5th, To allow the missionaries to depart in safety, as they had nothing to accuse them of but being Spaniards. 6th, To elect a supreme toqui, who should have the charge of executing these resolutions, and was to have every thing in readiness for taking the field when necessary.-Accordingly Antivilu, apo-ulmen of Maquegua, was unanimously elected toqui; but as his province was one of those which were to remain neutral, he declined to accept the office, and Curignancu, brother to the ulmen of Encol was elected in his stead.

At the first conference, the governor proposed his plan to the Araucanians under every aspect that he thought might render it acceptable and agreeable. In pursuance of their previous agreement, the Araucanians objected, equivocated, and at length appeared to consent, but ended by requesting the necessary assistance for beginning the work. Accordingly, having pointed out the situations which he thought most eligible for the new cities, the governor sent them a great quantity of wrought iron, together with provisions for the labourers, and cattle for transporting the timber. As the work made no progress, the quarter-master Cabrito repaired to the frontiers with several companies of soldiers, to stimulate the tardy operations, and placed for this purpose superintendents in different quarters. The serjeant-major Rivera, was entrusted with the building of Nininco, and Captain Bargoa with that of another city on the banks of the Biobio, while Cabrito directed all the operations from his head-quarters at Angol.

Finding all their acts of equivocation and delay ineffectual, the Araucanians flew to arms, and having united to the number of five hundred men under the toqui Curignancu, they proceeded to besiege Cabrito in his camp. Burgoa, who had been made prisoner and very roughly treated, was set at liberty in consequence of being represented as inimical to the quarter-master. Rivera crossed the Biobio in sight of the enemy who were seeking to slay him, but he got away in safety under the protection of a missionary, and afterwards returned with four hundred men to relieve Cabrito. Another missionary requested the Araucanian officer who escorted him, to forgive a Spaniard by whom he had been grievously offended: The Araucanian answered that he had nothing to fear while in company with the missionary; and that it was now no time to think of revenging private injuries. Such was the attention paid to the sanctity of the missionaries, that not a single Spaniard was slain who had the good fortune of getting under their protection.

In order to attack the Araucanians in several places at once, the governor formed an alliance with the Pehuenches, who inhabit the western slopes of the Andes between the latitudes of 33° 30' and 36° S. and between the heads of the rivers Maypo and Chillan. They accordingly sent an army through the defiles of the mountains to invade Araucania: But Curignancu, being informed of their approach, fell upon them by surprise while descending from the Andes and completely routed them, taking their general Coligura and his son, both of whom he put to death. Though this event might have been supposed calculated to occasion eternal enmity between the Pehuenches and Araucanians, it yet so effectually reconciled them, that the Pehuenches have been ever since faithful allies to the Araucanians, and implacable enemies to the Spaniards. Even in this war, Curignancu availed himself of the assistance of these mountaineers to harass the Spanish possessions in the neighbourhood of St Jago. Since that time, the Pehuenches frequently attack the Spanish caravans between Buenos Ayres and Chili, and almost every year furnishes some melancholy events of that kind.