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As Loyola was of a generous disposition, he could not avoid admiring the noble and enlightened sentiments of the barbarian ambassador, and dismissed him with the strongest demonstrations of esteem. Yet so far was he from any idea of abandoning the posts already established in the Araucanian territory, that he crossed the Biobio in 1594, and founded a new city at a short distance from that river, giving it the name of Coya in honour of his wife a Peruvian princess. This place was intended to protect the rich gold mines of Kilacoyan, and to serve as a place of retreat for the inhabitants of Angol in case of need; and in order to render it more secure, he constructed two castles in its immediate neighbourhood, named Jesus and Chivecura, on either shore of the Biobio. Solicitous to destroy this new settlement, which he considered as a disgrace to his administration, Paillamachu sent in 1595, one of his officers named Loncothequa, with orders to destroy the fort of Jesus. After twice penetrating within the works, and even burning a part of the interior buildings of this place, Loncothequa lost his life without being able to accomplish the enterprise.

In 1596, the toqui made frequent incursions into all the Spanish districts, both within and adjoining the Araucanian territory, on purpose to subsist his troops and to inure them to a military life. The Spanish army attempted in vain to prevent or pursue these predatory detachments, as the wary Paillamachu took the utmost care to avoid any encounter, determined to reserve his force for some favourable occasion. On purpose to restrain these incursions Loyola erected two additional forts in the neighbourhood of the encampment or head-quarters of the toqui, one on the scite of the old fort of Puren, and the other on the borders of the marshes of Lumaco, which he garrisoned with the greater part of a reinforcement of troops which he had just received from Peru. He sent the remainder of these in 1597 to the province of Cujo, where they founded a new city, called San Luis de Loyola, which still subsists in a miserable condition, though placed in a very advantageous situation.

The fort of Lumaco was soon afterwards taken by storm, by the toqui in person, who gave orders to two of his officers to reduce that of Puren. In ten days they reduced the garrison to the last extremity, but had to desist from the enterprise by the approach of a reinforcement under the command of Pedro Cortes, a Spanish officer who acquired great reputation in the Araucanian war. The governor Loyola arrived there soon afterwards with his army, and gave orders to demolish the fortifications and to remove the garrison to Angol, lest it might experience a similar fate with what had so recently happened to the fort of Lumaco. He then proceeded to Imperial, Villarica and Valdivia, the fortifications of which places he carefully repaired, to secure them against the increasing strength of the enemy, and then returned towards the Biobio under the security of an escort of three hundred men. As soon as he thought himself in a place of security, he ordered back the escort, retaining only along with himself and family sixty-two half-pay officers and three Franciscan friars. Paillamachu had secretly followed and watched all the motions of the governor, and concluded that he had now found a favourable opportunity to attack him. Finding him accordingly encamped in the pleasant valley of Caralava, he attacked him with a select band of two hundred Araucanians, on the night of the 22d November 1598, and slew Loyola and all his retinue.

It would appear that Paillamachu had formed confident hopes in the successful issue of this bold enterprise, and that it had been long concerted: as, in consequence of his instructions, the whole provinces of the Araucanian confederacy, and their allies the Cunches and Huilliches, were in arms in less than forty-eight hours after the slaughter of Loyola. In the whole of that country, from the Biobio to the archipelago of Chiloe, every Spaniard who had the misfortune to be found without the garrisons was put to death; and the cities and fortresses of Osorno, Valdivia, Villarica, Imperial, Canete, Angol, and Arauco, were all invested at the same time by close blockades. Paillamachu had even the boldness to cross the Biobio, burned the cities of Conception and Chillan, laid waste the provinces under their dependence, and returned into Araucania loaded with spoil.

On the first intelligence of these melancholy events, the inhabitants of St Jago were filled with consternation and despair, and were almost unanimously of opinion to abandon Chili and take refuge in Peru. Yet, having some confidence in Pedro de Viscara, an officer of reputation then beyond seventy years of age, they assembled in council and prevailed on him to assume the government of the kingdom till the court might appoint a successor to Loyola. Viscara, having collected all the troops that could be procured, began his march for the frontiers in 1599, and had even the courage to cross the Biobio in the face of the enemy, and withdrew the inhabitants from Angol and Coya, with whom he repeopled the cities of Conception and Chilian. The government of Viscara only continued for six months; as on learning the perilous situation of Chili, the viceroy of Peru sent Don Francisco Quinones thither as governor, with a numerous reinforcement of soldiers and a large supply of military stores. The new governor had several indecisive actions with the toqui to the north of the river Biobio, to which the Araucanians had gone on purpose to ravage the southern provinces of Spanish Chili. The most important of these was in the plain of Yumbal. The toqui was on his return into the south from a successful inroad at the head of two thousand men, and with a great number of cattle of all kinds which he had taken in the province of Chillan, and Quinones attempted to intercept his retreat with an equal force, the greater part of which consisted of Spanish troops. The two armies advanced with equal resolution, and the Spaniards attempted in vain to keep the Araucanians at a distance by a constant fire from eight field pieces and all their musquetry. They soon came to close quarters, and the battle continued with incredible fury for more than two hours, till night parted them; when Paillamachu took advantage of the darkness and repassed the Biobio. On this occasion, the governor made an improper display of severity, by ordering all his prisoners to be quartered and hung upon trees, which was much disapproved of by his officers, who, either from humanity or a motive of self-interest, urged him not to give the enemy a pretence for retaliating by similar cruelties. But Quinones obstinately adhered to an old maxim of endeavouring to conquer by means of terror, and was deaf to all their remonstrances. We are ignorant of the loss sustained by the Spaniards in this battle, but it must have been considerable, as Arauco and Canete were both immediately abandoned, and their inhabitants withdrawn to the city of Conception.

Paillmachu does not seem to have been at all disconcerted by the issue of the late battle, as he continued the sieges of the Spanish cities, and was himself in constant motion; sometimes encouraging by his presence the forces that were employed in blockading the cities, and at other times ravaging the Spanish provinces to the north of the Biobio, where he did infinite mischief. Having learnt that the siege of Valdivia had been raised by the officer whom he had entrusted with that enterprise, he hastened to that place with four thousand men, part cavalry, seventy of his infantry being armed with musquets which he had taken from the Spaniards in the late engagements. On the night of the 14th of November91 he crossed the broad river of Calacala by swimming, unsuspected by the garrison, stormed the city at day-break, killed a great number of the inhabitants, and burnt the houses. He even attempted to gain possession of some vessels in the harbour, on board of which many of the inhabitants had taken refuge, but these escaped his fury by immediately setting sail. After this notable exploit, he returned in triumph into the north of Araucania with a booty of two millions of dollars, upwards of four hundred prisoners, and a considerable number of cannon; and rejoined Millacalquin, an officer to whom he had entrusted the defence of the Biobio during his absence.

Ten days after the destruction of Valdivia, Francisco del Campo arrived there by sea from Peru with a reinforcement of three hundred men; and finding it in ashes, he ineffectually endeavoured to introduce these succours into Osorno, Villarica, and Imperial92. Amid so many misfortunes, an expedition of five ships from Holland arrived on the coast of Chili in 1660, which plundered the island of Chiloe and put the Spanish garrison to the sword. But on a part of their people landing in the island of Talca or Santa Maria93, inhabited by the Araucanians, they were repulsed with the loss of twenty-three men, being probably mistaken for Spaniards.

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91

According to Garcilasso, Valdivia was taken on the 24th of November 1599. In a letter from St Jago in Chili, dated in March 1600, and inserted in the Royal Commentaries of Peru, P.I.B. vii. Ch. xxv. the Araucanian army on this occasion is said to have amounted to 5000 men, 3000 of whom were horse. Of the foot, 200 were armed with coats of mail, and 70 with fire-arms, as was said. They surprised the city at daybreak without the smallest alarm, there being only four men on guard, two of whom went the rounds, the Spaniards being lulled into security by some recent successes in two different incursions they had lately made into the country, which they had laid waste for eight leagues all around during twenty days.-E.

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92

In the letter quoted from Garcilasso in the preceding note, Del Campo is said to have raised the siege of Osorno and to have performed other actions of happy consequence.-E.

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93

St Mary's island is on the coast of Araucania, in lat. 37° S.-E.