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 244 ^ HISTORY OF CHILE indemnification. The minister of foreign affairs replied at length to this as he had previously done to Senor Tavira, disclaiming that the riot before the Spanish legation was an insult to the Spanish flag, declar- ing that the paper "San Martin" had been publicly re- buked by the president, and that with respect to the coaling of the Peruvian vessels, the decree had been issued at a time when no state of open hostilities was supposed to exist between Spain and Peru, while, on the other hand, such a state did certainly exist when the Spanish vessels were refused the privilege, so that coal was then contraband. The minister closed by peremptorily refusing the proposal for the humiliating salute of the Spanish flag. Pereja then issued a second ultimatum, September 22nd, declaring that unless his demands were complied with all diplomatic relations would be severed by the 24th, and that he would afterward seek indemnification with the force at his command. To this Chile replied that she would hold Spain responsible for all damage sustained by her if such a course were pursued. Efforts were made by the foreign diplomatic corps in Santiago to dissuade Pereja from the course he was about to take, but without avail, as his intentions evidently were to provoke a quarrel. Then the Chilean congress pre- pared for war. A war loan of $20,000,000 was author- ized, and powers granted the president for raising troops and obtaining war vessels. Agents were dis- patched to the United States and to Europe to pro- cure munitions of war. Admiral Pereja's fleet consisted of seven vessels in the ports of Chile, carrying altogether one hundred and sixty-seven guns, and one, the ironclad frigate "Numancia, " of forty guns at Callao. With these he undertook to blockade some forty ports, but yielding