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Rh the foundations were laid of the administrative organization and the political constitution of Peru. One of his first measures was to create a national army. Under the name of the "Peruvian Legion" he organized a division, recruited among the natives, composed of a regiment of infantry under Miller, one of cavalry under Brandzen, and a company of artillery with four guns. He reorganized the finances and reformed the commercial system. He abolished the personal service of the indigenous races, the poll-tax, and other oppressive customs. He manumitted all slaves who would join the army, and declared free all who might in future be born of slave parents. Corporal punishment was forbidden in the public schools; a national library was founded; the press was set free from all unnecessary restrictions; torture and excessive punishments were abolished. All which reforms and many others were carried out in pursuance of ideas brought by Monteagudo from the River Plate.

San Martin also issued a decree defining his own powers, and recognised such debts of the late authorities as had not been contracted for war purposes; but he did not draw up any plan for the political organization of the country, leaving that question for future solution.

The Peruvian nobility were left with their titles and escutcheons; San Martin looked upon them as a social influence of which good use might be made. He also instituted a new order, the "Order of the Sun," in imitation of the "Legion of Honour," instituted by Napoleon, as had previously been done in Chile by the institution of "The Legion of Merit"; and also a special decoration for women who distinguished themselves by services in the Patriot cause, a gold medal with a suitable inscription, which, however, was distributed with more gallantry than discretion, and gave rise to much scandal, some of which has not even yet died out. All this was in preparation for the establishment of that monarchy, the idea of which was still in the air.