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 Contents v

International Economics
James Gerber
San Diego State University

SEVENTH EDITION

New York, NY

A01_GERB2096_07_SE_FM.indd 5 10/7/16 7:19 PM

 For Monica and Elizabeth.
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Library of Congress Cataloging-in-Publication Data

Names: Gerber, James, author.

Title: International economics / James Gerber, San Diego State University.
Description: Seventh edition. | Boston: Pearson Education, [2018]
Identifiers: LCCN 2016042070| ISBN 9780134472096 | ISBN 0134472098
Subjects: LCSH: International economic relations. | International economic
integration. | International trade. | Commercial policy. | United
States—Foreign economic relations.
Classification: LCC HF1359 .G474 2018 | DDC 337—dc23 LC record available at https://lccn.loc.gov/2016042070

10 9 8 7 6 5 4 3 2 1

ISBN 10: 0-13-447209-8

ISBN 13: 978-0-13-447209-6

A01_GERB2096_07_SE_FM.indd 6 10/7/16 7:19 PM

 Brief Contents

Preface xvii

part 1 Introduction and Institutions 1

Chapter 1 An Introduction to the World Economy 2
Chapter 2 International Economic Institutions Since World War II 17

Part 2 International Trade 41

Chapter 3 Comparative Advantage and the Gains from Trade 42
Chapter 4 Comparative Advantage and Factor Endowments 65
Chapter 5 Beyond Comparative Advantage 94
Chapter 6 The Theory of Tariffs and Quotas 116
Chapter 7 Commercial Policy 138
Chapter 8 International Trade and Labor and Environmental Standards 158

part 3 International Finance 183

Chapter 9 Trade and the Balance of Payments 184
Chapter 10 Exchange Rates and Exchange Rate Systems 214
Chapter 11 An Introduction to Open Economy Macroeconomics 250
Chapter 12 International Financial Crises 276

part 4 Regional Issues in the Global Economy 307

Chapter 13 The United States in the World Economy 308
Chapter 14 The European Union: Many Markets into One 334
Chapter 15 Trade and Policy Reform in Latin America 365
Chapter 16 Export-Oriented Growth in East Asia 392
Chapter 17 China and India in the World Economy 421

Glossary  447
Index  459

Suggested Readings are available at www.pearsonhighered.com

vii

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 CONTENTS

Preface xvii Capital Flows and the Debt of

Developing Countries (Chapters 2,
PART 1 Introduction and 9, and 12)
Latin America and the World
14

Institutions 1 Economy (Chapter 15) 14

Chapter 1 An Introduction to the Export-Led Growth in East Asia
World Economy 2 (Chapter 16) 14
Introduction: International Economic China and India in the World
Integration 2 Economy (Chapter 17) 15
Elements of International E­ conomic Vocabulary 15 • Study Questions 15
Integration 3
The Growth of World Trade 4 Chapter 2 International Economic
Capital and Labor Mobility 6
Institutions Since
Features of Contemporary
International Economic Relations 8
World War II 17
Trade and Economic Growth 10 Introduction: International Institutions
and Issues Since World War II 17
Twelve Themes in International
International Institutions 17
Economics 11
A Taxonomy of International
The Gains from Trade and New Trade
Economic Institutions 18
Theory (Chapters 3, 4, and 5) 11
Wages, Jobs, and Protection The Imf, the World Bank, and
(Chapters 3, 6, 7, and 8) 11 the Wto 19
Trade Deficits (Chapters 9, 11, and 12) 12 The IMF and World Bank 19
Regional Trade Agreements The GATT, the Uruguay Round,
(Chapters 2, 13, and 14) 12 and the WTO 20
The Resolution of Trade Conflicts CASE STUDY: The GATT Rounds 22
(Chapters 2, 7, and 8) 12 Regional Trade Agreements 23
The Role of International Five Types of Regional Trade
Institutions (Chapters 2, 8, and 12) 13 Agreements 23
Exchange Rates and the CASE STUDY: Prominent Regional
Macroeconomy (Chapters 10 Trade Agreements 24
and 11) 13 Regional Trade Agreements and
Financial Crises and Global the WTO 26
Contagion (Chapter 12) 13 For and Against RTAs 27

ix

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 x Contents

The Role of International Economic CASE STUDY: Changing Comparative

Institutions 28 Advantage in the Republic
The Definition of Public Goods 29 of Korea, 1960–2010 55
Maintaining Order and Reducing Comparative Advantage and
Uncertainty 29 “Competitiveness” 57
CASE STUDY: Bretton Woods 31
Economic Restructuring 58
Criticism of International Institutions 33 CASE STUDY: Losing Comparative
Sovereignty and Transparency 33 Advantage 60
Ideology 34
Summary 62 • Vocabulary 62 • Study
Implementation and Adjustment
Questions 63
Costs 35
CASE STUDY: China’s alternative
to the IMF and World Bank: Chapter 4 Comparative Advantage
The AIIB 36 and Factor Endowments 65
Summary 37 • Vocabulary 38 • Study Introduction: The Determinants of
Questions 39 Comparative Advantage 65
Modern Trade Theory 66
The HO Trade Model 66
PART 2 International Gains from Trade in the HO Model 67
Trade 41 Trade and Income Distribution 70
The Stolper-Samuelson Theorem 71
Chapter 3 Comparative Advantage The Specific Factors Model 73
and the Gains from Trade 42 CASE STUDY: Comparative Advantage
Introduction: The Gains from Trade 42 in a Single Natural Resource 75
Adam Smith and the Attack on Empirical Tests of the Theory of
Economic Nationalism 42 Comparative Advantage 76
A Simple Model of Production Extension of the Ho Model 77
and Trade 44 The Product Cycle 78
Absolute Productivity Advantage and CASE STUDY: United States–China
the Gains from Trade 44 Trade 80
CASE STUDY: Gains from Trade in Foreign Trade versus Foreign
Nineteenth-Century Japan 46 Investment 81
Comparative Productivity Advantage Off-Shoring and Outsourcing 83
and the Gains from Trade 47 CASE STUDY: Off-Shoring by
The Production Possibilities Curve 48 U.S. Multinational Corporations 84
Relative Prices 49 Migration and Trade 85
The Consumption Possibilities Curve 49 The Impact of Trade on Wages and Jobs 87
The Gains from Trade 50 CASE STUDY: Do Trade Statistics
Domestic Prices and the Trade Price 52 Give a Distorted Picture of Trade
Absolute and Comparative Productivity Relations? The Case of the
Advantage Contrasted 53 iPhone 3G 89
Gains from Trade with No Absolute Summary 90 • Vocabulary 91 • Study
Advantage 54 Questions 92

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 Contents xi

Chapter 5 Beyond Comparative Effective Versus Nominal Rates of

Advantage 94 Protection 126
CASE STUDY: The Uruguay and
Introduction: More Reasons to Trade 94
Doha Rounds 127
Intraindustry Trade 95
Analysis of Quotas 129
Characteristics of Intraindustry Trade 96
Types of Quotas 130
The Gains from Intraindustry Trade 98
The Effect on the Profits of Foreign
CASE STUDY: United States and
Producers 130
Canada Trade 100
Hidden Forms of Protection 132
Trade and Geography 101 CASE STUDY: Intellectual Property
Geography, Transportation Costs, Rights and Trade 133
and Internal Economics of Scale 101
CASE STUDY: The Shifting Geography Summary 135 • Vocabulary 135 •
of Mexico’s Manufacturing 102 Study Questions 136
External Economies of Scale 103
Trade and External Economies 104
Chapter 7 Commercial Policy 138
Industrial Policy 105
Introduction: Commercial Policy,
Industrial Policies and Market
Tariffs, and Arguments for
Failure 106
Protection 138
Industrial Policy Tools 108
CASE STUDY: Clean Energy and Tariff Rates in the World’s Major
Industrial Policy 109 Traders 139
Problems with Industrial Policies 110 The Costs of Protectionism 141
CASE STUDY: Do the WTO Rules The Logic of Collective Action 142
Against Industrial Policies Hurt CASE STUDY: Agricultural
­Developing Countries? 111 Subsidies 143
TRIMs Agreement 112 Why Nations Protect Their Industries 145
SCM Agreement 112 Revenue 145
TRIPS Agreement 113 The Labor Argument 146
Summary 113 • Vocabulary 114 • The Infant Industry Argument 147
Study Questions 114 The National Security Argument 148
The Cultural Protection Argument 148
Chapter 6 The Theory of Tariffs The Retaliation Argument 148
and Quotas 116 CASE STUDY: Traditional Knowledge
and Intellectual Property 149
Introduction: Tariffs and Quotas 116
Analysis of a Tariff 116 The Politics of Protection in the
Consumer and Producer Surplus 117 United States 151
Prices, Output, and Consumption 118 Antidumping Duties 151
Resource Allocation and Income Countervailing Duties 153
Distribution 120 Escape Clause Relief 153
CASE STUDY: A Comparison of Section 301 and Special 301 154
Tariff Rates 122 CASE STUDY: Economic Sanctions 154
Other Potential Costs 124 Summary 156 • Vocabulary 157 •
The Large Country Case 125 Study Questions 157

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 xii Contents

Chapter 8 International Trade and Introduction to the Financial Account 188

Labor and Environmental Types of Financial Flows 188
­Standards 158 MyEconLab Real-time Data 189
Limits on Financial Flows 194
Introduction: Income and Standards 158
CASE STUDY: The Crisis of 2007–2009
Setting Standards: Harmonization, and the Balance of Payments 195
Mutual Recognition, or Separate? 159
The Current Account and the
CASE STUDY: Income, Environment,
Macroeconomy 196
and Society 161
The National Income and Product
Labor Standards 162 Accounts 197
Defining Labor Standards 163 Are Current Account Deficits
CASE STUDY: Child Labor 164 Harmful? 202
Labor Standards and Trade 166 CASE STUDY: Current Account
Evidence on Low Standards as a Deficits in the United States 203
Predatory Practice 167
International Debt 205
CASE STUDY: The International
CASE STUDY: Odious Debt 206
Labour Organization 168
The International Investment Position 208
Trade and the Environment 170
Transboundary and Summary 209 • Vocabulary 210 •
NonTransboundary Effects 170 Study Questions 210
CASE STUDY: Trade Barriers and APPEnDIx A: Measuring the
Endangered Species 172 International Investment
Alternatives to Trade Measures 173 Position 211
Labels for Exports 174 APPEnDIx B: Balance of Payments
Requiring Home Country Standards 175 Data 212
Increasing International Bureau of Economic Analysis 212
Negotiations 176 International Financial Statistics 212
CASE STUDY: Global Climate Balance of Payments Statistics 212
Change 177 APPEnDIx C: A Note on Numbers 213
Summary 179 • Vocabulary 180 • Study
Questions 180 Chapter 10 Exchange Rates and
Exchange Rate Systems  214
Introduction: Fixed, Flexible, or
Part 3 International In-Between? 214
Finance 183 Exchange Rates and Currency Trading 215
Reasons for Holding Foreign
Chapter 9 Trade and the Balance Currencies 216
of Payments 184 Institutions 217
Introduction: The Current Account 184 Exchange Rate Risk 218
The Trade Balance 185 The Supply and Demand for
The Current and Capital Foreign Exchange 219
Account Balances 185 Supply and Demand with Flexible
MyEconLab Real-time Data 187 Exchange Rates 219

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 Contents xiii

Exchange Rates in the Long Run 220 The Long Run 266
Exchange Rates in the Medium CASE STUDY: Argentina and the
Run and Short Run 224 Limits to Macroeconomic Policy 267
CASE STUDY: The Largest Market Macro Policies for Current Account
in the World 228 Imbalances 269
The Real Exchange Rate 230 The Adjustment Process 269
Alternatives to Flexible Exchange CASE STUDY: The Adjustment
Rates 232 Process in the United States 271
Fixed Exchange Rate Systems 233 Macroeconomic Policy Coordination in
CASE STUDY: The End of the Developed Countries 272
Bretton Woods System 236 Summary 273 • Vocabulary 274 •
Choosing the Right Exchange Rate Study Questions 275
System 238
CASE STUDY: Monetary Unions 240
Single Currency Areas 242 Chapter 12 International Financial
Conditions for Adopting a Single Crises 276
Currency 243 Introduction: The Challenge to
CASE STUDY: Is the NAFTA Region Financial Integration 276
an Optimal Currency Area? 245
Definition of a Financial Crisis 277
Summary 246 • Vocabulary 247 •
Vulnerabilities, Triggers, and
Study Questions 247
Contagion 279
APPEnDIx: The Interest Rate Parity Vulnerability: Economic
Condition 248 Imbalances 280
Vulnerability: Volatile Capital
Chapter 11 An Introduction to Flows 281
How Crises Become International:
Open Economy
Contagion 282
Macroeconomics 250
CASE STUDY: The Mexican Peso
Introduction: The Macroeconomy Crisis of 1994 and 1995 283
in a Global Setting 250
Domestic Issues in Crisis Avoidance 286
Aggregate Demand and Aggregate Moral Hazard and Financial Sector
Supply 251 Regulation 287
Fiscal and Monetary Policies 256 Exchange Rate Policy 288
Fiscal Policy 256 Capital Controls 288
Monetary Policy 257 CASE STUDY: The Asian Crisis of
CASE STUDY: Fiscal and Monetary 1997 and 1998 290
Policy during the Great Domestic Policies for Crisis
Depression 259 Management 294
Current Account Balances Revisited 262 Reform of the International Financial
Fiscal and Monetary Policies, Interest Architecture 295
Rates, and Exchange Rates 263 A Lender of Last Resort 296
Fiscal and Monetary Policy and Conditionality 297
the Current Account 264 Reform Urgency 298

A01_GERB2096_07_SE_FM.indd 13 10/7/16 7:19 PM

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 xiv Contents

CASE STUDY: The Global Crisis The Size of the European Market 336
of 2007 299 The European Union and its
Summary 302 • Vocabulary 304 • Predecessors 337
Study Questions 304 The Treaty of Rome 338
Institutional Structure 338
Deepening and Widening the
PART 4 Regional Issues Community in the 1970s and 1980s 340
in the Global Before the Euro 340
Economy 307 The Second Wave of Deepening:
The Single European Act 342
Chapter 13 The United States in the CASE STUDY: The Schengen
World Economy 308 Agreement 343
Introduction: A Changing World The Delors Report 344
Economy 308 Forecasts of the Gains from the
Single European Act 345
Background and Context 309 Problems in the Implementation
The Shifting Focus of U.S. Trade of the SEA 346
Relations 310
CASE STUDY: The Erasmus+
CASE STUDY: Manufacturing in the
Program and Higher Education 348
United States 311
The Third Wave of Deepening:
The Nafta Model 314 The Maastricht Treaty 349
Demographic and Economic Monetary Union and the Euro 350
Characteristics of North America 314 Costs and Benefits of Monetary
Canada–U.S. Trade Relations 315 Union 351
Mexican Economic Reforms 317 The Political Economy of the Euro 353
The North American Free Trade
CASE STUDY: The Financial Crisis
Agreement 319
of 2007–2009 and the Euro 354
Two NAFTA-Specific Issues 320
CASE STUDY: Ejidos, Agriculture, Widening the European Union 358
and NAFTA in Mexico 322 New Members 358
CASE STUDY: Spain’s Switch from
New and Old Agreements 324 Emigration to Immigration 359
Labor and Environmental
Standards 325 The Demographic Challenge of
Investor-State Relations 327 the Future 360
Jobs and Trade Agreements 328 Summary 362 • Vocabulary 363 •
CASE STUDY: The African Growth Study Questions 363
and Opportunity Act 330
Summary 331 • Vocabulary 332 • Chapter 15 Trade and Policy Reform
Study Questions 333 in Latin America 365
Introduction: Defining a “Latin
Chapter 14 The European Union: American” Economy 365
Many Markets Into One 334 Population, Income, and Economic
Introduction: The European Union 334 Growth 366

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 Contents xv

Import Substitution Industrialization 368 Fiscal Discipline and Business–

Origins and Goals of ISI 368 Government Relations 403
Criticisms of ISI 371 CASE STUDY: Doing Business in the
CASE STUDY: ISI in Mexico 372 Export Oriented Asian
Macroeconomic Instability and Economies 403
Economic Populism 374 Avoiding Rent Seeking 405
Populism in Latin America 375 CASE STUDY: Were East Asian
CASE STUDY: Economic Populism Economies Open? 407
in Peru, 1985–1990 376 The Role of Industrial Policies 409
The Debt Crisis of the 1980s 377 Targeting Specific Industries 409
Proximate Causes of the Debt Did Industrial Policies Work? 410
CASE STUDY: HCI in Korea 412
Crisis 377
Responses to the Debt Crisis 378 The Role of Manufactured Exports 413
The Connections between Growth
Neoliberal Policy Reform and the
and Exports 413
Washington Consensus 381
Is Export Promotion a Good Model
Stabilization Policies to Control
for Other Regions? 415
Inflation 381
CASE STUDY: Asian Trade Blocs 416
Structural Reform and Open Trade 383
CASE STUDY: Regional Trade Blocs Is There an Asian Model of Economic
in Latin America 384 Growth? 417
The Next Generation of Reforms 386 Summary 419 • Vocabulary 420 •
CASE STUDY: The Chilean Model 387 Study Questions 420
Summary 389 • Vocabulary 390 •
Study Questions 390 Chapter 17 China and India in the
World Economy 421
Chapter 16 Export-Oriented Growth Introduction: New Challenges 421
in East Asia 392 Demographic and Economic
Introduction: High-Growth Asian Characteristics 422
Economies 392 Economic Reform in China and
Population, Income, and Economic India 426
Growth 394 The Reform Process in China 427
A Note on Hong Kong 396 Indian Economic Reforms 428
General Characteristics of Growth 396 Shifting Comparative Advantages 429
CASE STUDY: Why Did the USSR
Shared Growth 396
Rapid Accumulation of Physical Collapse and China Succeed? 431
and Human Capital 397 China and India in the World Economy 432
Rapid Growth of Manufactured Chinese and Indian Trade
Exports 398 Patterns 433
Stable Macroeconomic Tariffs and Protection 434
Environments 399 Current Account Balances 435
The Institutional Environment 400 Looking Forward 437
CASE STUDY: Worldwide Four Issues 439
Governance Indicators 401 Services 439

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 xvi Contents

Manufacturing 440 Summary 444 • Vocabulary 445 •

Resources 441 Study Questions 445
Multilateral Institutions 441
Unresolved Issues 442 Glossary   447
The Choices Ahead 443 Index   459

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 Preface

International Economics is designed for a one-semester course covering both the micro
and macro components of international economics. The Seventh Edition continues the
approach of the first six editions by offering a principles-level introduction to the core
theories, together with policy analysis and the institutional and historical contexts of
international economic relations. My goal is to make economic reasoning about the
international economy accessible to a diverse group of students, including both eco-
nomics majors and nonmajors. My intention is to present the consensus of economic
opinion, when one exists, and to describe the differences when one does not. In general,
however, economists are more often in agreement than not.

New to the Seventh Edition

This Seventh Edition of International Economics preserves the organization and cov-
erage of the Sixth Edition and adds a number of updates and enhancements. New to
this edition:
■■ All tables and graphs have been updated.
■■ New case studies are added in Chapter 2 on the Asian Infrastructure and Invest-
ment Bank; Chapter 5 on industrial policies targeting clean energy technology;
and Chapter 16 on the Worldwide Governance Indicators.
■■ Chapter 9 on the balance of payments has incorporated the accounting revi-
sions of the IMF and the implementation of the revisions by the U.S. Bureau of
Economic Analysis. The changes recommended by the IMF are mostly termi-
nology, but also in the presentation of debits and credits. Chapter 9 also adds a
new appendix on the terminology of numbers: billions, thousands of millions,
milliards, and trillions.
■■ The discussion of financial crises in Chapter 12 is presented in terms of vulner-
abilities and triggers, following the terminology used by former Fed Chairman
Ben Bernanke, among others.
■■ Chapter 16 has dropped the World Bank’s now-dated terminology and focus on
the High Performance Asian Economies in favor of a more empirically deter-
mined set of high growth, export oriented East Asian economies.
■■ Chapter 17 is focused on India and China, exclusively.

xvii

A01_GERB2096_07_SE_FM.indd 17 10/7/16 7:19 PM

 xviii Preface

■■ The discussion of trade and jobs in Chapters 4, 13, and 17 is more nuanced
and reflects the growing challenge to the consensus that trade is not the
cause of manufacturing’s decline in high-income countries.

Hallmarks of International Economics

Several features of International Economics distinguish it from the many excellent
texts in the field:
■■ First, the approach is broader than the theoretical apparatus used by
­economists. Economic theory is covered and its mastery is essential,
but most readers grasp theory more completely when it is presented along
with real-world applications. To this end, I have supplemented economic
theory with case studies and other content ranging from the role of eco-
nomic institutions and the analysis of international economic policies to
the recent history of the world economy and the challenges facing differ-
ent geographical regions as they become more economically integrated
internationally .
■■ Second, the objective of covering both the micro and macro sides in a one-
semester course necessitates paring back the coverage of theory in order to
focus on the central concepts. As all instructors are aware, many theoretical
topics are of secondary or tertiary importance, which can pose a problem
for students who may lack the needed breadth and depth of understanding
to rank topics by their relative importance.
■■ Third, International Economics provides richer historical and institutional
detail than most other texts. This material illuminates the relationships
between economic theory and policy, and between economics and the
other social sciences.
■■ Fourth, I have organized Part 4 of the book into five chapters, each focused
on a geographic area as follows: North America with emphasis on the
United States, the European Union, Latin America, East Asia, and India
and China. These chapters offer students the chance to broaden their under-
standing of world trends and to observe the intellectual power of economic
theory in practice.

Flexibility of Organization
A text requires a fixed topical sequence because it must order the chapters one
after another. This is a potential problem for some instructors, as there is a wide
variety of preferences for the order in which topics are taught. The Seventh Edi-
tion, like the previous editions, strives for flexibility in allowing instructors to find
their own preferred sequence.

A01_GERB2096_07_SE_FM.indd 18 10/7/16 7:19 PM

Exploring the Variety of Random
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my answer. “Yes,” I replied to the encouraging query, “provided it is
something a gentleman can do, and I am well paid for it. But I will
conduct no negotiations in this way. I must see the people I am doing
business with.”
After dinner I retired to the same out-of-the-way corner of the garden
in which I had been found the night before, on the side farthest away
from the hotel and the music, to await developments. It probably was
not long, but it seemed hours, before the same three women came
up the short flight of steps running down to the street. The one who
was doing duty as a letter carrier, and who bore the imaginative
name of Ialla, was the last to appear. On reaching the level of the
garden her eyes roamed quickly around until they turned toward
where I was sitting. Seeing me, she drew her veil across her face, as
though she resented being classed with the unregenerate fellahin,
and wished to show more discrimination in her love affairs than they
could boast, and accompanied her companions in their ostensible
bargaining tour among the guests. To one who paid them even
casual attention they must have appeared as timid traders, so
lacking were they in the customary insistence, and it was with small
profits and no great loss of time that they found their way around to
me. As on the night before, it was left to Ialla to barter with me. I
again took both of her hands in mine, to examine her jewelry, of
which she wore a wealth that, like her looks, belied her dress, and as
I did so I slipped into one of them the tightly folded note which I had
been gripping for an hour or more. Her jewels were much richer than
those she had worn the previous evening and as I studied their
barbaric beauty I softly pressed her childish hands, as the only
means of conveying something of the impression she had made on
me, for I did not know the extent to which the other women were in
our secret or could be trusted. Her only response was one quick
glance, which I interpreted as a mixture of pleasure, surprise, and
interrogation; the one distinctly pleasant thing about it was that it
contained nothing of indignation or hostility. Save for that electric
flash her wonderful eyes looked modestly downward and her whole
attitude was one of perfect propriety, which more than ever
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she drew her hands away, hurriedly but gently, and with an impatient
gesture, as though she had made up her mind that I had no idea of
making a purchase, led her companions out of the garden.
There was no sign of either Ialla or her two friends the next evening,
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received a call from my old friend, who undoubtedly had
recommended me and vouched for me to the people who had
opened up the exceedingly interesting correspondence. It was
apparently a casual visit but its purpose was revealed when, in the
course of a general conversation regarding the country and its ways,
along which he had cleverly piloted me, he said: “These Egyptians
are a remarkable people. I have lived among them long enough to
know them and to admire, particularly, their sublime religious faith
and their exalted sense of honor. With their enemies, and with the
travellers on whom they prey, they are tricky and evasive to the last
degree, but in their dealings with people whom they know and trust
they are the most honorable men in the world. I don’t know whether
you expect to have any dealings with them, but if you do, you can
trust them absolutely.”
With that opening I was on the point of speaking to him about the
note I had received and answered, but before I could say a word he
had started off on another subject, leaving me to understand that he
knew all about the matter but did not wish to talk of it, and that he
had taken that method, learned from the diplomats, of endorsing the
people with whom he had put me in communication. We gossiped on
for some time, but though each knew what was uppermost in the
other’s mind neither of us spoke of it, nor was the subject even
indirectly referred to again.
This conversation indicated that the veiled proceedings were nearing
the point of a personal interview with some one who knew something
about the scheme, and when I took my seat in the garden that
evening I was impatient for further unfoldings. Not knowing what
might happen, and despite the afternoon’s guarantee of good faith
from a man I had every reason to trust, I took the precaution to arm
myself with two Tranter revolvers. I had not been waiting long when
Ialla and her two companions appeared and came straight toward
me, but without any sign of recognition. As she passed close beside
me, walking slowly, Ialla whispered, almost in my ear: “Follow me at
ten o’clock.”
It was then about nine-thirty. The inharmonious trio moved on into
the throng of guests and, as the time passed, gradually worked their
way around toward the stairway leading down to the street. A few
minutes before ten I descended into the street to wait for them, so it
could not be seen from the hotel that I was following them. Promptly
on the hour Ialla and her attendants came down the steps and set off
toward Old Cairo, which, however much it may have been spoiled
since, was then just the same as when Haroun-al-Raschid used to
take his midnight rambles. At the corner of the hotel two men
dressed as servants stepped out of a shadow and fell in close
behind them, apparently to prevent me from engaging them in
conversation, which, but for this barrier, I assuredly would have
done. With all amorous advances thus discouraged I remained far
enough behind so that it would not appear that I was one of the
party. They led me almost the full length of the Mooshka, the main
street of the old town and the only one wide enough to permit the
passing of two carriages; turned into one of the narrow side streets,
then into another and another until they stopped at last in front of a
door at the side of one of the little shops. When I was within perhaps
fifty feet of them Ialla entered the door, after looking back at me,
while her four companions walked rapidly on down the street. I
pushed open the door, which was immediately closed by a servant
who dropped a bar across it, and found Ialla waiting for me in a dimly
lighted hallway. She led me nearly to the end of the long hall, opened
a door and motioned to me to enter and closed the door from the
outside. I found myself in a large room, which, after my eyes had
become accustomed to the half light, I saw was magnificently
furnished. A fine-looking old Arab, with gray hair and beard, was
seated on an ottoman, smoking a bubble pipe. His bearing was
majestic and for the purpose of easy identification he will be known
here as Regal, though that was not his name.
“I am glad to see you, Pasha Boynton,” was his greeting, in a deep,
strong voice. He proved himself a man of action, and advanced
himself greatly in my esteem by giving no time to idle chatter. “We
know you well,” he said, “through trustworthy information, as a
soldier and a sailor, and we believe you are peculiarly well equipped
for the work we wish you to undertake. It is a sea-going expedition,
involving danger of disaster on one hand and the cause of liberty
and a substantial reward on the other. Are you willing to attempt it?”
“If you are open to reasonable terms and I am given full command of
the expedition, I will gladly undertake it,” I replied. “If it furnishes real
adventure I will be quite willing to accept that in part payment for my
services.”
“Then we should be able to agree without difficulty,” he answered
with a grim smile. “But,” he added, as his keen face took on a stern
expression and his eyes looked through mine into my brain, “whether
or not we do reach an agreement, we can rely on you to keep our
secret and to drop no hint or word through which it might be
revealed?”
“Absolutely,” I replied, and my gaze was as steady as his. He studied
me intently for a full minute and then said decisively, in the Arabic
fashion: “It is good.”
Without further ceremony he let me into the whole plot. At the bottom
of it was the old cry of “Egypt for the Egyptians,” which is not yet
dead and probably will not die for centuries, if ever. It was Arabi
Pasha who made the last desperate fight under this slogan and it
was his release from exile that was sought by the plotters, in order
that he might renew the war for native liberty. As a military genius
Arabi ranked almost with the great Ibrahim Pasha, who died a few
years after Arabi was born, and he was fanatical in his love of
country. From a Colonel in the army he became Under Secretary of
War and then Minister of War, in which position he was practically
the Dictator of Egypt. With the aid of a secret society which he
organized among the native officers of the army, and the carefully
concealed support of the Sultan, who had protested vainly against
the assumption of authority by the British and French over this part
of Turkish territory, he planned and executed a revolt through which
it was hoped to restore native control of Egypt. The French, more
sentimental than selfish, and reluctant to take extreme measures,
withdrew at the last moment, leaving it to the British to prosecute the
war, which they did with characteristic vigor. The bombardment of
Alexandria, on July 11 and 12, 1882, and the rout of his army at Tel-
el-Kebir two months later, dissipated Arabi’s dream and, so far as
surface indications were concerned, established British rule in Egypt,
exclusively and permanently. The movement which Arabi had
fostered apparently collapsed with that battle, and he was exiled to
Ceylon for life.
Briefly and bitterly this bit of history was reviewed by the old Arab.
Then he became more animated. He said the loyal Egyptians had
been planning a new movement against the British, with great
secrecy, for a long time, and that the natives and a large part of the
army were ready to rise in revolt whenever the signal was given. The
butchery of the gallant “Chinese” Gordon at Khartoum—a stain on
England’s fame which never can be blotted out—had checked the
British advance in the Soudan and to some extent paralyzed the
officials who, from the safe haven of the War Office in London, were
drawing up plans of conquest, and the conspirators believed the time
had come for what they were confident would prove a successful
and final blow for freedom. But, to make this ardently desired result
more certain, they needed the inspiring leadership of Arabi Pasha, in
whose talent for conflict they still had great faith, which doubtless
was intensified by his enforced absence. Furthermore, Regal
explained, the superstitious natives would hail his unexpected return
from exile as a sign that they could not be defeated and would fight
more desperately and determinedly than before. Through spies it
had been learned that Arabi was confined at a point near the coast,
only a short distance from Colombo, the capital of Ceylon. He was
allowed considerable freedom, within certain prescribed limits, and
was in the custody of only a small guard. His escape was regarded
as impossible and the idea that an attempt might be made to rescue
him seemingly had not entered the minds of those responsible for his
safe-keeping.
Yet that was precisely what I was asked to accomplish. After Regal
had stated the conditions of Arabi’s captivity he dramatically
declared, with flashing eyes: “The fires which the British foolishly
thought they had stamped out, were not, and could never be,
extinguished. They have been smouldering ever since and are now
ready to burst into a flame that will consume everything before it. We
need only the presence of the great Arabi. You can bring him to us.
With a ship, whose true mission is concealed by methods of which
we know you to be a master, you can sail to a point close to his
place of confinement. As soon as it is dark and quiet forty or fifty of
our brave men, who will accompany you, will be landed. They will
steal upon his guards and silence them and return with the General
to your ship. There will be none left to give the alarm and by the time
it is discovered that he has been snatched away from their cursed
hands you will be far out of sight, and with your knowledge of the
ways of those who sail the sea it should not be difficult for you to
avoid capture. You will land Arabi at some point to be decided on,
from which he can make his way to Cairo. With his coming our
banners will be unfurled and Egypt will be restored to the Egyptians.
It is a mission in the cause of freedom and humanity. Are you willing
to undertake it?”
Long before he reached it, I saw his objective point, and ran the
whole scheme over in my mind while he was laying down its
principles. It did not strike me as being at all foolhardy. As I have
said before, it is the so-called impossibilities which, when they are
not really impossible, as few of them are, can be most easily
accomplished, for the reason that they are not guarded against.
Under the conditions described, the rescue of Arabi would be
comparatively a simple matter. The chief danger would come from
the British warships which would swarm the seas as soon as his
disappearance was discovered, for it would be a natural conclusion
that he was on some vessel on his way back to Egypt. This danger
appealed to me, for it augured well for adventure. It would be a game
of hide-and-seek, such as I intensely enjoyed, with my wits pitted
against those of the British Navy, and with my varied experiences in
deep-sea deception, I did not consider that the odds against me
would be overwhelming. Therefore I promptly assured the old patriot,
whose anxiety and excitement were shown in his blazing eyes, that I
would cheerfully assume responsibility for Arabi’s rescue and his
safe delivery at almost any point that might be designated.
“It is good,” he replied, slowly and impressively. “Egypt will be free.”
Profoundly wishing that the noble little “Leckwith” was at my service
instead of at the bottom of the sea, I added that I had no ship and it
would be necessary to purchase one, as it would be impracticable to
charter a vessel for such a purpose. This meant that the expedition
would require some financing, in addition to the charge for my
services. With a gesture which indicated that everything was settled
in his mind and that it was only necessary for me to name my terms
to have them agreed to, Regal said he anticipated no difficulty on
that point and suggested that I return the next afternoon or evening
to meet his associates, who comprised the inner circle of the
revolutionary party. I told him I would be glad to come at any hour
but I doubted that I could find my way through the labyrinth of narrow
streets.
“How has the person who guided you here conducted herself?” he
asked.
“Irreproachably.”
“She will signal you to-morrow afternoon or evening. Follow her.”
With that he arose, terminating the interview; we solemnly shook
hands and he escorted me to the door. I was wondering how I should
find the way back to my hotel when I descried Ialla and her four
shadows waiting for me a short distance down the street. Without a
word they showed me the course until I made out the hotel, when
they disappeared down a side street.
I was lounging in the garden early the next afternoon, for there was
no telling when the summons might come and I would take no
chance of missing it. It was about four o’clock, at which hour all Cairo
was on parade and the crowd was thickest around the hotel, that
Ialla and her faithful female guards entered the lively scene. Her face
was almost entirely hidden by her veil but there was no mistaking her
eyes. They caught mine and a quick little beckoning motion, which
no one else would have noticed, told me to follow her. She soon left,
walking slowly, and I took up the trail, restraining myself with an effort
from approaching her more closely than wisdom dictated. Avoiding
the crowded Mooshka they led me, by a more circuitous route, back
to the house where I had been so agreeably entertained the night
before, and which was entered in the same way. Regal was waiting
for me and with him were five of his countrymen, to whom I was
introduced en bloc. They were dignified and reserved but sharp-eyed
and vigorous and they looked like fighters of the first water. They
were much younger than Regal and evidently, from the deference
shown him, he was the chief conspirator.
“These,” he said, with a courtly wave of his hand toward the others,
“are the relatives and companions-in-arms of Arabi Pasha and the
men who, with me, are directing our operations. They are perfectly
responsible, as you will see, and in every way entitled to your
confidence, as you are worthy of theirs.”
With this formal assurance we sat down to a detailed discussion of
the project. They told me of their plans, as Regal had previously
explained them in a general way, and professed confidence that with
Arabi in personal command of their forces, and with the active
coöperation of the Soudanese, which was assured, they would drive
the hated British out of Egypt, and keep them out. Their knowledge
of the surroundings at Arabi’s place of confinement and their plan for
overpowering his guards and securing his release, which was
complete to the slaughter of the last man, showed an intimate
acquaintance with conditions that surprised me. From all they told
me on this point I gained the idea that they were working in harmony
with their brother Mohammedans in India, and that the latter were
planning a similar uprising when the conditions were judged to be
opportune. Developments since then have strengthened this belief
into a conviction. It is never wise to predict, but when England some
day becomes involved in a war with a first-class power, like Germany
for instance, which will tax her fighting forces to the limit, there need
be no surprise if the natives of Egypt and India rise simultaneously
and become their own masters.
It was urged by them and agreed that I should take no part in the
actual rescue of Arabi but remain on the ship, to guard against any
surprise by water and to be ready to steam westward as soon as the
party returned. I was to stand in close to the shore just after dark,
with all lights doused, and it was thought that Arabi would be safe on
board long enough before sunrise so that we could be well clear of
the land by daylight. The point at which Arabi was to be landed
caused considerable discussion. As the British were certain to
promptly patrol the Red Sea, with all of the warships that could be
hurried into it, and closely guard the Strait of Bab-el-Mandeb, it was
tentatively decided that the safest and wisest course would be to put
him ashore near Jibuti, on friendly French soil, from which point he
could pick a pathway through Abyssinia and down the Nile, with little
danger of detection and with the advantage of being able to arouse
the enthusiasm of the Soudanese and other tribes through which he
passed. I was in favor of running the gantlet of the Strait and landing
him two or three hundred miles south of the Gulf of Suez, which
would expedite the revolt and also make things more exciting, but
the others feared this would expose him too much to the danger of
recapture. They were for the surest way and said that more reckless
methods could wait until he was at the head of his troops. This
conclusion as to the landing place, however, was not final. It was
understood that I would receive definite instructions when I put in at
Saukin, on the way out, to take on the fifty proud and trusted warriors
who were to effect the release of their revered leader.
The fact that consideration of terms was the last question brought up
was a delicate compliment to my supposed fairness which I
appreciated. Instead of asking them for fifty thousand pounds, as I
had intended to, I stipulated only forty thousand, one-half of which
was to be advanced to me for the purchase of a suitable ship. The
ship was, of course, to be turned over to them at the conclusion of
the expedition. I was to pay all expenses and collect the remaining
twenty thousand pounds after Arabi had been landed. If they had
fixed the terms themselves they could not have agreed to them more
readily, and I was asked to return at ten o’clock the next evening for
the initial payment.
Our negotiations thus rapidly concluded, I was invited to remain to
dinner, which is the crowning honor of Egyptian confidence and
hospitality. I needed no urging and never have I enjoyed a meal
more. The table-talk was general, but running all through it was the
love of freedom and the plan through which they hoped to realize
their passion. Their interest in American affairs was only that called
for by courtesy, but they made me tell many stories of our wars with
England, from which they derived much satisfaction.
“We are as much entitled to our freedom as you are,” declared one
of my hosts, whose green turban indicated that he could trace his
ancestry back to Mahomet, “and we will win ours in the end, just as
your people won theirs. We may be a strange people,” he added,
reflectively, “but we are not so bad as we have been painted. The
howadji [strangers] condemn our religion without understanding it
and preach to us another, which, so far as we can observe from its
practices, falls far short of our own. Mohammedanism needs no
defence from me, but I will tell you just one thing about it. If you were
now to murder my brother I could not lay hands on you or harm you,
for you have eaten of my salt, but not even Mahomet could make me
cease to hate you in my heart. Does the Christian religion, of which
the British are so proud, teach you that?”
I confessed that it didn’t, so far as I had information or belief, and
made my sincere salaams to his faith. If I am ever to become
afflicted with any religious beliefs, I hope they will be those taught by
Mahomet.
When I finally started back to my hotel Ialla and her attendants were
waiting for me in the alley, for it was not wide enough to be called a
street. They started on ahead, but we had gone only a few short
blocks when her four companions walked briskly away and she
waited for me, in a shadow so deep that I at first thought she had
entered one of the queer houses and my spirits fell, to be revivified a
moment later when I almost ran into her.
“How did your business turn out?” she inquired anxiously, as I bowed
low before her. Her voice, which I had been longing to hear, was soft
and clear, as well became her, and her radiant beauty shone forth
through the darkness.
“Thanks to your cleverness,” I replied, “it has turned out well.”
“Then you are going to rescue my uncle,” she exclaimed delightedly.
Her sparkling eyes flamed with excitement and, as if to seal the
compact, she extended her hand, which I first pressed and then
kissed. Then I slipped it through my arm and started to walk out of
the shadow into the moonlight, and she accompanied me without
protest.
She had exchanged her cotton robe for one of silk, which was much
more fitting, and as I looked down on her I thought her the most
beautiful woman I had ever seen. If I had held the same opinion as
to others of her sex I was not reminded of it then, and there was no
manner of doubt that I was deeply in love with her. We walked long
and talked much, and some of it was interesting. She told me,
though it did not need the telling, that she was a lady and that she
had risked her reputation and exposed herself to coarsest insult by
appearing in public unveiled and dressed as a servant, out of love for
her uncle and devotion to his cause. To prevent suspicion it had
been determined that communication should be opened with me
through a woman, and she had volunteered for the service. She said
she had seen me at the Khedive’s reception, which she had
witnessed through the fretwork from the apartments of the Khedivah
—from which it appeared that I had been under consideration by the
revolutionary leaders for several weeks before I was approached—
and so she knew the man to whom the introductory note was to be
delivered. The two women servants, who could not be trusted with
such confidential correspondence, accompanied her for the double
purpose of protecting her as much as possible and carrying out the
peddling pretence. This explained why she had kept in the
background and covered her face with her scraggly veil most of the
time. On her first visit, she said, she had fully exposed her face so
that I might see she was not of the class of her companions and be
the more willing to hold commercial converse with her; in her heart
she knew her beauty would attract me, wherein she displayed an
abundantly justifiable confidence in her charms, but she expressed it
without the words or style of vanity. Except for that brief period when
she was altogether unveiled she said she really did not have great
fear of being discovered, for it was unlikely that any of her friends
would be around the hotel at the hours when she went there, and,
even if they did see her, it was improbable that they would recognize
her in fellahin attire. As a matter of fact, she confessed, as we
became better acquainted, she had entered into the plot not only
through love for her distinguished uncle, to whom she was devoted,
but from a liking for doing things that were out of the ordinary.
It was this same spirit which induced her, on the night of my first
opportunity to tell her of her beauty and my fervid love for her, to
bribe her servants to disappear for a time. By the light of the
Egyptian moon, which would inspire even a lout of a lover, I told her,
in words that burned, of the passion she had implanted within me by
the first glance of her wonderful eyes, and I was encouraged by the
fact that she seemed more sympathetic than otherwise. We walked
for hours through deserted streets that were far from lonely until at
last we came to a corner near the hotel where her attendants were
waiting for her, patiently, I presumed, from their natures, but whether
patiently or not was of no concern to me.
The next night I found my way alone to Regal’s abode and received
the first payment of twenty thousand pounds, in Paris exchange.
There was a final conference, at which all of the details were gone
over again as a precaution against any misunderstanding, and I took
my departure with many good wishes. Ialla and her two women
attendants were waiting for me, as had been arranged, and my love-
making was resumed where I had left off on the preceding night. Ialla
was more responsive than before, but when I urged her to go with
me to France or marry me at once in Cairo she would not listen.
Finally she said: “After you have rescued my uncle I will go with you
anywhere, but not until then will I think of marriage.”
Nothing could move her from that decision. I arranged to meet her
the next night and the one following, and several others, which she
accomplished by the popular method of bribing her attendants, but,
though it was a joy to her to be told of my love there was no way by
which she could be induced to yield to it until her uncle was free.
Finally she regretfully insisted that I must leave, for her relatives, she
said, were becoming seriously disturbed over the fact that I had
remained so long in Cairo, instead of going about the important
business at hand. In my infatuation I had forgotten discretion and my
promise to conduct the expedition with all possible speed. Even
when this was brought home to me it required all of my will power to
say au revoir to the beauteous Ialla, though I expected to see her
soon again and hold her to her promise.
I went to Marseilles and called on a huissier d’marine, or ship broker,
named Oliviera, to whom I had been recommended. After looking
over several ships that were for sale I bought “L’Hirondelle” (The
Swallow), a coasting steamer of eight hundred tons that had been
running between Marseilles and Citta Vecchia, the port of Rome.
She was old but in good condition and could do seventeen knots or
better. I took command of the ship and my first and second officers
were Leigh and Wilson, who came down from London in response to
a telegram, bringing with them half a dozen men whom I knew could
be trusted. The crew was filled out with Frenchmen and we headed
for Suakin, far down on the Egyptian side of the Red Sea. There I
was to receive final instructions and pick up the Arabs who were to
do the manual labor, and whatever assassination was necessary, in
connection with Arabi’s restoration to his countrymen. As soon as we
were in the Red Sea I stripped off the ship’s French name,
rechristened her the “Adventure,” hoisted the British flag over her,
and gave her a forged set of papers in keeping with her name and
nationality.
At Suakin one of the great surprises of my life awaited me. We had
scarcely tied up when the man from whom I was to receive the
warriors came aboard with a letter from Regal directing me to turn
the ship over to him and discharge the crew. The agent could not
understand the change of plan any more than I could, and I could not
even guess as to the cause, but he was there to obey orders and
there was nothing else for me to do. I could not make any kind of a
formal protest without revealing something concerning my mission,
which I would not do, and, besides that, the ship did not belong to
me. Feeling sure there would be a satisfactory explanation waiting
for me at Cairo I returned there, after paying off the crew and
sending them back to Marseilles and London in charge of Leigh and
Wilson.
I was still more mystified when, on reaching Cairo, I was unable to
find Regal, Ialla, or any one else connected with the undertaking, nor
could I get the slightest trace of them. I located the house in which I
had been so charmingly admitted into the conspiracy, but the people
living there were strangers, so far as I was permitted to observe or
could ascertain, and they insisted they knew nothing at all
concerning the previous occupants. If I could have searched the
house I might have found out differently, but that was out of the
question. Here was Egyptian mystery beyond what I had bargained
for. It was as though I had been roughly awakened from a delightfully
realistic dream. The only theory on which I could explain the puzzle
was that the government had in some way learned of the plot, in
consequence of which every one identified with it had disappeared,
leaving it to me to take the hint and do likewise. In the hope of
seeing Ialla again and determined to secure some definite clue as to
just what had happened in my absence, I waited around for two
weeks or more, until I encountered the old friend who, I knew, was
responsible for my connection with the conspiracy. I did not
dissemble, as I had before, but took him to my room, told him the
riddle, and asked him the answer. I did not expect him to admit
anything and was not disappointed. What he said, in substance, was
this: “Of course I know nothing about the plot of which you have told
me. If what you say is true I should say that you have been making
something of a fool of yourself over this Ialla and that you have only
yourself to blame for the abrupt ending which seems to have been
reached. You are very shrewd and far-sighted and I will admit that
ordinarily you are not much moved by sentiment, but this black-eyed
beauty seems to have carried you off your feet. These women are
the greatest flirts in the world. There is nothing they enjoy so much
as clandestine meetings at which they can listen to passionate
protestations of love, and when these come from a foreigner their
cup of happiness is full. You thought Ialla was in love with you, but
she was only having a good time with you, and she has taken a lot of
pride in telling her friends about your meetings at their afternoon
gatherings in the old cemetery for the exchange of gossip. She had
no idea of marrying you, an unbeliever, you may be sure of that. It
may be that she thought she was stimulating you to deeds of
heroism in the rescue of her uncle, but, if she considered that at all, it
was a secondary matter. The men you were dealing with have the
contempt of their race for all women. They cannot understand how
any man can become so enamoured of a woman, no matter how
beautiful, as to let it interfere with his business. When a man who, for
the time being, has the leading role in a prospective revolution, so far
forgets himself as to waste a week of valuable time in running after a
flirtatious female they are quite likely to conclude that he is too
foolish and reckless to be trusted with such an important matter.
They would argue that no man who could be relied on to carry out
their plan would display such lack of judgment. It is possible that
there may be some other reason for the situation in which you find
yourself, but I doubt it. The wisest course for you is to tell me how
you can be reached, and leave Cairo, for you can gain nothing by
staying here. It is known to many persons that I know you and if any
one should want to get in communication with you, I will be able to
tell him how to do it.”
Possessing all the pride of a full-blooded man, I resented the calm
assertion that I had been ensnared by a flirt, and a somewhat
acrimonious argument followed, but, in looking back at it now, I am
willing to admit that probably my friend was right about it. Perhaps
Ialla was not, after all, the perfect woman that, under the magic spell
of her marvellous beauty, I imagined her to be, and possibly if I had
not surrendered so suddenly to her charms Arabi Pasha might have
been freed and Egypt might now be an Empire. Whether or not that
is true, I have no regrets on the subject, except that I never saw Ialla
again. My moonlight meetings with her were, at least, a diversion,
and they gave me great enjoyment while they lasted.
Though it went against the grain I was compelled to admit that my
friend’s advice was the best I could get, and I reluctantly followed it.
Feeling that for once my destiny had played it a bit low down on me I
crossed the Mediterranean and took a French liner for New York. I
had spent four months and much money in studying the Sphinx, but I
did not count them as lost. Ialla’s loveliness was in my mind for a
long time and while it remained I cherished the hope that I would be
recalled to carry out the plan for the rescue of her uncle, but the
summons never came. Eleven years later Arabi was pardoned and
returned to Egypt, but his influence among his own people was
gone; the fact that he had accepted a pardon implied, to their astute
minds, a secret agreement with their enemies and caused him to be
regarded as a tool of the British. But, as very recent events have
demonstrated, the fires of freedom are still burning, and now and
again signal smoke is seen rising over India.
 CHAPTER XIV
RAPID-FIRE REVOLTS

THE friendliness of Fate, in throwing me in the way of adventures

which were beyond my discernment, was never more plainly
evidenced than on my return to New York from Australia and Egypt
in 1890. On the trip across the Atlantic my mind had wandered away
from the West Indies and I experienced an increasing desire to
return to South America, but one of the first things I heard on my
arrival was that my old friend Guzman Blanco had finally been shorn
of his supreme power in Venezuela only a few months before. He
had been betrayed by his friends, after the established fashion of
that captivating country, and Dr. Anduesa Palacio, one of his
enemies of years, had been made President with the approval and
assistance of Dr. Rojas Paul, the dummy whom Guzman had left as
titular head of the government while he was revelling in Paris, his
foreign capital. This discouraged me for a time in my half-formed
plan to return to my Southern stamping ground, and as I had plenty
of money and was not averse to a rest, I concluded to wait around,
Micawber like, for something to turn up. But it was not long until a
silent voice began calling me to South America; softly, at first, and
then so loudly that it came as a command. I had heard the same sort
of an order before, and only very recently, and was not disposed to
disregard it. I felt sure it would not lead me into disappointment twice
in succession.
Without knowing where or how the cruise would end, but confident it
would lead to trouble—though I did not imagine how much of it there
really would be or how unpleasant it would prove—I bought the
“Alice Ada,” a brigantine of three hundred tons, laid her on with Thos.
Norton & Sons, and got a general cargo for Rosario, Brazil, on the
River Parava. From Rosario I went one hundred miles up the river to
St. Stephens and took on a cargo of wheat for Rio Janiero. As soon
as I had looked around a little in Rio, while the cargo was being
unloaded, I understood why I had gone there, for my expectant eye
distinguished signs of a nice little revolution which was just being
shaped up. These indications, though somewhat vague to even an
experienced new arrival, were so encouraging in their promise of
exciting events that I sold my ship and took quarters at the Hotel
Freitas to watch developments. I had not long to wait before the
young republic celebrated its first revolution, but it was accomplished
in such a disgracefully quiet way, and in such marked contrast with
that sort of proceeding in Venezuela, and in Central America and the
West Indies, that I was thoroughly disgusted with the country and
was tempted to move on again into new fields. A land in which the
government is changed by the force of public sentiment alone, and
without the booming of cannon and the bursting of bombs, has no
charm for me.
When the last Emperor of Brazil, Dom Pedro II, was dragged out of
bed at night and deported without the firing of a shot, in the
“Peaceful Revolution” of November 15, 1889, Deodoro da Fonseca
was made President by the lovers of liberty and equality, which
purely imaginary conditions of life never will be found in any country.
Before his weakness had become apparent he was made
Constitutional President and Floriano Peixotto was elected Vice-
President. Deodoro had neither the firmness nor the initiative that the
situation demanded. His policy was weak and vacillating and his
popularity waned rapidly. The revolution which was in the process of
formation when I arrived on the scene was, I discovered, being
quietly fomented by Floriano, the Vice-President. He soon had the
army at his back and, as the people were beginning to clamor for
him, it was an easy matter to gain the support of Admiral Mello, the
ranking officer of the Brazilian Navy, and Admiral Soldanha da
Gama, commandant of the naval academy. They brought matters to
a head on the morning of November 23, 1891. Mello took up a
position at the foot of the main street of Rio in the cruiser
“Riachuelo,” the finest ship in the navy, trained his guns on the
palace of Itumary, and sent word to Deodoro that he would open fire
on him in two hours if he did not abdicate in favor of Floriano.
Deodoro abdicated in two minutes, and dropped dead soon
afterward from heart disease, and Floriano was proclaimed
President.
Before he had time to get his new chair well warmed he had a row
with Mello, and as soon as I heard of it I foresaw another revolution,
which pleasing prospect prompted me to remain in Brazil, for I did
not believe it could possibly prove as uninteresting as those that had
preceded it. Mello regarded himself as the President-maker and
considered that he was rightfully entitled to be the power behind the
throne. However, Floriano was not at all constituted for the role of a
mere figurehead and he made it plain to Mello that while he might
make courteous suggestions and even give friendly advice, he could
not go an inch beyond that. Floriano was really a remarkable man.
He was perhaps one-half Indian and the rest corrupted Portuguese;
sixty years old, with clear, brown eyes and iron gray hair and
whiskers. A strong, fine character he was; perfectly fearless,
absolutely honest and devoted to his country, whose interests he
greatly advanced. He was proud of his Indian blood, which he made
a synonyme for courage and fairness, and often referred to it. He
was the best President I have ever known, not excepting even the
great Guzman.
Mello was a younger man and more of a Spaniard in his blood and
his characteristics. He had considerable bravery, of the kind that is
best displayed in the presence of a large audience, but he was
impetuous and at times foolish. He was abnormally ambitious and
believed in a rule or ruin policy. At that, he was more a man after my
own heart, for he stood for revolt and anarchy, while Floriano stood
for law and order. Soldanha da Gama, the third figure in the drama,
was a strange mixture of naval ability, cowardice, and theatrical
bravery.
When Floriano refused to be dictated to or even influenced in his
views as to what was best for Brazil, Mello proceeded to plot against
him with even more earnestness than he had displayed in the plans
to overthrow Deodoro. He worked chiefly among the naval officers,
the aristocrats, the adherents of Dom Pedro, and the Catholic clergy,
and in the end they all became his allies. He was unable to shake
the army, though he tried repeatedly to create dissatisfaction among
the troops, and the influence of the priests was minimized by the fact
that the people generally were blindly in love with the new scheme of
self-government, which sounded well and appealed strongly to their
sentimental natures, and were loyal to Floriano.
As Mello’s plot shaped up I began to suspect that his real purpose
was to restore Dom Pedro to the throne and make himself the power
behind it. Mello cared nothing for titles; it was his ambition to be the
dictator of Brazil, with power as absolute as that which Guzman
Blanco had exercised for many years in Venezuela. It was natural for
him to suppose that if he reëstablished the Empire under its old ruler,
Dom Pedro would be so grateful to him, and to him alone, that he
would be thoroughly subservient to his influence. Later events
confirmed me not only in the belief that this was what was in Mello’s
mind, but that he had an understanding with Dom Pedro and,
through him, with several European rulers, who were keenly anxious
to see the “divine right of kings” perpetuated in South America. Mello
considered that the dictator to an Emperor would have more power
than the dictator to a President, and he may have even dreamed that
he would some day take the throne himself and establish a new
dynasty. Dom Pedro had issued a protest against his deposition as
soon as he reached Europe, in which all the princes of Coburg
joined, and was conducting an active campaign for his restoration. It
is interesting to note, in passing, that there is still a pretender to the
throne of Brazil. When Dom Pedro died he left his lost crown to
Donna Isabella, wife of Count D’Eu, a Bourbon prince. She passed it
over to her eldest son, Peter, when he became of age, and only
recently he transferred all of his shadowy rights and prerogatives to
his younger brother, Louis, who now considers himself the rightful
ruler of Brazil. The Old World has a way of keeping up
pretenderships that is almost as ridiculous as some of the
revolutions of the New World.
It was amusing to watch the development of Mello’s rebellion, which
continued through all of 1892 and the greater part of the following
year. One would have thought that two friendly leaders were
planning rival surprise parties, in which there was to be nothing more
serious than the throwing of confetti. Floriano, surrounded by spies