"Gold to the extent of 5200 marks108, and as the amounts which are coined and shipped are nearly equal, there does not appear to be any clandestine extraction. But a considerable quantity is expended in bullion, in works of use or ornament. The silver extracted from the mines of Chili is estimated at 30,000 marks yearly109. Of this about 25,000 marks are coined annually, and the residue is employed in the fabrication of plate. Yet a considerably larger amount is shipped every year, arising from the coined silver, which is transmitted from Lima. The remittances of gold and silver from Chili to Spain passes usually through Buenos Ayres. The gold, being less bulky, is carried by land, by the monthly packets, in sums of two or three thousand ounces. The silver is sent by two ships every summer, which likewise carry a part of the gold. The remittances of gold amount annually to 656,000 dollars110, the silver to 244,000111; and the copper annually extracted from the mines of Chili is estimated at from eight to ten thousand quintals112. From these data it will not be difficult to form a general estimate of the value of yearly produce from Chili113."

The Archipelago of Chiloe, extends from Cape Capitanes to Quillan, from lat. 41° 50' to 44° S. long. 302° to 303° 25' E, from the meridian of Teneriffe115. On the north it is bounded by the continent, where the Juncos and Rancos116, two independent and unconverted nations, possess the country from thence to Valdivia: on the east by the Andes, which separate it from Patagonia; on the south by the archipelago of Guaitecas; and on the west by the Pacific Ocean. The islands of this archipelago amount to about eighty, and appear to have been produced by earthquakes, owing to the great number of volcanoes, with which that country formerly abounded. Every part of them exhibits the most unquestionable marks of the operation of volcanic fire. Several mountains in the great island of Chiloe, which gives name to the archipelago, are composed of basaltic columns, which have been certainly produced by volcanic fire, whatever may be alleged to the contrary. The inhabited part of this province, extends from Maullin to Huilad, comprising forty leagues from north to south, and eighteen or twenty from east to west, and comprises twenty-five islands. There are Isla Grande, Ancud, or Chiloe Proper; Achao, Lemui, Quegui, Chelin, Tanqui, Linlin, Llignua, Quenai, Meulin, Caguach, Alau, Apeau, Chaulinec, Vuta-Chauquis, Anigue, Chegniau, Caucague, Calbuco, Llaicha, Quenu, Tabon, Abtau, Chiduapi, and Kaur.-Chiloe Ancud, or Isla Grande, being the largest island as its name imports, is the most populous, and the seat of government. Its capital, Castro, which is the only city in the province, was founded in 1566 by Don Martin Ruiz de Gamboa, during the viceroyalty of Lope Garcia de Castro in Peru, and was honoured with the name of his family.

The inhabitants of these islands are descended from the continental aborigines of Chili, as is evident from their manners, appearance, and language; yet are they very different in character, being of a pacific and rather timid disposition. They accordingly made no opposition against the handful of Spaniards who were sent to subjugate them under Gamboa, though their population is said to have then exceeded seventy thousand. Neither have they ever attempted to shake off the yoke, except once at the beginning of last century, when a very unimportant insurrection was speedily quelled. The number of inhabitants at present amounts to upwards of eleven thousand, which are distributed into seventy-six districts, each of which is governed by a native ulmen. The greatest part of this population is subject to the Spanish commanders, and are obliged to give personal service fifty days in every year, pursuant to the feudal laws, which are rigorously enforced in this province, though they have been long abolished in the rest of the kingdom of Chili.

These islanders in general possess great quickness of capacity, and readily learn any thing that is taught them. They have an apt genius for all mechanical arts, and excel in carpentry, cabinet-making, turnery, and the like, and are very expert in the construction of wooden-houses, as indeed all the habitations and even the churches are of timber. They are likewise good manufacturers in linen and woollen, of which last mixed with the feathers of sea-birds they make very beautiful bed-coverings. They also manufacture ponchos or cloaks of various kinds, many of which are striped, or embroidered with coloured silk or worsted.

These islands abound in wood, of which they supply large quantities yearly. As it rains almost incessantly, the cultivated lands are commonly wet the whole year. Though they have abundance of cattle, these are not employed for ploughing the ground, which is tilled, or cultivated in the following singular manner. About three months before seed-time, their sheep are turned upon the lands intended for a crop, changing their situation every three or four nights, in the manner called folding in Europe, by which the land is sufficiently manured. The field is then strewed over with the seed corn, and a strong man scratches or slightly turns over the soil to cover the seed, by means of a rude implement composed of two crooked sticks of hard wood fastened together and made sharp, which he forces into the ground with his breast. Notwithstanding this very imperfect tillage, the subsequent crop of wheat generally yields ten or twelve for one. They likewise grow large quantities of barley, beans, peas, guinoa, which is a species of chenopodium used in making a pleasant species of drink, and the largest and best potatoes that are to be found in all Chili. Owing to the moisture of the climate, the grape never comes to sufficient maturity for making wine; but its want is supplied by various kinds of cyder, made from apples and other wild fruits which abound in the country.

Owing to their habitude of frequently going from one island to another, where the sea is far from being pacific, the Chilotans are all excellent sailors, and being active, docile, and industrious, they are very much employed in navigating the shipping of the South Sea. Their native barks or piraguas are formed of from three to five planks, sewed together, and caulked with a species of moss which grows on a particular shrub. There are vast numbers of these barks all through the archipelago, which they manage very dexterously both with sails and oars, and the natives often venture as far as Conception in these frail vessels. They are much addicted to fishing, and procure vast quantities and many kinds of excellent fish on the sea around their shores. Of these they dry large quantities, which they export to Chili and Peru, and the other countries on the Pacific Ocean. They likewise cure considerable quantities of testaceous fishes, such as conchs, clams, and piures, in the following manner. These shell fish are laid in a long trench, covered over with the large leaves of the panke tinctoria, over which a layer of stones is laid, on which a hot fire is kindled and kept up for several hours. The roasted fish are then taken out of the shells, strung upon lines, and hung up for some time in the smoke of wood fires. Cured in this manner they keep well for a considerable time, and are carried for sale to Cujo and other inland districts.