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Before the Nitrate Era: British Commission Houses and the Chilean Economy, 1851–80

Published online by Cambridge University Press:  05 February 2009

Extract

The years between the election of Manuel Montt as President of Chile in 1851 and the outbreak of the War of the Pacific in 1879 were years of considerable expansion in the Chilean economy despite occasional setbacks which were generally followed by renewed prosperity. Government activity assisted this growth: Montt's administration, in particular, passed laws and followed policies designed to help commerce and industry and to establish the infrastructure of a modern economy.1 However, the country's increased wealth came from greater production for export in the traditional economy, using largely traditional methods, rather than through technical innovations or the introduction of new industries. The export sector fuelled the republic's growth; not only did export receipts pay for imports, but they provided the guarantee for foreign loans, while the Government secured the bulk of its revenues from duties levied on exports and imports.

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Articles
Copyright
Copyright © Cambridge University Press 1979

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References

1 For Montt's Government, see Encina, Francisco A., Historia de Chile desde la prehistoria hasta 1891 (20 vols., Santiago, 1942–52) XIII, Chaps. 55–60;Google ScholarEdwards, Alberto, El Gobierno de don Manuel Montt (Santiago, 1932), Chaps. 2 and 6;Google ScholarJobet, Julio César, Ensayo crítico del desarrollo económico-social de Chile (Santiago, 1955), Chap. 1.Google Scholar

2 See Pederson, L. R., The Mining Industry of the Norte Chico, Chile (Evanston, 1966)Google Scholar and Bauer, Arnold, Chilean Rural Society from the Spanish Conquest to 1930 (Cambridge, 1975) for studies of the two sectors.Google Scholar

3 Necochea, H. Ramírez, Historia del Imperialismo en Chile (Santiago, 1960), p. 62Google Scholar, estimates British production at 20-30% of the country's capacity, which seems unlikely. He includes the Mexican & South American Co., which failed, and both Gibbs and the Cerro Blanco Co. which Gibbs controlled. Between 1868 and 1886, British-owned copper companies provided Gibbs with only about 5% of their consignments. London, Guildhall Library, Gibbs Papers, MS 11033A/4, Value of shipments, 31 Dec. 1886.

4 Bauer, , and McBride, G. M., Chile, Land and Society (New York, 1936Google Scholar) make clear the social importance of land-ownership; the former describes in detail sources of credit for agriculture.

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10 Parliamentary Papers, 1866, LXXIV, 408;Google ScholarAnuario estadistica de Chile 1875, p. 197;Google ScholarIbid 1884, p. 437.

11 London, Public Recard Office, Foreign Office Archives, Chile (F.O. 16). F.O. 16/101, Fras. Brown, C. (Valparaiso) to Charles Swinburne (Santiago), 2 June 1857. (Charges amounted to 8% on sales in bond: 5% commission, 2½% guarantee, and ½% port agency, and 9% duty paid – 1% store rent being added.)Google Scholar

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13 Ibid, Articles of Partnership, II Jan. 1851. After 1863 the firm was named Balfour, Williamson & Co. in Liverpool, and Williamson, Balfour & Co. in Chile.

14 The only exceptions known to me were two houses financed by Edwards, Agustín, Edward Logan & Co. (1858),Google Scholar and Sawers, Woodgate & Co. (1872).Google Scholar

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26 Huth Papers, MS. 10700/5, annexed to extension of Articles of Partnership from to April 1862.Google Scholar

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29 Ibid, Bart. G. Browne to Frederick Huth & Co., 16 Aug. 1853.

30 Ibid

31 Ibid

32 Ibid

33 Duncan Fox Papers, Old Letters 1854–59, Lynill, J. P. (Valparaiso) to Meyer (Manchester), 15 July 1857.Google Scholar

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35 Ibid, Lynill to Meyer, 15 May 1857.

36 Ibid, Lynill to Meyer, 31 Jan 1857. Before it was Ravenscroft Bros. & Co.

37 Ibid, Lynill to Meyer, 15 Sept. 1857.

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41 Ibid, 1867–1868, LXX, 987, 988, 990.

42 Anuario estadlstica de Chile 1881, pp. XVI, 200.Google Scholar

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48 Ibid, S. Williamson to C. McCulloch, 16 April 1877.

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58 Santiago, , Archivo Nacional de Chile, Notarial de Valparaiso, 108, No. 453, Agreement between T. Waitt (for Waters & Waitt) and G. Müller (for A. Hemenway & Co.), 6 Feb. 1856.Google Scholar

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60 Gibbs Papers, MS. 11471/2, A. G. & S. to W. G. & C., 35 Mar.–I April 1876.Google Scholar

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68 Chilian Times, 14 Oct. 1876.Google Scholar

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