Commerce.— In 1915 the value of Chile's i imports from the United States was 17,800, 611; in 1914, $13,627,618; and in 1913, 16,616, 618. In 1913 the last normal year be ore the war in Europe, the figures for Chile's foreign commerce were: Imports, $120,274,001, ex rts, $144,653,312; Great BritainBritainleading in bo ex . .its and imports, followed by Germany, s n'ted States and France. Chile's princip exports were : Nitrate of soda, 2,666,000 tons (metric tons of 2,204.6 lbs. in this item and each of the following) ; copper concentrates • ',106 tons; oats, 53,515 tons; wheat, 52 to , • "rate of lime, 42,011 tons; copper, 37, 12 tons; bran, 14,855 tons; iron ore, 14,100 tons; wool, 12,786 tons; beans, 10,840 tons; hides, 5,881 tons; wheat flour, 5,612 tons; whale oil, 3,109 tons; iodine, 437 tons. The 12 leading Chilean ports, whose rating is based upon the i value of their imports are, in the order of such rating: Valparaiso, Talcahuano, Antofagasta, Iquique, Resguardos, Valdivia, Punta Arenas, Taltal, Coronel, Tocopilla, Coquimbo and Cor reos. On the other hand, the 12 leading in exports take rank as follows: Iquique, Anto fagasta, Mejillones, Tocopilla, Taltal, Caleta Buena, Valparaiso, Coloso, Punta Arenas, Pisagua, Junin and Talcahuano. The imports during 1914, as classified by the Central Statis tical Office of Chile, were, with values in United States gold: Oils, varnishes, paints and coal, $18,478,181; textiles, $17,838,117; mineral prod ucts, $15,972,919; . vegetable products, $14,161, 999; machinery, instruments, tools and appa ratus, $11,192,688; arms, ammunition and explo sives, $8,639,150; animal products, $5,755,723; perfumery pharmaceutical and chemical arti cles, g555,533; paper and cardboard and manu factures thereof, $2,467,004; beverages, $1,497, 261; miscellaneous, $1,269,609. The effect of the European War upon Chilean commerce is described in the following paragraphs: The United States in 1915, for the first time, ranked first both in exports from and imports into Chile, receiving more than 42 per cent of Chilean exports and selling to Chile more than 33 per cent of the goods imported Before the European War, the order• of im portance of countries in trade with Chile, both export and import, was Great Britain, Germany and the United States. But while the exports from Chile to the United States were $1/3,765, 000 greater, the imports from the United States were $1,510,121 less in 1915 than in 1914. In Other words, the increase in exports to the United' States was greater than the total amount of imports from this source.' (Supplement to Commerce Reports, Annual Series, No. 41b, 10 Nov. 1916). In fact, the total imports from all countries showed a decrease of $42,538,977, while the total value of exports to all countries showed an increase of $10,179,052 in 1915 over 1914.
Curreney.—Although Chile is nominally ou a gold basis, the currency is inconvertible paper. Hitherto there has been no limit to the fluctua tions in the exchange quotations, because there has been no fixed unit of value as a basis for rates. A theoretical unit does indeed exist, namely, the gold peso, representing 0.599103 grammes of gold .91666 fine, or, say, 0.54918 grammes pure gold, of which the par value in terms of currency of the United States is $0.365, and its equivalent in British currency, 18d. But this law is not in operation, and the actual circulation is composed of government notes which are quoted on the market at rates fluct uating between 18 and 25 cents per peso. In 1915 the rates fluctuated in the neighborhood of thus showing a depreciation in the paper currency of about 25 per cent. The ac. non of the government in authorizing its con version office to issue notes against gold at a fixed rate of 12 pence per peso in 1916 indi cates the possibility of the adoption of the gold exchange standard, in a manner analogous to that of Argentina (q.v.), Brazil, Mexico (in time of peace) and Panama. The basis of exchange in Chile is the 90-day London bill, which is quoted in terms of pence per one paper peso (consult 'Latin American Monetary Sys tems and Exchange Conditions,) by Joseph T. Cosby, New York 1915, and 'Modern Foreign Exchange,) by V. Gonzales, 1914). Rates of exchange prevailing in Chile before the Euro pean War contrast with those prevailing in 1915, as follows: New York—sight —cur rency of United States —$1.00 -== 5.06 Peso
paper, on 7 Feb. 1913, but 6.64 Peso paper on 23 May 1915; London —90 days— 10 1/32d.— 1.00 Peso paper on 7 Feb. 1913, but 7gd.--- 1.00 Peso paper on 23 May 1915.
Banking and Banks with offices in Santiago or Valparaiso or both are Banco de Chile, Banco de Santiago, Banco Aleman Transatlantico, Banco Nacional, Banco Co mercial de Chile, Banco Espafiol, Banco de Chile y Alemania, The Anglo-South American Bank, Ltd., Edwards y Compafiia, Banco Ger manico de la America del Sur, London and River Plate Bank, Deutsche Sud-Amerikanische Bank Akt. Ges., Banco de la Republica, Banco Italiano, Banco Frances de Chile. Many have established branches. The Anglo-South Amer jean, with headquarters in London, has branches not only at Santiago and Valparaiso, but at Punta Arenas, Coquimbo, Copiap6, Serena, Iquique and Antofagasta. In the provinces we find, besides branches of the fore going, The Banco de Concepcion, Banco de 'Falco, Banco de Curico and Banco Comercial de Curica and Banco de Punta Arenas. The Banco de Chile is regarded as the official bank ing house of the government, though not strictly a government bank. There is, m fact, no government bank in Chile. Banking is carried out on rather more conservative lines than in most Latin countries. Interest is al lowed on current and deposit accounts, and advances are made rather more freely than is the habit with English joint stock banks.. With the German, Italian and Spanish banks there is a certain amount of co-operation of the home banks supporting the Chilean houses, which adds greatly to their strength and influence, especially in financing big commercial under takings. During the first half of 1917 the depositors in the National Savings Bank in creased 12 per cent over those of the cor responding period of 1916 and the deposits in creased 17 per cent. The annual deficit in the national finances, which had become traditional, was changed in 1916 into a surplus. A gov ernment institution known as the Caja de Cre dit° Hipotecario lends, on lands and buildings, 50 per cent of their market value. A private concern called the Banco Hipotecario de Chile carries on a similar business; and, organized under the same law (that of 1857) are the private institutions Banco Garantizador de Valores and Banco Hipotecario de Valparaiso. The function of all four is, primarily, to assist agriculture by making loans on real estate for long terms. Savings banks in Chile are of relatively modern origin. In the course of 20 years deposits have increased more than 20-fold in their "cajas de ahorros,' as they are called. Foreign banks, duly incorporated, may open branches in Chile. There i is, however, at present a of law requiring them to invest or maintain in Chile the capital they declare for use in that country, and limiting the deposits they can receive in proportion to such capital. There were, in 1917, six foreign banks doing business in Chile, each having many branches. A comparison of the financial movement during the year ending 31 Dec. 1914 with that for• the previous year °shows that the European War caused"— such is the statement in a memorandum by Chile— "no impairment of the integrity of the banking situation, notwithstanding, the fact that the foreign banks were constrained to remit to their home establishments the greater part of the funds that they had in the country." But it is necessary to place beside that statement another entitled °The Finances of Chile" in The Americas (Vol. I, No. 3), to the effect that the nitrate industry of Chile suffered perhaps more severely than any other industry of a neutral state, because approximately two-thirds of the nitrate exports before 1914 were taken by Ger many and Austria-Hungary, and these, of course, were cut off; that the effect upon the general business situation was serious, and the government was a direct and heavy loser in its revenues. Fortunately thegovernment had large gold credits in Europe. These credits are understood to have been accumulated for the purpose of establishing the currency system on a gold basis; but, inasmuch as they are available for discharging other government obligations, it seems probable that the gold standard will be postponed.