Chile Economy 1948

By | December 14, 2021

Explorations (X, p. 55). In December 1939-January 1940 by a Swiss expedition, led by Arnold Heim, the area located west of Lake Buenos Aires in Chilean Patagonia was explored for the first time.

Demographic data (X, p. 58; App. I, p. 409). – The 1940 census makes the population amount to 5,023,539 residents, That is 6.8 per sq km. From a further estimate in 1946 the population was 5,479,000. (dens. 7.3). In the table on p. 574 gives the absolute and relative population of the provinces, territories and respective capitals, according to the 1940 census.

Economic conditions (X, p. 61; App. I, p. 409). РChile was, during the Second World War, the main supplier of nitrates and copper to the UN The export of these products contracted considerably after the end of the conflict, causing a serious economic crisis in the country, to repair which the government has decided to encourage agriculture as much as possible, so that it is able Рin addition to covering national needs Рto contribute to exports. The agricultural development and modernization plan will last for 18 years and will be linked to copious immigration to the country of European farmers. For Chile 2010, please check

Wheat gave, in 1945-46, a production of 8,807,000 q. The cultivation of the vine continued in its development (102,000 ha. In 1943-44, which gave 3.13 million hl. Of wine).

The sodium nitrate extraction industry in serious difficulty after 1935 (1.3 million tons per year) rose to 1,631,223 in 1947. The production of gold, which had reached 10,663 kg. in 1940, it dropped to 5,400 kg. in 1943; that of 17,139 kg silver. in 1940 it rose to 30,997 kg. in 1944.

Commerce (X, p. 64; App. I, p. 409). – It, which amounted to 295 million pesos of imports and 464 million pesos of exports in 1935 and already represented a recovery from the minimum value of 1933 (182 and 331 respectively), has recovered in recent years, as shown in the table following (in millions of gold pesos).

Finance (X, p. 67; App. I, p. 410). – The figures of the financial statements from 1939 to 1948, in millions of pesos, are shown below:

At December 31, 1947, the internal public debt amounted to 7.7 billion and the external debt to 7.8 billion. A general settlement of the entire foreign debt took place in March 1948, with the old securities being converted into amortizable bonds over a maximum period of 46 years at an increasing rate of up to 3 per cent, in 1954.

The balance of payments, favorable during the last years of the war, became passive again in 1946, mainly following heavy imports of machinery and equipment from the United States, making it necessary to adopt measures aimed at limiting imports.

The new gold parity of the pesos, accepted by the International Monetary Fund (in which Chile has a stake of 50 million dollars) is 0.0286668 fine grams, corresponding to an exchange rate of 31 pesos per dollar. Alongside this “official” exchange rate there are: a special “government” exchange rate of 19.47 pesos (parity with the dollar established in 1937), which is applied to the currency originating from the export of nitrates, iodine, copper and iron ores (about 75% of exports) and to financing operations of state expenditure abroad; a “preferential” exchange rate of 25.10 pesos for imports of certain essential products; a “free” exchange of 43, 10 pesos for all other operations.

With the law of February 15, 1941, Banco Central de Chile was exempted from the obligation, contained in its organic law, to maintain a minimum reserve for the notes in circulation. By another law of July 1942, he was authorized to purchase domestically produced gold at a price 15 % higher than the official United States price and to set aside foreign exchange reserves. At 30 June 1948 the Banco’s reserves amounted to 1,540 million, almost entirely made up of gold. At the end of May 1948, the circulation was 3,953 million pesos (December 1939 = 862 million) and deposits with commercial banks and savings banks rose to 12.4 billion, of which 9.9 at sight.

Chile Economy 1948