THE BATTLESHIP “O’HIGGINS.”
Chile has always possessed a good navy. The naval fleet at the present time is composed of forty vessels, among which are nine ironclads and protected cruisers, five gunboats and torpedo cruisers, thirteen torpedo boats, four destroyers, etc. The finest ship is the Esmeralda, which is a boat of seven thousand and thirty tons and capable of a speed of twenty-one knots. She carries two 8-inch and sixteen 6-inch guns. Then come the O’Higgins, Ministro Zentano, Chacabuco, and President Errázuriz—all of them protected cruisers. The Capitan Prat is a battleship of six thousand nine hundred and sixty-six tons and twelve thousand horse-power and a nominal speed of eighteen and three-tenths knots. This boat was built in 1890. The cruisers were mostly constructed from 1896 to 1898 in British and Italian shipyards. Chile has recently placed an order for a Dreadnaught of the latest design, which will still further add to the efficiency of the Chilean navy. In this respect she is following the lead of Brazil and Argentina.
The United States could and should have a much greater proportion of Chile’s trade. Too many manufacturers depend wholly on business houses conducted by English or German merchants—men who naturally prefer the goods made by their own countrymen. Others send representatives who are illy adapted to deal with Chileans and other Latin Americans. An American bank would work wonders in developing trade. It seems strange that American capitalists hesitate about investing their money in such an institution. Foreign banks established in South America have paid good dividends. Among those in Chile are the Anglo-South American Bank, Bank of London and the River Plate, German Transatlantique and the Banco Italiano. The figures of exports and imports given below are in themselves eloquent testimonials of the value of Chilean trade. Branch houses in charge of hustling Americans, or agencies placed with American importers should be the aim of every manufacturer who intends to push the trade into Chile or any of the other republics of Latin America. At the present time there are very few citizens of the United States resident in Chile—probably less than five hundred in the entire republic.
“Why do you not buy your steel work in the United States?” I asked of a wealthy Chilean gentleman who was building a large modern block in Santiago.
“I wanted to do so,” he answered, “but your manufacturers would not grant the terms that were gladly and voluntarily offered me in Europe. As a result, I bought all my steel for this building, which will cost more than a half million dollars gold, in Belgium. The only equipment for the building made in the United States will be a half dozen elevators.”
This simply illustrates one phase of the shortsightedness of our manufacturers in dealing with South America. The field is a large one, and a discriminating one as well. It is humiliating at times to an American to travel throughout the length and breadth of South America, and see the trade that legitimately belongs to us slipping away to Europe, even when some of our own factories in that particular line are idle because of lack of orders. There has been an awakening in the past few years, but there must still be much progress before the American business man catches up with the British and German in the pursuit of the world’s trade.
Chilean trade has reached very respectable figures in recent years. The total exports for the year 1910 amounted to $115,792,811, of which $98,234,035 were mineral exports. Of this nitrate comprised the greatest item. Great Britain took nearly one-half the exports; the United States purchased $24,680,278, slightly more than Germany, which was a decided increase over the preceding year. The imports amounted to $108,627,188. Great Britain sent almost one-third of this, Germany was second with less than one-fourth, and the United States was third with goods valued at $13,369,774, or about one-eighth of the whole. Next in order came France, Argentina, Peru and India. Spain, the mother country, furnished less than one per cent. of the whole. This shows a large per capita importation, amounting to more than $30.00, which is exceeded only by Argentina and Uruguay, and shows a trade well worth looking after. Of the goods imported textiles were one-fourth of the whole. Mineral products, including coal, oil products, etc., are a third, and machinery constituted about eleven per cent. of the whole. Machinery and petroleum products are the principal importations from the United States.
The American firm of W. R. Grace & Co. occupy a prominent position in the commercial world along the west coast of South America, where it is the largest firm engaged in business. Its founder, Wm. R. Grace, was born in Ireland, but came to Peru in his youth. After making a success in business there he went to New York and established the head offices of his company. He became a citizen of the United States, and assisted the government on several occasions. Mr. Grace became very prominent in that metropolis. He was twice elected mayor, and gave a very creditable administration. Mr. Grace died in 1904. W. R. Grace & Co. took over the Oroya Railroad in Peru and completed it. They recently constructed the Chilean end of the Transandine Railway, and have been engaged in many other important public works in Chile, Peru and Bolivia. The foundation of the fortune of Grace & Co. was guano and nitrate, and a line of boats are run between the west coast and New York, although flying the English flag. Branch houses are established in the principal cities of Chile, and an immense business is done in importation and exportation. The principal offices are still maintained in New York, although one of the members of the firm lives in London.
Chile’s dependence upon the sea renders foreign trade an essential element in her prosperity. She has a hardy seafaring population, and thousands are employed in that occupation. She is probably destined to have a much larger part in the coast carrying trade in the future. Next to the national steamers, the British have the biggest share in the carrying trade of Chile.
