The internal commerce of Chili has hitherto been of small importance, notwithstanding the many advantages possessed by this fertile country. Its principal source, industry, or necessity rather, is still wanting. An extensive commerce requires a large population, and in proportion as the one increases, the other will necessarily advance. A communication by water, which greatly facilitates the progress of commerce, has already been opened. In several of the Chilese ports, barks are now employed in the transportation of merchandise, which had formerly to be carried by land on the backs of mules, with great trouble and expence; and this beneficial alteration will probably be followed with others of greater importance. Several large ships have been already built in the harbour of Conception, and at the mouth of the river Maule, in the port of Huachapure; by which the external commerce of the kingdom is carried on with Peru and Spain. In the trade with Peru, twenty-three or twenty-four ships are employed, of five or six hundred tons each, part of which belong to Chili and part to Peru. These usually make three voyages yearly, and carry from Chili wheat, wine, pulse, almonds, nuts, cocoa-nuts, conserves, dried meat, tallow, lard, cheese, bend-leather, timber for building, copper, and a variety of other articles; and bring back return cargoes of silver, sugar, rice, and cotton. The ships which trade directly from Spain to Chili, receive gold, silver, copper, Vicugna wool, and hides, in exchange for European commodities. A permission to trade to the East Indies would be very profitable to the Chilese, as their most valuable articles are either scarce or not produced in these wealthy regions of Asia, and the passage across the Pacific Ocean would be easy and expeditious, in consequence of the prevalence of southerly winds. The only money current in Chili is of gold and silver, which is considerably embarrassing to internal commerce, as the smallest silver coin is the sixteenth of a dollar, or 4-1/4d. The weights and measures are the same with those of Madrid.
"Of the two great sources of commerce, agriculture and manufacturing industry, the former alone hitherto animates the internal trade of Chili, or even the commercial intercourse between that country and Peru[107]. The working of mines also occupies the attention of many of the colonists, especially in the provinces of Copaipo, Coquimbo, and Quillota. Manufacturing industry is hitherto so trifling as not to deserve notice. Notwithstanding the abundance of raw materials for this purpose, such as flax, wool, hemp, skins, and metals, which might give employment to a flourishing manufacturing industry, it is still in a languid condition. The inhabitants however manufacture ponchos, stockings, carpets, blankets, skin-coats, saddles, hats, and other small articles, chiefly for the use of the poorer people, as those used by the middle and higher ranks are from the manufactures of Europe. These enumerated articles, with the sale of hides and leather, grain and wine, form the whole internal commerce of Chili. The external commerce is principally with the ports of Peru, and particulary with that of Callao, the port of Lima. To the amount of about 700,000 dollars is yearly sent to Peru in the productions of Chili, serving not only to counterbalance the importations from that country, but leaving an annual balance of 200,000 dollars in favour of Chili. The trade between Chili and Buenos Ayres is on the contrary in favour of the latter, as Chili has to pay about 300,000 dollars yearly in cash for the herb Paraguay alone. The other articles received from Buenos Ayres are probably paid for by those which are sent to that place. In the trade with Spain, the productions of Chili go but a short way in payment of the European goods which are annually imported to the value of more than a million of dollars. Gold, silver, and copper, form the whole of the articles sent from Chili to Spain, as the hides and Vicugna wool are of too little importance to be considered."
[Footnote 107: These observations on the trade of Chili, distinguished by inverted commas, are inserted into the text from a long note in this part of the work of Molina--E.]
"Gold to the extent of 5200 marks[108], 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 yearly[109]. 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 dollars[110], the silver to 244,000[111]; and the copper annually extracted from the mines of Chili is estimated at from eight to ten thousand quintals[112]. From these data it will not be difficult to form a general estimate of the value of yearly produce from Chili[113]."
[Footnote 108: The mark being eight ounces may be valued at L.4; hence the yearly production of gold in Chili is equal to about L.166,400 sterling.--E.]
[Footnote 109: At eight ounces the mark, and 6s. per ounce, this amounts only to the yearly value of L.72,000 sterling.--E.]
[Footnote 110: At 4s. 6d. the dollar, equal to L.147,600 sterling.--E.]
[Footnote 111: Or L.54,900 sterling.--E.]
[Footnote 112: The quintal of 100 pounds, at 1s. 6d. a pound, gives an average value of L.67,500 sterling for the yearly produce of copper.--E.]
[Footnote 113: The entire value of the three enumerated articles amounts to L.270,000 sterling; but the other articles of export from Chili, formerly enumerated, are not here included.--E.]