— 13 — 



which had appeared in previous issues, are completed by the addition 

 of official statistics dealing with the month of December. The increase 

 in the value of the exports in December 1908 as compared with 

 December 1907 was about '£ 1.400.000, or 39%. On the other 

 hand, in December 1908 there has again been a heavy decline in 

 the imports amounting, in round figures, to g? 1. 100.000, or over 40%. 



The total results are as follows: — 



1906 1907 1908 



£ £ £ 



Value of Exports 53 05947° 54 1 76898 44094992 



Value of Imports 33204041 40527603 35 491 410 



Active Commercial balance in the exchange 



of commodities 19855429 13649295 8603582 



The state of trade in Chile during the past year has given small 

 cause for satisfaction, owing to the events of the two preceding years, 

 such as earthquakes, excess of speculation, and the general commercial 

 crisis. The rate of Exchange fell to a point which had never before 

 been reached (about 7 3 / 4 d.), from which it only recovered towards 

 the end of the year up to about i2 3 / 4 d. The over-supply of the 

 market with all kinds of import articles — among others particularly 

 by the consumers of the products in which we are interested — brought 

 about an extremely sluggish condition of business, yielding very little 

 profit and occasionally being altogether at a standstill. It is true 

 that in the course of the past year three factors — viz., a good harv- 

 est, which realised satisfactory prices on account of the depreciation 

 of the currency; secondly, an increased output of copper, notwith- 

 standing the lower prices; and thirdly, a considerably diminished im- 

 portation, contributed to counteract a further worsening of the general 

 state of trade; but unfortunately a decided and lasting improvement 

 still appears to be far distant. In the neighbourhood of Valparaiso 

 and Santiago the crop this year has been a failure on account of 

 drought, and in the Northern part of the country many of the nitrate 

 works are suffering from over-capitalisation or mistakes in management, 

 although the prices of nitrate of soda have not been unsatisfactory. 

 It is probable that only the renewal of the Nitrate of Soda Trust 

 (if this should come about) would again bring some improvements in 

 the prospects of the financially weak companies, which otherwise will 

 have to stop working in face of the competition of the better-situated 

 older concerns. Another cause why careful business people are adopt- 

 ing a waiting policy with regard to Chile lies in the danger, which is 

 still threatening, that in spite of the bad economic condition and not- 

 withstanding its many opponents, the Act on the re-introduction 

 on I st January 19 10 of the Gold Standard (18 d.), is strictly carried 

 out. It is evident that the autocratic, untimely, and entirely doctrinal 

 enforcement of this Act (which no doubt was decreed with the best 



