Helping an industry in crisis: Caja Crédito Salitrero (1907-1912)

Abstract

Our article analyses the situation of the saltpeter industry over a period determined by the global economic recession. The crisis had a direct impact on activity, by decreasing demand and, at the same time, its value in global markets. Without financial support in the banking system, the creation of the Caja de Crédito Salitrero had the dual objective of increasing the participation of national capital in the nitrate property, seeking to make profitable, in the short term, the expected reactivation in mineral exports. Despite expectations, the Caja did not fulfill its function, because the requirements to grant loans were prohibitive for small producers while the main nitrate companies chose to request direct assistance from the government. Its closure, in 1912, made it possible to allocate part of its reserve capital to the construction of the National Library.