The sun., 1919-10-20
CHILEAN MINERAL
OUTPUT SLUMPS
War Needs for Nitrate and
Copper End and Many
Operations Suffer.
FOREIGN WORKERS QUIT
Country Turns to Greater Di-
4 versification of Industry,
but Is Handicapped.

speciaI correspondence to the Latin
American Section Of the SUN.
ASroFAGAsTA. Chile, Sept. 1s.-How-
ever great may be the advantages which
have accrued to the other nations of the
world by the advent of peace, for Chile
IN general and the mineral regions In
particular, the end of the war has meant
a distinct slowing down in Industrial
progress The northern half of Chile Is
practically desert, but in spite OF this
fact It is potentially the richest part of
the country. All of the nitrate and
most of the copper comes from this
region and during the war when thesa
products were in great demand pros
perity was general To-day conditions
are entirely different, for both nitrate
and copper are drug on the market.
The nitrate industry of Chile Is COM
paratively young, dating back to the
War Of the Pacific. when the provinces
of Antofagasta, Tarapaca and Tacna
were secured from Bolivia and Peru.
The production of nitrate in 1891
amounted to 771,e15 metric tons, and
since that date It has gradually in
creased until in 1913 1t reached the to-
tai of 2,739,3S1 tons. At the outbreak
Of the war the nitrate industry was
thrown into serious disorder and num-
Der Of the oficinas were compelled TO
shut down.
The return to business was almost as
sudden as the crash. and during 1915
most of the ofcinas earned record sums.
This prosperity continued until the sign
ing of the armistice, when a decline set
DFndlCtiOn
less than half what it was a year ago.
and only Sc out of ia oticinas are now
in operation.
At all the nitrate ports conditions
are very bad and most of the workmen
of Bolivian and Peruvian origin are re-
turning to their respective countries.
while the number of Chilean workmen
has been greatly reduced. The great
reduction in output which has taken
place may be judged from the fact that
while in the first seven months OF 1919
$1,000. 900 quintals were produced. the
hgures for this year show only 22.O00,-
600.
Copper Industry Languishes.
The same condition is TO be found In
the copper industry, where a great re-
duction in output has taken place as
the result OIL tl6 CoiitAiuSu AON %
being offered for this product. This is
particularly important to the United
States, fo- both the two leading copper
companies are North American, and
their Investments amount to about
$4,000, 900. They are capable OF pro-
ducng more than 100000 tons of cleo
trolytic copper per year at an average
cost of less than cents per pound, but
they are both operating far from ca
pacity at present.
The Government also Is finding itself
facing a deficit in revenue for the COM
ing year, for more than half OF the
Government income is derived from ex-
port taxes levied on the nitrate. AS
about 10 per cent Is derived from the
export duties on copper. 1t can be easily
realized how great are the difiicultes
which the falling off in production Of
these two products will entail.
In fact, 1t has long been felt that
Chile was making a mistake In depend
ing TO such a great extent on revenues
which come from the mineral industry
alone. Thus far the efforts of the coun-
try's economists have been of no avail
because II is felt that there is little &c
fear Chile has in sight enough nitrate
to supply the world for 200 years at the
present rate of production. and witt
such figures to rely on the spirit o.
'rnsnana" has been too powerful. Th'
extent to which Chile depends on hel
mineral Industries may be Judged from
the fact that mineral exports OF 1911
were in the neighborhood Of 30o.000.00
gold pesos. while the vegetable and ami
nal exports amounted to only 2o,000.00'
and 10000. 900 gold pesos respectively.
In its attempt to secure diversifi
cation OF industries Chile Is rathe
handicapped as compared with Brazil
Roughly speaking. two-fifths of Chile
taken up by the desert mineral region
which on account of the small volume o
water contained in the rivers whic
traverse 1t can never be of use for agrt
cultural purposes. Two-fifths more
10 be found in the fertile Central Va
ley and the more available forest land
CT the southern part. This Is the bes
part Of Chile and is adapted to inten
sive cultivation. but the actual area
small compared with the broad field
OF Argentina. To the far south are t
be found still more densely foreste
regions which will remain untouched fo
many years to come owing to the diff
culties OF access and the inclemency G
the weather.
COnI and Water Power.
L would seem, therefore. that the ~
ture OF Chile outside OF mineral indu:
tries is to be found in the developmer
Of her manufacturing industries
spite OF the fact that Chile import
100000 tons of coal per annum.
has extensive deposits of a soft col
which could be used advantageously fo
manufacturing purposes. OF more in
portance. however, than the coal d.
Ioslts is the fact that Chile is singr
larly favored with natural water powe
The configur8tion of the country an
the numerous streams crossing the teri
tory OF the central section especial
favor the establishment Of great long
tud,nal artery for distributing electric;
energy. II has been estimated that
The zone included between Aconcagu
sEd the lake region OF the south. 1000
COO ho-s'-power may be developed. A
present the~o are only two importaI
plants that generate electricity usin
water from the rivers of the country.
Chile has the raw materials needle
especially mineral Approximately 20
100000 pounds OF wool are produce
annually In the territory Of Magellane
mo forests of the south offer amp
lumber resources. Cotton Gun be oil
talned easily from Peru on the mort
And iiually for the working up OF the