New-York tribune., 1921-11-12
Chile Helped
I'm Every w ay
BY New Loan
Observers Had Doubted the
Possibility of Negc.iat-
ing Another Project at
This Time: Future Bright
Exchange Is Unaffected
To Effect Improvement in
Peso 1t Will BE Necessary
to Put New Life in Nitrate

fSpecso1 Foreign Financial CorrcSpondence)
SANTIAGO, Chile, Oct. IL Special
interest has been manifested in Chile
in the final arrangements for the loan
in the United States for 100000
pounds sterling and another for 25,-
100000 Chilean gold pesos of 1sd.
These projected loans have been
much in the foreground of public
thought and discussion during recent
weeks, and speculation has been rife as
to the possibility Of the government
being able successfully to negotiate
another large loan abroad at this time
Its accomplishment. coming as it does,
at a period when economic depression
has about reached it's lowest level, is
having salutary effect on the outlook
ing the creation of greater feeling
of confidence and optimism on the part
of the public in general.
1t is interesting to note that the new
loans will be placed by Blair e. Co.,
whose agents in Chile, Errazuriz, Simp-
son & Co., were recently awarded, as
agents for the Westinghouse company,
the contract for the electrifcation of
the first zone of the state railways.
For Current Needs
The sums realized from the fiotation
are destined to meet the current needs
of the government and the state rail
ways; the 100000 pounds sterling, it
is believed, will be expended on the
@ro %~l 11a ,%xf, sc @1a
way, already referred to, and the re-
naming 25000,000 gold pesos on the
various other obligations of the gov
ernment.
Contrary to what was expected, the
successful elimination of the negotia-
tions for floating the loans has had no
appreciable effect on the exchange.
This might be explained, however, by
the fact that much of the money con-
tracted for will necessarily remain
abroad or soon be returned there to
meet. the payment of debts contracted
by the government and the railroads
for materials purchased For a healthy
strengthening of the exchange market
and a permanent improvement in the
value of the peso it will be necessary
to go step further and find means
of putting renewed life into the nitrate
industry, thereby increasing the export
trade of the country, with its resultant
influx of capital.
Conference on Nitrate
There is, in effect, in Chile at the
present moment lively hope that this
latter may soon be accomplished Sir
Herbert Gibbs, chairman of the or
ganization known as the "Pool," who
are holders of the large nitrate stocks
existing in Europe, together with rep
resentatives of the Association of Pro-
ducers and delegates from the Chilean
government, have been holding con-
ferences in Valparaiso during the last
week in an effort to work out mutu-
ally satisfactory plan for selling the
present accumulated stocks of nitrate
at reduced price and with minimum
of loss to all concerned, and at the same
time to fix a schedule of future selling
prices sufficiently reduced to permit its
being purchased in the large quantities
needed by agriculturists in all parts of
the world, thereby maintaining the in
dustry at its maximum of production.
The final outcome Of these conferences
cannot as yet be foretold with GER
tainty, but there is a general feeling
that a satisfactory working agreement
will be reached shortly.