Aftermath Peruvian nitrate monopoly

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historians agree monopoly did not meet expectations set out in law of 1875, , same or higher revenues have been obtained simple export tax.


according carlos contreras carranza, there 2 views on law s significance peru. while authors consider war interrupted fiscal reform not irrevocably doomed fail, other historians see yet improvised policy, easy guano revenues had generated. in former view, nationalization birth of new bourgeoisie, national , progressive; in latter view abortion of new bourgeoisie of tarapacá, expropriated , displaced business in favor of lima s old elite, accustomed enriching state economy.


on eve of war, guillermo billinghurst, member of peruvian senate , later president of peru, advocated restitution of salitreras former owners, outbreak of war made discussion impossible.


in 1890 peruvian government approved settlement, known grace contract, resulted in holders of peruvian sovereign debt taking control of country s railroads. government did not issue new sovereign debt until 1906.


while origins of war of pacific closely related saltpeter, peruvian historiography has been reluctant review issue. regarding attitude, bolivian historian said egregious lie peru went war bolivia .


after war, chile possessed guano , saltpeter fields of pacific coast of south america, never built state monopoly. nonetheless, control gave country virtual monopoly of nitrates, , income acquired taxation allowed country fund development. during 20th century, chile further exploit atacama s mineral wealth nationalizing copper industry.








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