Hostname: page-component-cd9895bd7-jkksz Total loading time: 0 Render date: 2024-12-25T14:34:30.893Z Has data issue: false hasContentIssue false
  • English
  • Français

VINCULACIONES POLÍTICAS EN UN RÉGIMEN DE BANCA LIBRE: EL CASO DE LA CRISIS BANCARIA DE 1878 EN CHILE*

Published online by Cambridge University Press:  08 March 2016

Ignacio Briones
Ignacio Briones*
Affiliation:
Universidad Adolfo Ibáñez
Get access Rights & Permissions [Opens in a new window]

Abstract

In 1878 Chile experienced a banking crisis which brought an end to the Chilean free-banking period based on convertibility initiated in 1860. Using monthly bank balance sheets and other primary sources, I analyze the period and argue that one important explanation for the crisis was the growing relationship between banks and government through state loans to finance fiscal deficits and privileges to the issuing banks. I claim that the crisis emerged from a large bank loan in late 1877 which induced over-issuance and depreciation expectations leading, logically, to a bank run. The Chilean case provides valuable evidence of an element frequently neglected by the free-banking literature: the links between banks and government.

Resumen

En 1878 un pánico bancario pone fin al periodo de banca libre basado en la convertibilidad metálica e iniciado en Chile en 1860. En este trabajo analizo el periodo apoyándome en los balances mensuales de bancos y otras fuentes primarias. Argumento que una causa importante de la crisis fue la creciente relación entre banca y gobierno a través de préstamos al Estado y privilegios a los bancos de emisión. Muestro que la crisis se asocia con un importante préstamo con los bancos a fines de 1877. Sostengo que éste inducía a la sobreemisión y a expectativas de depreciación cuyo resultado racional era una corrida bancaria. El caso chileno proporciona evidencia valiosa sobre un elemento que ha recibido relativa poca importancia en la literatura de banca libre: los vínculos entre bancos y gobierno.

Keywords

Free-bankingcompeting notesbanking crisisdeficit monetizationgovernment privileges.G01G21H30N26N20P16Banca libreemisión competitivacrisis banacariadéficit fiscalprivilegios de emisión
Type
Articles/Artículos
Information
Revista de Historia Economica - Journal of Iberian and Latin American Economic History , Volume 34 , Issue 3 , December 2016 , pp. 479 - 512
Copyright
© Instituto Figuerola, Universidad Carlos III de Madrid, 2016 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

The author is very grateful to the Editor of the Journal of Iberian and Latin American Economic History and three anonymous referees for their valuable comments and suggestions.

a

School of Government, Universidad Adolfo Ibáñez, Avenida Diagonal las Torres, 2640, Peñalolén, Santiago, Chile. Phone: (56-2)23311361. Email: [email protected]

References

BIBLIOGRAFÍA

Aranguiz, H. (1993): «Notas para el Estudio de los Bancos Extranjeros en Chile: 1889-1971». Historia 27, pp. 19-68.Google Scholar
Briones, I. (2004): Free-Banking: The Idea and the Reality. The Chilean Experience 1860-1898. Ph.D. Dissertation, Sciences-Po, Paris.Google Scholar
Briones, I. y Rockoff, H. (2005): «Do Economists Reach a Conclusion on Free-Banking Episodes». Econ Journal Watch 2 (2), pp. 279-324.Google Scholar
Calomiris, Ch. y Khan, CH. (1996): «The Efficiency of Self-Regulated Payments Systems: Learning From the Suffolk System». Journal of Money Credit and Banking 28 (4), pp. 767-797.Google Scholar
Calomiris, CH y Haber, S. (2014): Fragile by Design: The Political Origins of Banking Crises and Scarce Credit. Princeton, N.J.: Princeton University Press.Google Scholar
Carr, J. y Mathewson, F (1988): «Unlimited Liability as a Barrier to Entry». Journal of Political Economy 96 (3), pp. 766-784.Google Scholar
Checkland, S. G. (1975): Scottish Banking: A History, 1695-1973. Glasgow: Collins.Google Scholar
Conoboy, P. J. (1976): Money and Politics in Chile, 1878-1925, Ph.D. Dissertation. University of Southampton, U.K.Google Scholar
Courcelle-Seneuil, J. G. (1857): Bancos de Circulación. Santiago, Chile: Revista de Ciencias y Letras, pp. 37-50.Google Scholar
Diaz, J.; Lüders, R. y Wagner, G. (2010): La República en Cifras. EH Clio Lab-Iniciativa Científica Milenio. URL: http://www.economia.puc.cl/cliolab.Google Scholar
Dow, Sh. (1996): «Why the Banking System Should Be Regulated». Economic Journal, Royal Economic Society 106 (436), pp. 698-707.Google Scholar
Dowd, K. (1988): «Automatic Stabilizing Mehanisms under Free-Banking». Cato Journal 7 (2), pp. 643-659.Google Scholar
Dowd, K. (1994): «Competitive Banking, Banker’s Clubs, and Bank Regulation». Journal of Money, Credit and Banking 26 (2), pp. 289-308.CrossRefGoogle Scholar
Dowd, K. (1996): «The case for Financial Laissez-Faire». The Economic Journal 106 (436), pp. 679-687.CrossRefGoogle Scholar
Echeverri, L. M. (1991): Free Banking in Colombia, 1865-1886. Ph.D. Dissetrtation, University of Georgia.Google Scholar
Economopulus, A. (1988): «Illinois Free Banking Experience». Journal of Money, Credit and Banking 20 (2), pp. 249-264.Google Scholar
Espinoza, R. (1909): Cuestiones Financieras de Chile. Santiago, Chile: Imprenta Cervantes.Google Scholar
Fama, E. (1983): «Financial Intermediation and Price Level Control». Journal of Monetary Economics 12 (1), pp. 7-32.Google Scholar
Fetter, F. (1931): Monetary Inflation in Chile. Princeton University Press.Google Scholar
Fuentealba, L. (1945): Courcelle-Seneuil en Chile. Errores del Liberalismo Económico. Santiago, Chile: Prensas de la Universidad de Chile.Google Scholar
Goodhart, Ch. (1988): The Evolution of Central Banks: A Natural Development? Cambridge, MA: MIT Press.Google Scholar
Goodspeed, T. B. (2016): Legislating Instability: Adam Smith, Free Banking, and the Financial Crisis of 1772. Harvard University Press.CrossRefGoogle Scholar
Gorton, G. (1996): «Reputation Formation in Early Bank Notes Market». Journal of Political Economy 104 (21), pp. 346-398.CrossRefGoogle Scholar
Gorton, G. (1999): «Pricing Free Bank Notes». Journal of Monetary Economics 44, pp. 33-64.CrossRefGoogle Scholar
Grossman, R. y Imai, M. (2013): «Contingent capital and bank risk-taking among British banks before the First World War1». The Economic History Review 66 (1), pp. 132-155.CrossRefGoogle Scholar
Haber, S. (2008): «Political Institutions and Financial Development: Evidence from the Economic Histories of Mexico and the United States», en Haber, S., North, D. C. y B. Weingast, (eds.), Political Institutions and Financial Development. Stanford University Press.Google Scholar
Hammond, B. (1957): Banks and Politics in America: From the Revolution to the Civil War. Princeton University Press.Google Scholar
Hayek, F. A. (1976): Denationalisation of Money. The Argument Refined. London: Institute of Economic Affairs.Google Scholar
Hickson, CH. y Turner, J. (2002): «Free Banking Gone Awry: The Australian Banking Crisis of 1893». Financial History Review 9 (2), pp. 147-167.Google Scholar
Hickson, CH. y Turner, J. (2004): «Free Banking and the Stability of Early Joint-Stock Banking». Cambridge Journal of Economics 9 (6), pp. 903-919.Google Scholar
Hirschman, A. O. (1963): «Inflation in Chile», en Hisrshman, A. O. (ed.), Journeys Toward Progress. New York: The Twentieth Century Fund, pp. 159-223.Google Scholar
Iftekhar, H. y Dwyer, G. Jr (1994): «Bank Runs in the Free Banking Period». Journal of Money, Credit and Banking 26 (2), pp. 271-288.Google Scholar
Jeftanovic, P. y Luders, R. (2007): «La Banca Libre en Chile». Documento presentado en el Primer Congreso Latinoamericano de Historia Económica (Cladhe I), Montevideo, Uruguay.Google Scholar
King, R. (1983): «On the Economics of Private Money». Journal of Monetary Economics 12 (1), pp. 127-158.Google Scholar
Klein, B. (1974): «The Competitive Supply of Money». Journal of Money, Credit, and Banking 6 (4), pp. 423-453.Google Scholar
Llona, A. (2000): «Chile During the Gold Standard: A Successful Paper Money Experience», en Martín Aceña, P. y J. Reis (eds.), Monetary Standards in the Periphery: Paper, Silver and Gold, 1854-1933. New York: St. Martin’s Press, pp. 174-206.Google Scholar
Mayo, J. (1987): British Merchants and Chilean Development, 1851-1886. London: Westview Press.Google Scholar
Meisel, A. (1992): «Free banking in Colombia», en Dowd, K. (ed.), The Experience of Free Banking. London and New York: Rutledge, pp. 93-102.Google Scholar
Millar, R. (1994): Políticas y Teorías Monetarias en Chile 1810-1925. Santiago, Chile: Universidad Gabriela Mistral.Google Scholar
MorÓn, E. (1993): La Experiencia de Banca Libre en el Perú, 1860–1879. Lima: Centro de InvestigaciÓn de la Universidad del Pacífico.Google Scholar
Nazer, R. (2000): «La fortuna de Agustín Edwards Ossandon: 1815-1878». Historia 33, pp. 369-415.Google Scholar
Ossa, N. (1888): Ligeros Apuntes Sobre el Establecimiento y Desarrollo de los Bancos de Emisión en Chile. Valparaíso, Chile: Revista Económica, n°9, pp. 97-112.Google Scholar
Rockoff, H. (1974): «The Free Banking Era: A Reexamination». Journal of Money, Credit and Banking 6 (2), pp. 141-167.Google Scholar
Rockoff, H. (1985): «New Evidence on Free Banking in the Unisted States». American Economic Review 75 (4), pp 886-889.Google Scholar
Rolnick, A. y Weber, W. (1983): «New Evidence on the Free Banking Era». American Economic Review 73 (5), pp. 1080-1091.Google Scholar
Ross, C. (2003): Poder, mercado y Estado. Los bancos en Chile en el siglo XIX. Santiago, Chile: Lom Ediciones.Google Scholar
Ross, A. (1886): Los Bancos de Chile y la Lei que los Rige. Valparaíso, Chile: Imprenta Excelsior.Google Scholar
Ross, A. (1893): El Problema Financiero. La acción de los Bancos de Emisión para Producir la Situación Actual en Chile. Valparaíso, Chile: Imprenta del Universo de Guillermo Helfman.Google Scholar
Ross, A. (1910): Le Chili 1851-1910. Soixante ans de questions financières, d’Études monÉtaires et de problèmes des banques. Valparaíso, Chile: Editorial no identificada.Google Scholar
Santelices, R. (1893): Los Bancos Chilenos. Santiago, Chile: Imprenta y Encuadernación Barcelona.Google Scholar
Sater, W. F. (1979): «Chile and the world depression of the 1870’s». Journal of Latin American Studies 11 (1), pp. 67-99.Google Scholar
Schuler, K. (1992): «The World History of Free Banking: an Overview», en Dowd, K. (ed.), The Experience of Free Banking. London and New York: Rutledge, pp. 7-47.Google Scholar
Selgin, G. (1988): The Theory of Free Banking: Money Supply under Competitive Note Issue. Cato Institute, Rowman & Littlefield Publishers.Google Scholar
Selgin, G. (1994): «Free Banking and Monetary Control». The Economic Journal 104 (427), pp. 1449-1459.CrossRefGoogle Scholar
Selgin, G. y White, L. (1994): «How Would Invisible Hand Handle Money?». Journal of Economic Litterature 32 (4), pp. 1718-1749.Google Scholar
Sicotte, R.; Vizcarra, C. y Wandschneider, K (2009): «Military conquest and sovereign debt: Chile, Peru and the London bond market, 1876–1890». Cliometrica 4 (3), pp. 293-319.Google Scholar
Sylla, R. (2006): «Political Economy of Financial Development: Canada and the United States in the Mirror of the Other, 1790—1840». Enterprise & Society 7 (4), pp. 653-665.Google Scholar
Taub, B. (1985): «Private Fiat Money with Many Suppliers». Journal of Monetary Economics 16 (2), pp. 195-208.Google Scholar
Subercaseaux, G. (1922): Monetary and Banking Policy of Chile. Oxford: Clarendon Press, Humphrey Milford.Google Scholar
White, L. (1984a): «Competitive Payments Systems and the Unit of Account». American Economic Review 74 (4), pp. 699-712.Google Scholar
White, L. (1984b): Free Banking in Britain: Theory, Experience, and Debate, 1800-1845. Cambridge University Press.Google Scholar
Zegarra, L. F. (2013a): «Free banking and bank entry in Latin America». Investigaciones de Historia Económica 9 (3), pp. 131-142.Google Scholar
Zegarra, L. F. (2013b): «Free-Banking and Financial Stability in Peru». Journal of Austrian Economics 16 (2), pp. 187-226.Google Scholar
Zegarra, L. F. (2014): «Bank laws, economic growth and early banking in Latin America: 1840–1920». Explorations in Economic History 53, pp. 101-119.Google Scholar