36.3: Chile

36.3.1: Chile’s Presidential Era

The Presidential Era is the period in Chilean history from the adoption of the constitution on September 18, 1925, to the fall of the Popular Unity government headed by President Salvador Allende on September 11, 1973. It coincides with what is known as the “development inwards” period in Chilean economic history.

Arturo Alessandri Palma and a New Constitution

On January 23, 1925, the Chilean military overthrew the September Junta in a coup d’etat. They handed power over to General Pedro Dartnell as interim president, but Dartnell formed another junta, the January Junta, during his time in power. On March 20, 1925, Arturo Alessandri Palma, former president of Chile, returned from exile, ending the January Junta. Alessandri drafted a new constitution, which was approved by plebiscite on August 30 and put into effect on September 18. The new constitution reinforced presidential powers over the legislature. Alessandri also created a Central Bank, breaking from Chile’s adherence to classically liberal economic policies.

Alessandri with his Great Dane, Ulk (1932)

Alessandri’s government was composed of a coalition of left-wing and radical groups, but many of these groups began to distance themselves from the President after he took power. Alessandri’s government repressed demonstrations, leading to notable massacres such as Marusia and La Coruna. As a result, Alessandri began encountering internal opposition from his own Minister of Defense, Colonel Carlos Ibanez del Campo, who had a popular following. Ibanez lent his support to a manifesto drafted across various political parties calling for Ibanez to run as an official candidate for president. As a result, Alessandri resigned.

Ibanez was prompted to find a candidate that all parties could agree upon. Emiliano Figueroa Larrain from the Liberal Democratic Party was chosen and elected in October 1925 with nearly 72% of the vote. Ibanez was designated the Minister of the Interior in February 1927, meaning he would become vice president in the case of a vacancy in the presidency. Ibanez convinced President Figueroa to resign two months later, took his place as vice president, and called for elections, which took place in May 1927. Ibanez overwhelmingly won the presidency with 98% of the vote.

Carlos Ibanez (1827-1931)

Carlos Ibanez del Campo (1927)

Ibanez’s cabinet remained popular until the outbreak of the Great Depression in 1931. As president, Ibanez exercised dictatorial powers and enjoyed being compared to Benito Mussolini. Early in Ibanez’s administration, Congress and various political parties did not protest against his increasingly dictatorial leanings. In fact, Ibanez was granted decretos con fuerza de ley (or decrees having forces of law) within a democratic framework. He suspended parliamentary elections, naming politicians to the Senate and Chamber of Deputies himself. Freedom of press was restricted with 200 politicians arrested or exiled, including former president Alessandri. The Communist Party was proscribed and the workers’ movement was strongly repressed.

Ibanez’s popularity drew heavily from American loans, which helped promote a high rate of growth throughout the country. Using these funds, Ibanez launched important public works, including the construction of canals, bridges, prisons, ports, and restoration of the facade of the presidential palace as well as the secondary presidential residence at Castillo Hill. His popularity survived the Wall Street crash of 1929, the effects of which were felt in Chile by the end of 1930. In 1930, prices of saltpeter and copper, on which the Chilean economy was strongly dependent, abruptly fell, at which point all loans were halted and called. Without an influx of foreign currency and with the U.S. and European implementation of high tariffs and return to protectionism, the Chilean economy began to suffer. Unemployment in northern mines affected tens of thousands of people. In 1931, the influx of international credit into Chile also ended, pushing the state to the edge of bankruptcy.

Although Ibanez’s government increased export taxes to 71% and established trade barriers, he did not manage to make balance of trade more equitable for Chile, which led to a depletion of gold reserves. With the economic situation showing no sign of improvement, the exiled Alessandri began to plan a comeback and a number of conspiracies were undertaken to oust Ibanez from power, although they all proved unsuccessful. Public unrest abounded. Students at the University of Chile and the Pontificia Universidad Catolica de Chile initiated demonstrations. Physicians and lawyer groups also joined in public demonstrations. In the midst of all the demonstrations, police forces killed more than 10 people, and as a result, Ibanez was forced to resign on July 26, 1931. Juan Esteban Montero, a member of the Radical Party, was proclaimed president by Congress after Ibanez’s designated replacement also resigned.

Attributions

• Chile’s Presidential Era
  • “Trade barrier.” https://en.wikipedia.org/wiki/Trade_barrier. Wikipedia CC BY-SA 3.0.
  • “Presidential Republic (1925-73).” https://en.wikipedia.org/wiki/Presidential_Republic_(1925%E2%80%9373). Wikipedia CC BY-SA 3.0.
  • “History of Chile.” https://en.wikipedia.org/wiki/History_of_Chile. Wikipedia CC BY-SA 3.0.
  • “Carlos_IbaC3B1ez_del_Campo_1927.jpg.” https://commons.wikimedia.org/wiki/File:Carlos_Iba%C3%B1ez_del_Campo_1927.jpg. Wikimedia Commons Public domain.
  • “Alessandri_Ulk_28193229.jpg.” https://commons.wikimedia.org/wiki/File:Alessandri_Ulk_(1932).jpg. Wikimedia Commons Public domain.