New York Paper February, 1918 - The Chilean Nitrate Industry (with Discussion)

There are few natural monopolies comparable with the nitrate industry. Perhaps the only other one is, curiously enough, also an essentia1 fertilizer material, viz., potash, of which the Germans have heretofore held practically a monopoly due to the existence in their territory of the most important known deposits of potash salts. And although nitrates in minute amounts are found in many desert regions, the only deposits capable of being worked commercially exist in Chile. Combined nitrogen in the oxidized form is an essential for plant life. Nature provides it mainly through the agency of nitrogen-fixing bacteria. But where lands are cropped artificially this supply is too small, and gradually the nitrogen supply becomes exhausted. In order to continue farming, it is necessary to furnish a supply of nitrogenous plant food, and this is done by putting on various substances containing combined nitrogen. These consist of various animal wastes, ammonium sulphate, the ammonia of which is obtained in the destructive distillation of coal, and Chile saltpeter. The latter is immediately available as a plant food, the nitrogen being in the required form. The other substances must oxidize before they are available. Resides its use as a fertilizer, Chile saltpeter is the source from which the bulk of the nitric acid of commerce is derived. The use of nitric acid in the manufacture of almost all modern explosives is, of course, well known. Importance of the Nitrate Industry Chilean nitrate, the existence of which was first mentioned in 1809, is said to have been first exported in 1830. Only a few thousand tons per annum were exported for some years, but the amount gradually increased until, in 1879, when the Chile-Peruvian war began, the export amounted to about 300,000 tons. This nitrate was largely produced from the Province of Tarapaca, until then, Peruvian territory. By the terms of peace with Peru in 1884, this province, as well as Tacna, became Chilean. The Bolivian Province of Antofagasta was also acquired as a result of this war, and thus Chile, with the deposits in her own territory, acquired control of the whole supply of nitrate. At the present time, exports are approximately 3,000,000 metric tons per annum,. having a