Chilean peso (1817–1960)

The Chilean peso (symbol: $) was the legal tender of Chile from 1817 until 1960, when it was replaced by the escudo, a currency that was itself replaced in 1975 by a new peso.^[1]

Chilean peso

peso chileno (Spanish)
Unit
Symbol	$‎
Denominations
Superunit
10	cóndor
Subunit
1⁄100	centavo
Demographics
Date of introduction	1817
Replaced	Spanish real
Date of withdrawal	1 January 1960
Replaced by	Chilean escudo
User(s)	Chile
Issuance
Central bank	Banco Central de Chile (1925-1960)
Website	www.bcentral.cl
Mint	Casa de Moneda
Website	www.cmoneda.cl
This infobox shows the latest status before this currency was rendered obsolete.

It was established in 1817, together with the country's independence, and in 1851 the decimal system was established in the peso, which was made up of 100 centavos. It remained legal tender in Chile until 1 January 1960, when it was replaced by the escudo.^[2] It was manufactured by the Mint of Chile (1743) and regulated by the Central Bank of Chile (1925), in charge of controlling the amount of money in circulation.^[3]

History

Although the adoption of the peso to replace the colonial real dates back to 1817, with the beginning of the New Fatherland period, the Spanish currency system continued to be used, in which 8 reales were equal to 1 peso and 2 pesos to 1 escudo. In 1835, copper coins denominated in centavos were introduced, but it was not until 1851 that the real and escudo denominations ceased to be issued and new issues in centavos and diezmos (worth 10 centavos) began. The custom of using the old Spanish monetary system persisted in Chile until January 9, 1851, when the decimal system was adopted by law, in which 1 peso was made up of 10 diezmos or 100 centavos.^[4]

Also in 1851, the peso was set at 5 French francs, or 22.5 grams of pure silver. However, gold coins were issued to a different standard than in France, with 1 peso equal to 1.37 grams of gold (5 francs equaled 1.45 grams of gold). A gold standard was adopted in 1885, pegging the peso to the British pound sterling at a rate of 13+1⁄3 pesos = 1 pound (1 peso = 1 shilling and 6 pence); this was reduced in 1926 to 40 pesos = 1 pound (1 peso = 6 pence).

In 1925, money circulation was controlled by the newly created Central Bank of Chile. The Monetary Law, published in the Official Gazette on September 16 of that year, established the peso as containing 6 pence of gold and that 10 peso units would constitute "one condor"; It was also established that every coin of 10 pesos or more would have its value in pesos stamped in letters and numbers, and its equivalent in condors in smaller letters.^[5][6]

Beginning in 1932, the value of the peso began to gradually decline, and by the 1940s, inflation began to increase rapidly; as a result, Law 11885 of September 15, 1955 established that all obligations would be paid in whole pesos, without cents.^[7]

In the context of a policy of national economic sanitation and inflationary control undertaken by the government of Jorge Alessandri, between 1960 and 1975 the peso was replaced by the escudo (Eº).^[8] The conversion rate was 1000 pesos for 1 escudo.^[2]

Coins

Between 1817 and 1851, silver coins were issued in denominations of 1⁄4, 1⁄2, 1, and 2 reales and 1 peso (also denominated 8 reales), with gold coins for 1, 2, 4, and 8 escudos. In 1835, copper 1⁄2 and 1 centavo coins were issued. A full decimal coinage was introduced between 1851 and 1853, consisting of copper 1⁄2 and 1 centavo, silver 1⁄2 and 1 décimo (5 and 10 centavos), 20 and 50 centavos, and 1 peso, and gold 5 and 10 pesos. In 1860, gold 1 peso coins were introduced, followed by cupronickel 1⁄2, 1 and 2 centavos between 1870 and 1871. Copper coins for these denominations were reintroduced between 1878 and 1883, with copper 2+1⁄2 centavos added in 1886. A new gold coinage was introduced in 1895, reflecting the lower gold standard, with coins for 2, 5, 10 and 20 pesos. In 1896, the 1⁄2 and 1 décimo were replaced by 5 and 10 centavo coins.^[9]

In 1907, a short-lived, silver 40 centavo coin was introduced following cessation of production of the 50 centavo coin. In 1919, the last of the copper coins (1 and 2 centavos) were issued. The following year, cupronickel replaced silver in the 5, 10 and 20 centavo coins. A final gold coinage was introduced in 1926, in denominations of 20, 50 and 100 pesos. In 1927, silver 2 and 5 peso coins were issued. Cupronickel 1 peso coins were introduced in 1933, replacing the last of the silver coins. In 1942, copper 20 and 50 centavos and 1 peso coins were introduced. The last coins of the first peso were issued between 1954 and 1959. These were aluminum 1, 5 and 10 pesos.^[9]

Gold bullion coins with nominals in 100 pesos were minted between 1932 and 1980 (i.e. they survived into the periods of two later currencies).^[10] In addition, there was a special issue of gold coins (100, 200 and 500 pesos) in 1968.^[11][12]

Coins issued in values of 5 and 10 pesos from 1956 onwards, as well as bullion coins of 20, 50 and 100 pesos issued from 1925 to 1980 (exceeding the validity of this monetary standard by 20 years) also bring such equivalence in condors, being 10 pesos per condor.^[11]

Banknotes

The first Chilean paper money was issued between 1840 and 1844 by the treasury of the province of Valdivia, in denominations of 4 and 8 reales. In the 1870s, a number of private banks began issuing paper money, including the Banco Agrícola, the Banco de la Alianza, the Banco de Concepción, the Banco Consolidado de Chile, the Banco de A. Edwards y Cía., the Banco de Escobar, Ossa y Cía., the Banco Mobiliario, the Banco Nacional de Chile, the Banco del Pobre, the Banco Sud Americano, the Banco del Sur, the Banco de la Unión, and the Banco de Valparaíso. Others followed in the 1880s and 1890s. Denominations included 1, 2, 5, 10, 20, 50, 100, and 500 pesos. One bank, the Banco de A. Edwards y Cía., also issued notes denominated in pounds sterling (libra esterlina).^[12]

In 1881, the government issued paper money convertible into silver or gold, in denominations of 1, 2, 5, 10, 20, 50, 100, and 1000 pesos. 50 centavo notes were added in 1891 and 500 pesos in 1912. In 1898, provisional issues were made by the government, consisting of private bank notes overprinted with the words "Emisión Fiscal". This marked the end of the production of private paper money.^[12]

In 1925, the Banco Central de Chile began issuing notes. The first, in denominations of 5, 10, 50, 100, and 1000 pesos, were overprints on government notes. In 1927, notes marked as "Billete Provisional" were issued in denominations of 5, 10, 50, 100, 500, and 1000 pesos. Regular were introduced between 1931 and 1933, in denominations of 1, 5, 10, 20, 50, 100, 500, 1000, 5000, and 10,000 pesos. The 1 and 20 peso notes stopped production in 1943 and 1947, respectively.^[13] The remaining denominations continued production until 1959, with a 50,000-peso note added in 1958.^[12]

Notes issued after 1925 show the equivalence in condors, which was at the rate of 10 pesos per condor. The following are the banknotes issued since 1932:^[14]

Denomination	Issue	Color	Dimensions	Obverse
				Back
1 peso 1⁄10 cóndor (provisional)	1932-1942	Blue/yellow	120 × 60 mm	Denomination and Central Bank of Chile seal.
				Denomination and letter from the series.
	1943	Blue/yellow	88 × 51 mm	Denomination and Central Bank of Chile seal.
				Denomination and letter from the series.
5 pesos ½ cóndor	1932-1959	Blue	145 × 70 mm	Portrait of Bernardo O'Higgins.
				Denomination.
10 pesos 1 cóndor	1932-1959	Reddish brown	145 × 70 mm	Portrait of Manuel Bulnes.
				Denomination.
20 pesos 2 cóndores	1939-1947	Brown	145 × 70 mm	Portrait of Pedro de Valdivia.
				View of Santa Lucía Hill park.
50 pesos 5 cóndores	1932-1959	Green	145 × 70 mm	Portrait of Aníbal Pinto.
				Denomination.
100 pesos 10 cóndores	1933-1959	Red	145 × 70 mm	Portrait of Arturo Prat.
				Denomination.
500 pesos 50 cóndores	1933-1945	Yellow/brown	180 × 80 mm	Portrait of Manuel Montt.
				Llegada de Almagro a Chile ("Almagro arrives in Chile"), by Pedro Subercaseaux.
	1947-1959	Blue	145 × 70 mm	Portrait of Manuel Montt.
				Llegada de Almagro a Chile ("Almagro arrives in Chile"), by Pedro Subercaseaux.
1000 pesos 100 cóndores	1933-1947	Brown	180 × 80 mm	Portrait of Manuel Blanco Encalada.
				Fundación de Santiago ("Foundation of Santiago"), by Pedro Lira.
	1947-1959	Black	145 × 70 mm	Portrait of Manuel Blanco Encalada.
				Fundación de Santiago ("Foundation of Santiago"), by Pedro Lira.
5000 pesos 500 cóndores	1932	Orange	200 × 105 mm	Portrait of Manuel Antonio Tocornal.
				Denomination
	1940	Blue	200 × 105 mm	Portrait of Manuel Antonio Tocornal.
				Carga de O'Higgins en la Batalla de Rancagua ("O'Higgins' charge at the Battle of Rancagua"), by Pedro Subercaseaux.
	1947-1959	Brown	175 × 85 mm	Portrait of Manuel Antonio Tocornal.
				Carga de O'Higgins en la Batalla de Rancagua ("O'Higgins' charge at the Battle of Rancagua"), by Pedro Subercaseaux.
10,000 pesos 1000 cóndores	1932	Green	200 × 105 mm	Portrait of José Manuel Balmaceda.
				Denomination
	1940	Brown	200 × 105 mm	Portrait of José Manuel Balmaceda.
				Abrazo de Maipú, by Pedro Subercaseaux.
	1947-1959[15]	Brown/gray	180 × 85 mm	Portrait of José Manuel Balmaceda.
				Abrazo de Maipú, by Pedro Subercaseaux.
50,000 pesos 5000 cóndores	1959	Green	180 × 85 mm	Portrait of Arturo Alessandri Palma.
				Frontispiece of Central Bank of Chile main building.

See also

• Economic history of Chile

References

1. "¿Desde cuándo el peso es la moneda nacional?". Comisión para el Mercado Financiero (in Spanish). Retrieved 29 March 2023.
2. Ministerio de Hacienda (6 April 1959). "Ley 13305, Reajusta las remuneraciones de todos los empleados que restan servicios en Chile, suplementa el presupuesto de la Nación, establece nueva unidad monetaria, concede facultades extraordinarias al presidente de la República y modifica las leyes que señala". LeyChile (in Spanish). Retrieved 28 August 2024.
3. Ministerio de Hacienda (10 October 1989). "Ley 18840, Ley Orgánica Constitucional del Banco Central de Chile". LeyChile (in Spanish). Retrieved 28 June 2024.
4. República de Chile (9 January 1851). "Ley S/N, Monedas". LeyChile (in Spanish). Retrieved 29 March 2023.
5. Ministerio de Hacienda (16 September 1925). "Decreto Ley 528". LeyChile (in Spanish). Retrieved 12 October 2023.
6. Carrasco, Camilo (2009). "Billetes y monedas emitidos por el Banco Central (1925-1964)" (PDF). Banco Central de Chile (in Spanish). Retrieved 26 November 2019.
7. Ministerio de Hacienda de Chile (15 September 1955). "Ley 11885, Fija normas para el pago de las obligaciones que indica". LeyChile (in Spanish). Retrieved 29 March 2023.
8. "A los 141 años muere el peso" (PDF). La Nación (in Spanish). 19 February 1959. p. 7. Retrieved 30 March 2023.
9. Fernando Guzmán Schiappacasse, Manuel Martínez Silva (October 1991). "Catálogo de monedas chilenas: colecciones numismáticas del Banco Central de Chile y Museo Histórico Nacional" (PDF). Banco Central de Chile (in Spanish). Retrieved 30 March 2023.
10. "100 Pesos, Chile". en.numista.com. Retrieved 2022-03-01.
11. Toro, Rafael (2021). "Catálogo de Monedas Chilenas" (PDF). Numismatica.cl (in Spanish). Retrieved 29 March 2023.
12. Juan Manuel Martínez, Lina Nagel Vega (2009). "Iconografía de monedas y billetes chilenos" (PDF). Banco Central de Chile (in Spanish). Retrieved 30 March 2023.
13. "La emisión de dinero en Chile: colección de monedas y billetes del Banco Central de Chile" (PDF). Banco Central de Chile (in Spanish). July 2005. Retrieved 30 March 2023.
14. "Catálogo de Billetes Chilenos". Numismatica.cl (in Spanish). Retrieved 29 March 2023.
15. "Nuevo billete de diez mil pesos" (PDF). La Nación (in Spanish). 11 December 1951. p. 1. Retrieved 4 June 2024.

Preceded by: Spanish real	Currency of Chile 1817 – 1960	Succeeded by: Chilean escudo Ratio: 1 escudo = 1000 pesos