The Prieto Era: Economic Reforms and Political Consolidation (1831-1841)

Economic Reforms Under Manuel Rengifo (1830s)

During the government of President Prieto, Finance Minister Manuel Rengifo took major steps to revive the economy. His reforms included:

• Eliminating taxes on farming and manufacturing inputs.
• Reopening warehouses in Valparaíso to encourage foreign trade.
• Setting new tariffs for imports and exports.
• Liberalizing certain goods (exempting them from taxes), such as machinery.

This liberalization drove not only material development but also intellectual progress, as the availability of machinery allowed for the production and printing of books and newspapers.

Moreover, with the discovery of the Chañarcillo silver mine in 1832, the government could lighten the national debt and fund infrastructure projects, including the construction of the railroad, among other advances.

Diego Portales: Organizer of the Republic

Diego Portales (1793–1837), Minister of War and Interior under the Prieto government, became the primary organizer of the Republic, basing his political vision partly on Britain's system.

Portales' Vision for the State

Portales believed it was vitally important to eradicate the pronouncements and riots that had plagued the previous decade. His goal was to establish a strong, respected, and respectable government—a centralized authority superior to political parties and personal prestige.

Following the expulsion of Ramón Freire, Portales focused on strengthening state institutions. He:

• Rearranged the Military School.
• Created the Civic Guard (composed of civilians), which became a crucial source of support for the government.

Intellectual and Scientific Influence in the 1830s

The Prieto government actively recruited several foreign scientists and educators to contribute to national development. Notable figures included:

• Claudio Gay (French naturalist)
• Doctors Guillermo Blest (English) and Lorenzo Sazie (French)
• Naturalists Rodulfo A. Philippi (German) and Ignacio Domeyko (Polish)
• Armando Pissis (French geologist)

Simultaneously, the country became a refuge for many young intellectuals steeped in European liberal romanticism who were exiled from their homelands. Their presence allowed them to pursue their creative capacity in this country of adoption, significantly contributing to the rebirth of national culture.

Customs Law and Trade Modernization (1834)

The deposits (warehouses) of Valparaíso were reactivated in 1834, becoming a crucial element for revitalizing trade. Minister Rengifo regulated the activity of these deposits, eliminating transit fees and other taxes.

In this context of development, customs law and trade regulations were modernized. The new Customs Law, enacted in 1834, was designed to stimulate scientific, cultural, and technological progress by exempting key items from placement fees. These elements contributing to national progress included:

• Machinery and tools
• Mechanical instruments
• Books and technical manuals
• Stationery, among others.