Government Junta of Chile (1932)

Government Junta of Chile (June 4, 1932 - July 8, 1932) (also known as the Government Junta of Socialist Republic or Socialist Junta), was a political structure established during the anarchy (1931 - 1932) that followed the resignation of President Carlos Ibáñez del Campo. The Socialist Republic of Chile ended with the election of Arturo Alessandri as new president of Chile.

On July 26, 1931, President Carlos Ibáñez del Campo resigned, following the economic crisis caused by the market crash of 1929. The office was assumed by the president of the Senate, Pedro Opazo Letelier, who promptly himself resigned (the very next morning) after naming Juan Esteban Montero as his successor. Montero, as a way out of the political impasse, immediately called for presidential elections. In the meanwhile he assumed as Vice President. Since Montero was constitutionally banned from standing as a candidate while still in office, as a way out of the political impasse, and in order to qualify, he resigned his vice-presidency effective on August 20, 1931. The position was assumed by Manuel Trucco as Vice President.

The presidential elections finally took place on October 4, 1931, with Juan Esteban Montero as the clear winner. He took over again in the midst of a political and economic chaos. His program called for the implementation of an austerity program that involved the reduction of public expenditures and public salaries, a downsizing of the public administration and an increase of the foreign debt. Notwithstanding these harsh measures, the depreciation of the currency continued, and inflation soared while the Central Bank reserves were at an all-time low. This economic program only managed to cause widespread discontent, while in no way improving the economy, and in turn led to his downfall.

There were three principal groups of critics against Montero's policies: one headed by journalist Carlos Dávila, another (socialist) headed by Air Commodore Marmaduque Grove, and the third, known as the NAP (New Public Association) headed by Eugenio Matte (of socialist orientation also.) On June 4, 1932, the Air Force, under the leadership of Commodore Grove, rebelled against the government, causing the immediate resignation of President Montero, and the proclamation of the Socialist Republic of Chile. The executive power was vested in a Government Junta made up of General Arturo Puga (in representation of the military party), Carlos Dávila and Eugenio Matte.

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