In studying the development of the financial sector at the turn of the century in Peru, Alfonso Quiroz fills a huge gap for that country as well as the rest of Latin America. He provides a general survey of banking institutions, along with a detailed case study of the Banco del Perú y Londres. Quiroz furnishes abundant information by types of institutions (commercial banks, mortgage houses, insurance companies, etc.), by chronological cycles, and by groups of financiers (especially domestic vs. foreign). Through an analysis of the interest-group politics behind financial trends, he also contributes valuable insights on economic elites in the era.

This book’s central concern is the role of banking institutions as financial intermediaries between the export sector and the national market. Quiroz rejects culturalist or dependency interpretations of retrograde national capitalists. Instead, he concludes that these local financiers functioned dynamically and effectively. Their investments contributed both to national growth and to the consolidation of the economic power of the oligarchy.

This thorough, revisionist economic history rests on stunning archival research in Peru, England, France, and the United States. In particular, the author uncovered extraordinary primary documents—normally kept secret—on the Banco del Perú y Londres. Quiroz weaves those materials into solid descriptions and interpretations. Although his topic does not lend itself to high drama and scintillating prose, his presentation is crisp and convincing. This hook will stand for some time as a fine, original contribution on a vital but neglected subject.