Hams are a principle article among their exports, as hogs are the most numerous animals in Chiloe, where they find their own food in the woods. Few sheep are kept, yet there are sufficient to furnish wool to give employment to the women. From this they manufacture ponchos, two of which, give sufficient work to a woman for a whole year, as they work without a loom. The warp is stretched between a set of pegs, and they weave in the woof with their fingers, yet make the work remarkably fine, strong, and beautiful. They make also a smaller kind, called bordillos, which are the ordinary dress of the negroes at Lima. Besides these, they manufacture blankets and rugs, or coverlets for beds, and linen cloth; which last is woven in looms.
In summer, when the vessels arrive from Callao, San Carlos is like a fair, as this is the only opportunity enjoyed by the Chilotans to get supplied with any thing which is not the produce of their own country, or to dispose of any portion of their surplus produce. As they have no money or circulating medium of commerce, the whole trade is carried on by means of barter, which would leave the islanders at the mercy of the merchants from Lima, but for the interference of the government. On the arrival of the first ship of the season, the cabildo or municipal magistracy of San Carlos, fixes a money price at which every thing is to be rated on both sides; which means of regulating the market seems absolutely necessary, as otherwise the Chilotans in buying would be obliged to give any price demanded by the seller, and in selling would have to take any price offered. Still it would be much for their advantage to export their own commodities; but the whole archipelago does not contain a single vessel large enough to make a voyage to Peru or even to Chili. Formerly the soldiers who were in garrison in this province used to receive their pay in clothes and other articles of which they might be in want; but they were ordered by a late regulation to be paid in specie; and if this be continued it must occasion an important change in the commercial situation of Chiloe, by introducing a circulating medium. In San Carlos there is a garrison of regular troops, consisting of 33 artillerymen, 58 dragoons, and 53 infantry. The militia of the archipelago consists of 1569 men, including officers; which have to do garrison duty, but receive no pay or rations, having to serve entirely at their own expence.