The final decades of the nineteenth century were marked by diplomatic confrontations between Chile and the United States. In 1891 the killing of US Navy sailors in a riot in Valparaíso threatened to provoke armed conflict, an event known as the Baltimore Crisis. This article investigates how William Russell Grace, the head of a merchant firm based in New York, played a central role in negotiating between Chile and the United States. By placing his activities in a transnational framework, Grace responded to the demands of multiple nation-states in the Americas. Observing changes in Grace's transnational economic infrastructure can help to identify larger long-term shifts in diplomacy and power on South America's Pacific coast in the late nineteenth century, especially Chile's emergence as a regional hegemon. The actions of Grace also raise larger questions regarding the power of business in the Americas in the late nineteenth century, especially with regard to growing US interests in the region.
