82 



BRAZIL. 



visiting South American countries to study the 

 question of extending commercial intercourse with 

 the Mster republics came to Rio de Janeiro they were 

 warmly welcomed l>y delegates of the National Re- 

 publican party, who declared that one of the highest 

 aspirations of their party was the union of the na- 

 tions of the new continent as an absolutely neces- 

 sary barrier against the usurpation of European 

 tyranny, in the economical point of view as well as 

 the political. They expressed the hope that the 

 visiting commissioners would help to bring about,- 

 in a political way, the approximation of the two 

 greatest peoples of America by the realization of 

 mutual ideas and feelings, and, in an economical 

 point of view, the strengthening and aggrandize- 

 ment of fie industries of the New World by the 

 opening up within our own continent of new mar- 

 kets, enlarging reciprocally and increasingthe riches 

 of both countries, and emancipating them from 

 vexatious dependence on European markets and 

 capital. The purely Brazilian merchants are strongly 

 in favor of a renewal and development of reciproc- 

 ity with the United States. When President Moraes 

 retired on Nov. 11 from the active duties of his post 

 on account of illness, Vice-President Pereira, who 

 became acting President, announced that he would 

 pursue a truly American policy, not, however, for- 

 getting the duty of the republic to all foreigners 

 within its borders, or who have any connection with 

 the country. His chief desire, he declared, was to 

 discover a" solution of the financial crisis, and to 

 settle all diplomatic claims. The debts of the Fed- 

 eral Government are stated to amount -to 1,781,- 

 820,140 milreis. or 89,091,007 sterling. The foreign 

 loans foot up 34,656,800, not including 4,000,000 

 of obligations for the western mines taken over by 

 the Government. The internal debt in 1895 amount- 

 ed to 754,042,399 milreis, including a loan of 105,- 

 000,000 milreis issued in that year. There were be- 

 sides 215,111,964 milreis of treasury notes outstand- 

 ing and 355,173,310 of bank notes. The internal 

 loans pay from 4 to 6 per cent, interest in paper, 

 except 125,000,000 milreis bearing 4 per cent, inter- 

 est in gold. The rate of interest on the foreign 

 loans is 4 or 4J per cent, in gold. Their redemption 

 is gradually accomplished by means of a sinking 

 fund of 1 per cent, per annum, which is applied to 

 purchases of bonds in the open market when they are 

 quoted below par, and otherwise to paying off bonds 

 drawn by lot. Interest and amortization of the in- 

 ternal bonds are provided for by an annual vote of 

 Congress, the funds being intrusted to a sinking- 

 fund commission. The annual payments of in- 

 terest on foreign and internal loans, railroad guar- 

 antees, and pensions amount to more than 120,- 

 OOO.HOO milreis. The provinces had debts in 1888 

 amounting to 5:5,000,000 milreis. 



The two chief banks of issue, Banco de Brazil 

 and Banco do Republics, were consolidated in 1892 

 into the Banco da Republrca do Brazil, which be- 

 came responsible for the outstanding circulation, 

 the Government also guaranteeing the ultimate re- 

 demption of the notes. The capital of the new 

 bank is 190,000,000 milreis. The bank notes in 

 circulation in .March. is<r>. amounted to 340,714.000 

 milreis. The issue^ of Government paper money 

 increased from 215,111.964 milreis in ls<t2 to '.'s.V- 

 744.750 milreis in 1N!:J and 367,:559.000 milreis in 

 March, isit.l including 83,000,000 milreis issued in 

 (oiiM-(|ii..|i<-c of the recent naval revolt and 125,- 

 OOO.i 100 milrei> advanced to the banks. There was 

 ly any money but paper in the country, and 

 the value of the paper milreis was only 20i cents in 

 United State> currency, whereas the gold milreis is 

 worth 54 ij a Qte. It was stipulated when the new 

 internal loan of 100,000,000 milreis was authorized 

 in 1S!)5 that half the proceeds should be devoted to 



the gradual redemption of paper money, which 

 should begin on April 30, 1895. The decree of 

 March 14, 1895, announced that 20,000,000 milreis 

 would be withdrawn at once. 



The Army and Navy. A law of universal lia- 

 bility to military service has existed since 1S75. 

 The active army in 1895 numbered about 4,000 

 officers and 25,000 men. There is a gendarmerie 

 of 20,000 men. 



The Brazilian navy contains the seagoing turret 

 ship " Riachuelo '' of 5.700 tons ; the " 24 de Maio," 

 formerly called the "Aquidaban" ; the coast guard 

 "Bahia"; 5 river monitors; the cruiser "Almi- 

 rante Tamandare," of 4,465 tons, built in Brazil in 

 1890 and provided with a strong quick-firing arma- 

 ment; the new cruiser "Benjamin Constant," of 

 2,750 tons; the torpedo cruiser " Aurora," capable 

 of making 18 knots ; 15 small gunboats ; and a tor- 

 pedo flotilla consisting of 8 first-class and 6 third- 

 class boats, besides small craft. Congress voted 

 18,000,000 milreis for additional vessels to be fur- 

 nished during the three years ending with 1897. 

 Accordingly. 3 powerful cruisers have been ordered 

 from the Armstrongs of Elswick, 2 ironclad coast 

 guards to be built in France, and 3 torpedo-catch- 

 ers in Germany. 



Commerce and Production. Though only a 

 minute part of the fertile land in Brazil is culti- 

 vated, that country supplies a large share of the 

 world's requirements of coffee and considerable 

 quantities of sugar, cotton, and tobacco. The coffee 

 crop of Santos in 1895 was 4,010,249 bags and of 

 the Rio de Janeiro district 2,750.000 bags, while in 

 other districts over 2,000.000 bags were marketed. 

 The sugar crop of Pernambuco in 1894 was 185,- 

 000,000 kilos. An important cattle-raising interest 

 has been developed in Rio Grande do Sul. where 

 280,000 head were slaughtered in 1895. Foreign 

 settlers have established in the same State large 

 fruit canneries, tanneries, and breweries. The 

 production of rum and alcohol is now consid- 

 erable. The immense iron deposits of Brazil can 

 not be worked for lack of coal. Gold mines are 

 operated in Minas Geraes by English companies. 

 Diamonds are mined still. In the Amazon district 

 great quantities of rubber are obtained, but other 

 forest resources remain undeveloped as yet. The 

 total value of the imports in 1890 was 260,100,000 

 milreis, and of the exports 317,822,000 milreis. In 

 1894 the exports amounted to 601,046,000 milreis, 

 of which 218,098.000 milreis represent shipments 

 from the port of Santos, 50,976,000 milreis exports 

 from the ports of Rio Grande do Sul, 148,921,000 

 milreis shipments from Rio de Janeiro, 44,836,000 

 milreis exports from Manaos, and 41,629,000 milreis 

 the products sent from Belem. The coffee ship- 

 ments from Rio de Janeiro were valued at 103,666,- 

 000 milreis, consisting of 2.662,520 bags of 60 kilos, 

 while from Santos 1,772,679 bags were sent, only half 

 as much as in the preceding year. From Para Ifl,- 



472.010 kilos of rubber were sent, against 19,144,- 

 157 kilos in 1893. The export of cacao from the 

 same State was 3,434,656 kilos, against 4.597,189 

 kilos in 1893. Manaos exported 4,377.566 kilos of 

 rubber in 1894. The exports of sugar from Per- 

 nambuco in 1894 were valued at 39,052.780 milreis : 

 of cotton, 11,469,115 milreis. The chief exports 

 from Rio Grande do Sul in 1894 were 20,831,226 

 kilos of dried beef, 3,552,375 kilos of tallow, and 



496.011 hides. 



Navigation. During 1893 there were entered at 

 the port of Rio de Janeiro 1,397 vessels, of 2.062,294 

 tons, and cleared 1,218 vessels, of 1,924,449 tons, 

 counting only vessels engaged in ocean commerce. 

 Of these nearly half were British. The mercantile 

 marine in 1894 comprised 164 steamers, of 110,068 

 tons, and 126 sailing vessels, of 35,908 tons, not 



