BEAZIL. 



The port of Santos, which is the only port 

 of foreign trade allowed to the province of Sao 

 Paulo, rose in 1868 to the fourth rank as re- 

 gards exportation, being exceeded only by Eio 

 Janeiro, Bahia, and Pernambuco. In imports 

 it would have the same rank, instead of the 

 seventh, if it were not that six-sevenths of its 

 imports of foreign goods come from Eio Ja- 

 neiro, where the duties are paid, the bonded 

 system not having been adopted in Brazil as 

 yet. In the financial year of 1866-'67 the com- 

 merce of the port was as follows : 



Exports of produce $3,057,000 



Exports of produce coastwise 2,900,000 



Exports of foreign goods coastwise. . . 30,085 



Imports from abroad, direct 773,380 



Imports from abroad, coastwise 4,477,680 



Imports of produce coastwise 696,000 



Total $11,934,145 



The duties on these exports and imports 

 amounted to $490,000. 



The General Assembly of Brazil was opened 

 by the Emperor, on May 9th. The principal 

 points of the home and foreign policy of the 

 empire were thus referred to in the speech 

 from the throne : , 



Public tranquillity has been maintained throughout 

 the empire, an evident proof of the deep love of the 

 people for the institutions which govern us. Brazil 

 is at peace with the foreign powers, and seeks to cul- 

 tivate their good relations. The war, to which we 

 were provoked by the President of the Eepublic of 

 Paraguay} is not yet ended. Since the successes an- 

 nounced in the speech with which I closed the legis- 

 lative session of last year, glorious and important 

 deeds, such as Potreira Ovelha, Tayi, the defence of 

 Tuyuty, the passage of Humaita, and the taking of 

 Estabelecimento, and also the repulse of the boarding 

 of .the iron-clads, and the attack and occupation or 

 Curupaity, and of a great part of the enemy's lines, 

 have proved still more the value of our sea and land 

 forces and those of pur allies, and promise a brief and 

 honorable termination to the war. I have again the 

 pleasure to acknowledge that the Government has 

 been aided by every Brazilian in the defending of the 

 national honor, outraged by the President of Para- 

 guay. 



I feel deep sorrow in telling you that small-pox 

 caused so considerable losses to the expeditionary 

 column from the capital of Matto Grosso as to force it 

 to retreat, and that the disease reaped a harvest of very 

 many lives in that city and its neighborhood. The 

 retreat of the column was signalized by the brilliant 

 feat of Alegre, showing that the diminished number 

 of Brazilians fighting in that province a province 

 well worthy of respect for its constancy in adversity 

 make up bv courage and devotion for what is want- 

 ing^to them in material resources. Cholera morbus, 

 which, a short time ago, unhappily desolated Monte- 

 video^and the Argentine Republic, likewise made vic- 

 tims in our transports and stations, and some cases 

 occurred also in our army. This plague reappeared 

 at places in some of our provinces, but, thanks to 

 Divine Providence, did not spread, and was in gen- 



eral of a mild character, the public health returning 

 in a little time to a satisfactory condition. 



The Government of the United States of America 

 again offered its gracious mediation for the reestab- 

 lishment of peace with Paraguay. While thanking 

 that nation, the Government of Brazil declared, how- 

 ever, in agreement with the allied republics, that the 

 same reasons existing, strengthened by the late tri- 

 umphs, which prevented acceptance of the first offer, 

 a different procedure could not now be taken. 



The empire celebrated with Bolivia, on the 25th 

 of March, 1867, a treaty of friendship, boundaries, 

 navigation, commerce, and extradition. 



An agreement as to the meaning of the 9th article 

 of the consular convention with Switzerland has been 

 signed at Berne, with the purpose of preventing any 

 dispute regarding the collection, administration, and 

 liquidation of inheritances. 



"With the product of the new taxes the revenue of 

 the empire exceeds the ordinary expenditure, and 

 the estimates show a surplus. Notwithstanding this, 

 economy is an unavoidable necessity, so much the 

 more as the exigencies of the war require extraordi- 

 nary expenditures, for which I hope you will empower 

 the Government. The development of education and 

 public instruction should be one of the principal ob- 

 jects of your watchfulness. 



The municipal institution requires a reform based 

 on the dictates of experience. The law of elections 

 urgently demands a modification, in order that it may 

 assure the liberty of vote. A law of recruitment and 

 a military penal and practice code continue to be 

 much-felt wants in our legislation, as it becomes in- 

 dispensable to reform the law of December 3, 1841, 

 of the national guard. Immigration calls for special 

 solicitude, and the means of facile communications 

 are equally worthy of particular care. The servile 

 element has been an object of assiduous study, and 

 at a convenient moment the Government will submit 

 a suitable bill for your wisdom. 



On July llth, a difference occurred between 

 the Emperor and the (Liberal) Zacharias min- 

 istry upon the question of the Emperor's selec- 

 tion of a Conservative instead of a Liberal as 

 senator for the province of Eio Grande de 

 Norte ; the ministry resolved to resign, and, as 

 it persisted in its determination, the resigna- 

 tion was finally accepted upon the 14th. The 

 Emperor then instructed the Visconde de Itabo- 

 rahy, Conservative, to organize a ministry, and 

 on the 16th the decrees of appointment were 

 signed. (The names of the ministers have been 

 given above.) On the 17th the programme of 

 the new ministry was declared, acknowledging 

 the need of some reforms, but postponing their 

 consideration, and asking the Chamber of 

 Deputies to proceed at once to vote the sup- 

 plies, indispensable in the present condition of 

 the Treasury. But a vote of want of confi- 

 dence was at once proposed by Senhor Jos6 

 Bonifacio, and, after a short debate, in which 

 the ministry declared that it would accept the 

 motion as equivalent to a refusal to give supplies, 

 it was carried in the same session by 85 to 10, 

 all the Liberals uniting against the ministry. 

 On Saturday, the 18th, the decree of dissolu- 

 tion was signed, and on Monday the Chamber 

 of Deputies was formally dissolved. The new 

 ministry dismissed all the Presidents (Govern- 

 ors) of States, Vice-Presidents, chiefs of po- 

 lice, and, in general, all public officers belong- 

 ing to the Liberal party. Extraordinary efforts 

 were made by the new ministry to carry the 



