572 



POETUGAL. 



cial difficulties. There was, in the beginning of 

 1869, a large deficit in the annual budget. The 

 King himself, in his speech to the Cortes, on 

 January 2d, admitted that the difficulties could 

 only be overcome by good order in the admin- 

 istration, by diminution in the expenditure, 

 and by self-sacrifice. It is stated that, for ten 

 years past, Portugal has been spending 4,- 

 200,000 a year on an income of 3,500,000 a 

 year. The deficit in 1866-'6T was 1,117,482 ; 

 in 1867-'68 it was 1,298,596. Portugal has 

 not had a budget without a deficit for thirty 

 years. The expenditure has increased every 

 year during that period ; the revenue has been 

 stationary during that time. The public debt 

 has increased from 20,000,000 in 1854, to 47,- 

 000,000 in 1867. In addition to this, the Gov- 

 ernment had embroiled itself with foreign 

 capitalists, who had carried out some of the 

 greatest public enterprises in Portugal. The 

 Government had seized the Southeastern Kail- 

 way of Portugal, which measure chiefly affected 

 British interests ; but disputes also took place 

 in reference to the Northern Eailway, con- 

 structed almost exclusively by French capital. 

 In both cases the capital yielded very small 

 returns, and, as a natural consequence, great 

 dissatisfaction and mutual recrimination en- 

 sued. This went to such an extent as to as- 

 sume a national character on the part of the 

 Portuguese, and successive ministries, although 

 desirous of settling the pending disputes, were 

 prevented by the decided opposition of the 

 Cortes. The question of the Southeastern 

 Eailway was the cause of the fall of two min- 

 istries, the Cortes not having ratified the terms 

 agreed to by the Government ; the dispute lay 

 in reality with the nation, who considered that 

 their honor was involved. This dispute was, 

 however, at last settled. The Government took 

 possession of the railway in default of completion 

 of the company's obligations, as it states, and 

 assigned a sum of about 520,000 as compensa- 

 tion ; not, however, as a right, but in equity, 

 and subject to the consent of the Cortes. The 

 public feeling was very much excited against 

 the Southeastern Company of Portugal, and a 

 large portion of the nation repeatedly urged 

 confiscation. The trade of Portugal had fallen 

 off greatly during the past two years, and is 

 said to have been influenced unfavorably by 

 the introduction of the paper currency in 

 Brazil, where a large amount of Portuguese 

 capital is retained, waiting for a favorable turn 

 in the exchange. 



The Cortes was opened on the 2d of January. 

 The candidate of the opposition, Mendez Leal, 

 being chosen president, the ministers resigned, 

 and their resignation was accepted by the 

 king. But the friends of the ministry mani- 

 fested their adhesion to it so energetically, that 

 the officers of the army and navy assured the 

 king he could rely upon them and fearlessly 

 choose his ministers. All the officers of the 

 Parliament resigned, a motion against their 

 election having been made by forty-four depu- 



ties. In the session of January 21st, the depu- 

 ties were informed that the King had resolved 

 upon retaining his Cabinet. A royal decree 

 dissolved the House of Deputies, and ordered 

 a new session to begin on May 4th. To alle- 

 viate the financial pressure, the King assigned 

 to the Treasury a part of the income of his 

 family, by the following letter to the Marquis 

 da Bandeira, the Prime Minister : 



MY DEAB MARQUIS : The late administrative crisis 

 "being at an end, and while we are still occupied with 

 the financial question, which rightly deserves our at- 

 tention, I hasten to acquaint you, as President of the 

 Council of Ministers, that the Queen, myself, and my 

 sons, are desirous to be the first to contribute as 

 much as is in our power to diminish the heavy bur- 

 dens of the Treasury. The Queen proposes to cede 

 the tenth part, myself 36,000,000 reis, and my sons 

 4,000,000 reis, from our annual civil lists, for the 

 necessities of the state during the next financial 

 year. I assure you that, whatever the circumstances, 

 the country will find me and the royal family always 

 ready to perform our share in bearing the burdens of 

 the state. 



Believe me to be, yours, affectionately, 



LtflZ. 



Political discontent spread, however, and 

 culminated in serious disorders in the capital. 

 The financial measures were not well received 

 by the Chambers. To obviate the threatening 

 outbreak of general discontent, a new ministry 

 was formed, in August, under the Duke of 

 Louie" , as President of the Council and Minister 

 of the Interior, whose accession was considered 

 a pledge for an honorable arrangement with 

 the foreign capitalists. Political agitation con- 

 tinued, however. In December, a military 

 movement was set on foot by the Duke of 

 Saldanha, and the public peace was disturbed 

 at Oporto. In the night of December 10th, pla- 

 cards were posted in the streets of Lisbon, sum- 

 moning the people to arms in the name of a 

 republic. On the next day numerous arrests 

 were made ; but the excitement again passed 

 away. The General Cortes assembling on Jan- 

 nary 5, 1870, was opened by King Luiz, who, 

 in his speech, referred with gratification to the 

 state of tranquillity which now existed at 

 home and abroad, and promised to introduce 

 important measures of reform and economy. 



Concerning its colonial policy, the Portu- 

 guese Government informed the powers of 

 Europe of its determination to abolish com- 

 pletely the slave-trade in all its colonies, which 

 was accomplished by a royal decree on Feb- 

 ruary 26, 1869. The Portuguese Governor of 

 Macao issued, in regard to the Coolie trade, the 

 following proclamation : 



The Governor of the provinces of Macao and Timor 

 determines as follows : The Portuguese consul in 

 the port of Callao, Lima, having communicated to 

 this Government, by a dispatch dated the 2d of Au- 

 gust last, the horrible act committed by a farmer in 

 the suburbs of that city upon forty-eight Chinese im- 

 migrants who had been transported to that country 

 as laborers, by marking them with a red-hot iron, as 

 was formerly the custom with African slaves ; _and 

 that furthermore many laborers, or Chinese colonists, 

 were wandering about the streets of that city solicit- 

 ing the charity of the public, having been abandoned 



