BRAZIL. 



ART. 20. The Government of his Majesty the Em- 

 peror of Brazil may, by agreement with the repub- 

 lic of Paraguay,, keep in the territory of the repub- 

 lic, even after the date of the present treaty, what 

 part of his army he may consider necessary to the 

 proper execution of the agreements entered into. 



In a special convention will be fixed the number 

 of the forces, the time of their stay, the mode of sat- 

 isfyino' the cost incurred, and any other needful 

 conditions. 



ART. 21 provides for the mutual surrender of pris- 

 oners of war. 



ART. 22 provides for the surrender of all Brazilian 

 deserters, his imperial majesty promising not to 

 execute any of them. 



In the treaty of limits, article 1 declares that the 

 boundary between both states is : 



The bed of the Parana from the mouth of the 

 Iguassu to the Salto Grande das Sete Quedas. ^From 

 these falls the line runs along the highest divide of 

 the Serra de Maracajd to its termination ; thence, as 

 nearly as possible in a straight line, along the high- 

 est ground to the Serra Amambahy, following the 

 highest divide of the serra to the principal source of 

 the Apa, and down the river to its junction with the 

 Paraguay. 



All the streams flowing to the north and east be- 

 long to Brazil, and those to the south and west to 

 Paraguay. 



The island of Fecho dps Morros (in the Upper 

 Paraguay) belongs to Brazil. 



ART. 2 provides for the appointment,' within three 

 months after ratification, or a joint boundary com- 

 mission to mark the boundary where needed. 



A third treaty provides for the mutual extradition 

 of criminals not natives of the surrendering state, 

 and specifies the offences. Political offenders are ex- 

 empt from extradition. 



A fourth treaty, of friendship, commerce, and navi- 

 gation, equalizes the civil status of Brazilians and 

 Paraguayans respectively, with that of the citizens of 

 the other country. Free trade in national products 

 is to be allowedbetween Paraguay and Matto Grosso. 



On the 31st of March, their Majesties the 

 Emperor and Empress returned to the em- 

 pire, after an absence of ten months. In the 

 month of April, an epidemic fever, which had 

 been travelling along the Lower Amazon since 

 1858, extended its ravages until one-third of 

 the population of some towns was attacked ; 

 and in Maranhao the Berberi epidemic, which 

 made its appearance in 1871, continued, 

 though with less virulence, a change of air 

 being in most cases sufficient to bring a cure 

 or relief. At Parahiba, the yellow fever, 

 after having subsided, reappeared at the end 

 of March among the shipping. On shore per- 

 nicious fever was common. An unknown epi- 

 demic visited three towns, carrying off 13,000 

 out of 18,000 inhabitants. 



A new Cabinet was formed on the 20th of 

 April. The Chambers were reopened May 

 3d, on which occasion the Emperor, in his 

 speech, promised various reforms, especially 

 in the mode of elections, recruiting the army 

 and the National Guard. Senator Eibeiro da 

 Luz was appointed Minister of Justice on the 

 19th of the same month, and on the 21st the 

 Chamber of Deputies adopted, by 50 votes 

 against 49, a motion of the opposition. The 

 Emperor on the following day dissolved the 

 House, and ordered new elections for the 18th 

 of September. About the same time, the Rio 



Grande Hydraulic Company was chartered, 

 with a capital fixed at $200,000, and power to 

 raise it to $250,000. The object of the com- 

 pany is to supply the city of Kio Grande with 

 potable water. 



The traffic on the Sao Paulo Railway was 

 frequently interrupted by land-slides, which 

 seriously damaged the road. 



An insurrection of fifty slaves took place, 

 on a plantation some thirty miles from Rio de 

 Janeiro, whence a body of police was sent, 

 who succeeded in capturing one-half of the 

 number in two or three days, and the remain- 

 der in about a week. 



The elections for members of Congress be- 

 gan in August, and were attended with mnch 

 agitation and disorder, especially in the north- 

 ern provinces; the troops were called out, 

 and some bloodshed ensued. 



A decree was issued during the course of 

 the year, granting permission to the Presby- 

 terian congregation of Rio de Janeiro to in- 

 corporate and hold real estate, with demise to 

 the New York Presbyterian Missionary So- 

 ciety, in case of the dissolution of the congre- 

 gation. The decree was hailed with almost 

 universal approbation. 



A definite contract with the Brazilian Navi- 

 gation Company, for the transportation of the 

 northern mails, was signed on the 25th of Sep- 

 tember by the Director-General of Mails, and 

 by the representatives of the company. By 

 the terms of the contract, the headquarters of 

 the company were to be transferred from New 

 York to Rio de Janeiro. Half the capital has 

 been subscribed in the empire, and the vessels 

 fly the national flag ; so that, to all intents and 

 purposes, this enterprise is Brazilian. The 

 Beaton contract for the introduction of immi- 

 grants was assented to by the imperial Gov- 

 ernment, with some amendment, however; 

 the obligatory number of immigrants is re- 

 duced to 5,000, and the Coffee Estates Com- 

 pany, formed in London for carrying the con- 

 tract into effect, will now receive 6 per adult 

 on embarkation, and 120 milreis $60 on his 

 arrival in Brazil, together with free transport 

 on subsidized steamers and railways. The 

 company will likewise receive an annual bonus 

 of $15,000 for a term of five years. This con- 

 tract, by far the most liberal yet granted, 

 'proves how earnest the Brazilian Government 

 is, in its wish to secure foreign population. 

 The discovery of coal on the Amazon, near 

 the port of Manaos, the seat of management 

 of the Amazon Steam Navigation Company, 

 attracted considerable attention, and it must 

 eventually prove of immense advantage to 

 steam-navigation, when steamers commence 

 to ply between Bolivia and Brazil via the Ma- 

 deira. In anticipation of the success of the 

 latter enterprise, the formation of a new 

 Brazilian province in the basin of the Madeira 

 was spoken of. 



The result of the general elections was the 

 return of 83 Ministerial Conservatives, 24 pro- 



