94 



BRAZIL. 



works, and 62,102,166 to the Department of Fi- 

 nance. In 1889 the revenue was estimated at 

 139,340,000, and the expenditure at 153,147,844 

 milreis. This does not include 20,266,965 milreis 

 of extraordinary expenditure, toward which there 

 was an extraordinary revenue of 7.780,000 mil- 

 reis. For 1890 the extraordinary expenditure 

 was reckoned at 25,456.830 milreis. 



The expenses on account of the debt were es- 

 timated for 1890 at 47,201,503 milreis. The in- 

 ternal funded debt, amounting in December, 1889, 

 to 543,555,300 milreis, consists mainly of 5-per- 

 cent, bonds. The foreign loans amount to 270,- 

 395,556 milreis, or 30,419,500 sterling, about 

 two thirds paying 4 per cent, and the rest 4 

 per cent, interest. A sinking fund of 1 per cent, 

 is provided, with which the bonds are to be paid 

 off by lot if they stand above par; but if they are 

 below par, it is to be applied to purchases in the 

 open market. 



Change of Ministry. A difference arose be- 

 tween the Minister of Agriculture and the Presi- 

 dent in regard to the construction of a harbor 

 for the State of Rio Grande do Sul. Improve- 

 ments in the Rio Grande harbor and an attempt 

 to build a railroad to Santa Catharina in the 

 northern part of the State had proved unsuccess- 

 ful ; and the President, who was accused by his 

 enemies of favoritism and connivance in jobbery, 

 insisted in granting a concession and guarantee 

 to projected harbor works in the roadstead at 

 Torres, and a railroad leading thither, with the 

 view of making that the port of the province. 

 Dr. Glycerio disapproved, and on Jan. 5 tendered 

 his resignation. The refusal of the Congress to 

 vote indemnity for the acts of the Provisional 

 Government was resented by the President, and, 

 taking the occasion when the Constitution passed 

 its first reading, the remaining ministers re- 

 signed their portfolios together on Jan. 20, 1891. 

 On Jan. 22 a new Cabinet was organized as 

 follows : Baron de Lucena, Minister of Agri- 

 culture, Commerce, and Public Works ; Dr. Joao 

 Barbalhao Uchoa Cavalcante, Minister of the In- 

 terior and Public Instruction ; Tristeo de Alancar 

 Araripe, Minister of Finance; Dr Justo Leite 

 Pereira Chermont, Minister of Foreign Affairs; 

 Rear-Admiral Fortunate Foster Vidal, Minister 

 of Marine; Major-General Antonio Nicolao Fal- 

 cao da Frota, Minister of War ; Assis Brazil, Min- 

 ister of Justice. On Feb. 23 the Constitution was 

 adopted in its amended form, and on Feb. 25 

 Marshal Deodoro da Fonseca was elected Presi- 

 dent by a majority of 23, Prudente de Moraes 

 being the opposing candidate. General Peixoto 

 was chosen vice-president by a majority of 47 

 votes. The Congress then separated to begin its 

 regular session on June 15. The Cabinet was 

 remodeled on May 23, Americo Braziliense be- 

 coming Minister of Finance in the place of 

 Senhor Araripe, who was transferred to the 

 Ministry of the Interior, and Senhor Cavalcante 

 made Minister of Posts and Telegraphs, while 

 Alfonso Carvalho entered the Cabinet as Min- 

 ister of Justice. The new Minister of Finance 

 was unable to cope with the growing difficulties 

 of the situation, and on July 5 he retired and 

 was succeeded by Baron Lucena. whose former 

 duties were assumed by Senhor Cavalcante. 



Reciprocity with the United States. A 

 treaty to secure reciprocal trade between Brazil 



and the United States was concluded at Washing- 

 ton on Feb. 7, 1891, by virtue of which sugar, 

 molasses, coffee, and hides, the produce of Brazil, 

 are exempt from duty on importation into the 

 United States. In reciprocity for and in con- 

 sideration of the exemption from duty of these 

 articles by an act of Congress approved in Octo- 

 ber, 1890, the Government of Brazil by legal 

 enactment authorized the admission into Brazil, 

 free of all duty, whether national, State, or 

 municipal, of certain articles produced or manu- 

 factured in the United States and of another list 

 of articles with a reduction of 25 per cent, from 

 . the tariff now in force, or any future tariff. The 

 Brazilian act went into force on April 1, 1891. 

 The following is the schedule of articles admitted 

 free into Brazil : Wheat, flour, corn, maize, and 

 the manufactures thereof, including cornmeal 

 and starch, rye, rye flour, buckwheat flour, bar- 

 ley, potatoes, beans, pease, hay, oats, pork (salted), 

 including pickled pork and bacon, except hams, 

 fish (salted, dried, and pickled), cotton-seed oil, 

 coal (anthracite and bituminous), resin, tar, pitch, 

 turpentine, agricultural tools and implements, 

 machinery, including stationary and portable 

 engines, all machinery for manufacturing and 

 industrial purposes (except sewing machines), 

 instruments and books for use in the arts and 

 sciences, and railway construction material and 

 equipment. Of these, the average imports for 

 the last three years have been $20,003,937 in 

 annual value, and of this the United States have 

 contributed only $3,394,633, while other countries 

 have furnished $16,609,304. The schedule of 

 articles that Brazil admits with a reduction of 

 duty of 25 per cent, is as follows : Lard and the 

 substitutes therefor, bacon, hams, cheese, canned 

 and preserved meats, fish, fruits and vegetables, 

 manufactures of cotton (including cotton cloth- 

 ing), manufactures of iron and steel not included 

 in the foregoing free schedule, leather and the 

 manufactures thereof (except boots and shoes), 

 lumber and timber and the manufactures of 

 wood (including cooperage, furniture, and all 

 kinds of wagons, carts, and carriages), and the 

 manufactures of rubber. Of these, the average 

 value of the importations for three years has 

 been $38,631,242, of which the United States 

 furnished only $2,035,899, while other countries 

 furnished $36,595,343. 



An American steamship company has been 

 organized, with A. J. Dittenhoefer and Henry L. 

 James, of New York, as president and vice-presi- 

 dent, to build or buy six steamers and eight fast- 

 sailing vessels for the purpose of establishing a 

 mail packet and commercial line between New 

 York and the ports of Brazil. The United States 

 and Brazilian governments may give subsidies, 

 for regular semi-monthly mails, and the Bra- 

 zilian Government has guaranteed interest on 

 the capital raised by $3,000,000 of bonds. The 

 voyage between New York and Rio will be made 

 in fourteen days. 



A Dictatorship proclaimed. Differences 

 arose between the President and Congress, at first 

 over financial measures passed by the Chambers 

 and vetoed by the President and schemes recom- 

 mended by the President that were voted down 

 by Congress. A coup d'etat leading to a dicta- 

 torship or the restoration of royalty was feared 

 by the opponents of Fonseca, who introduced a 



