60 



BRAZIL. 



1,055,000 milreis were for foreign affairs, 13,459,000 

 niilreis for agriculture, and 22,460,000 milreis for 

 finance. The estimate of currency expenditure 

 was 263,162,000 milreis, of which the Department 

 of the Interior and Justice required 15,897,000 mil- 

 veis, Foreign Affairs 527,000 milreis, the navy 

 2:5.077,000 milreis, the army 45,596,000 milreis, the 

 Department of Agriculture 62,235,000 milreis, and 

 the Department of Finance 115,830,000 milreis. 



The national obligations on April 30, 1898, con- 

 si.Med of a foreign debt of 38,006,000 sterling, an 

 internal debt of 637,425,600 milreis, 306,936 milreis 

 of floating liabilities, 21,027,500 milreis of treasury 

 bills, and 785,941,758 milreis of notes in circula- 

 tion; total amount, 1,444,701,794 milreis. The defi- 

 cit t-xisting at the end of 1897 was extinguished 

 by means of an internal 6-per-cent. currency loan 

 of 60,000,000 milreis and a 5-per-cent. gold loan of 

 2.000,000 sterling. The interest on the foreign 

 debt, by arrangement with the creditors, has been 

 funded since July, 1898, and new 5-per-cent. bonds 

 not exceeding 10,000,000 in amount have been 

 issued to cover the defaulted interest and that of 

 guaranteed railroads, which are 1,130,000 in ar- 

 rears. The internal gold loans have been converted 

 into currency loans. 



The actual receipts for 1899 were approximately 

 266,000,000 milreis from customs, including 10 per 

 cent, in gold reduced to currency and 111,000,000 

 milreis of internal revenue; total, 377,000,000 mil- 

 reis. The ordinary expenditure was 250,000,000 

 milreis; currency destroyed, 45,000,000 milreis; 

 balance of loan of 1897 paid, 33,000,000 milreis; 

 total, 328,000,000 milreis. The bad financial situa- 

 tion that necessitated the funding loan has been 

 remedied by curtailing expenditure and promoting 

 an increase of revenue. A surplus has been accu- 

 mulated to enable Government to resume the pay- 

 ment of interest on the external bonds in 1901 

 without resorting to fresh taxation. In 1900 the 

 Government redeemed 71,000,000 milreis of paper 

 currency, and in 1901 planned to redeem a larger 

 amount. The surplus in the treasury at the end of 

 the financial year was over 16,000,000 milreis in 

 paper and 5,325,000 milreis in gold. The propor- 

 tion of duties collected in gold, which had been 

 increased from 10 to 15 per cent., was further 

 raised to 25 per cent, in the budget for 1901. The 

 external funded debt, when payment of interest 

 is resumed on July 1, 1901, will consist of 3,- 

 292,000 of the loan of 1883, 5,298,600 of the loan 

 of 1888, 18,388,200 of the loan of 1889, 7,331,600 

 of the loan of 1895, and 8.604,700 of the funding 

 loan authorized in 1898; total, 42,915,100, requir- 

 ing an annual payment of 1,921,324, in addition 

 to which there is 169,405 of interest on the guar- 

 anteed loan of the Minas Geraes Railroad, 1,138,- 

 347 guaranteed to various railroad and other com- 

 panies, 111,554 for the service of the gold bonds 

 of 1879, and 20,328 of commissions, making the 

 total annual gold payments 3,360,950. The 

 internal funded debt on Jan. 1, 1900, was stated 

 by the Finance Committee to be 634,933,100 mil- 

 reis, not including 60,000,000 milreis authorized 

 in 1897, but not issued. The floating debt is 

 about 300,000,000 milreis. The inconvertible pa- 

 per currency in circulation on June 30, 1900. was 

 705.000,000 milreis. The total internal indebted- 

 MM, not including floating liabilities, is 1,340,- 

 000,000 milreis, equivalent to 67,000.000 sterling 

 at the exchange value of 1*. for the milreis, but if 

 the milreis reached par the equivalent would be 

 150,750,000. Including the foreign debt and 

 Minas Geraes Railroad loan and the floating debt, 

 the total indebtedness of the Government is 1. !)<;.).- 

 077,000 milreis, the sterling equivalent of which at 

 par is 236,231,160. 



The fund accumulated in London for the re- 

 sumption of interest pavments was 675,760 on 

 .March 31, 1900, and by July 1, 1901, it will be 

 increased from various sources to 5,628,046. 



The estimates of ordinary revenue for 1901, as 

 presented by the Minister of Finance, were 32,- 

 165,000 milreis in gold and 343,782,000 milreis in 

 currency, to which are added 9,765,000 milreis in 

 paper of extraordinary receipts, the fund of 25,- 

 820,000 milreis for withdrawal of currency, a cur- 

 rency guarantee fund of 8,026,667 milreis in gold, 

 12,678,074 milreis in gold from the emission of 

 funding bonds, and 5,000,000 milreis in paper of 

 balance of deposits, making a total of 58,869,741 

 milreis in gold and 284,367,000 milreis in paper. 

 The estimates of expenditure were 15,784,415 mil- 

 reis in paper for justice and interior, 965,500 mil- 

 reis in gold and 526,920 milreis in paper for foreign 

 affairs, 23,076,977 milreis in paper for marine, 

 45,518,523 milreis in paper for war, 12,857,814 mil- 

 reis in gold and 60,569,986 milreis in paper for 

 industry, and 21,976,470 milreis in gold and 95,- 

 648,540 milreis in paper for finance, making a 

 total of 35,799,784 milreis in gold and 241,125,361 

 in paper, and leaving a balance of 23,069,957 mil- 

 reis in gold and 43,241,639 milreis in paper. 



The Army and Navy. The strength of the 

 active army in 1898 was 2,300 officers and 25,860 

 men. Military service is obligatory for three years 

 with the colors and three years in the reserve. 

 There is a National Guard, which has recently been 

 reorganized and made more efficient. The number 

 of gendarmes is 20,000. The army was reduced in 



1899, and attention was given to training the 

 nucleus of a new force. 



The effective navy comprises 4 armor clads, 1 

 coast-defense gunboat, 5 monitors, 2 second-class 

 cruisers, 2 third-class cruisers, 12 small cruisers 

 and gunboats, and 8 first-class and 6 third-class 

 toi-pedo boats. The torpedo cruisers Tamayo, Tim- 

 bira, and Tupy, of 1,030 tons, built at Kiel, are the 

 latest addition. The navy has been greatly im- 

 proved, and by the end of 1901 the Government 

 expects to have 23 ships ready for sea and 12 for 

 river service. 



Commerce and Production. The Rio district 

 produced 10,774,000 bags of coffee in 1898, 6,750,000 

 bags in 1899, and 7,250,000 bags in the season of 



1900, each bag holding 60 kilogrammes. The sugar 

 crop of Pernambuco in 1898 was 1,757,421 bags of 

 75 kilogrammes. The same state produced 167,198 

 bales of cotton, the bale weighing 75 kilogrammes. 

 In Rio Grande do Sul the number of cattle slaugh- 

 tered in 1898 was 340,000, and in 1899 only 270,000. 

 The tanneries, breweries, and canneries of this 

 state are important, and it has coal mines produ- 

 cing 18,300 tons in 1896. In Minas Geraes are gold 

 mines, of which the output is 104,000 ounces. Here 

 and in Bahia are the diamond mines of Brazil, the 

 normal product of which has been 40,000 carats, 

 but this has been increased since the sales from 

 Cape Colony have been cut down. Gold, silver, lead, 

 zinc, iron, manganese, copper, and quicksilver are 

 found in Bahia, and iron ore in enormous quanti- 

 ties exists in Minas Geraes. The export of coffee 

 from Rio de Janeiro in 1898 was 3.793.320 bags; 

 from Santos, 5.745,210 bags; from Victoria, 379.911 

 bags; from Bahia, 329.725 bags; of sugar from 

 Pernambuco, 1,757,421 bags; from Maeeio. 639.584 

 bags; of cotton from Pernambuco. 1<>7.I9S hales; 

 from Cear.1, 8,000 bales: from Maeeio. 7.375 bales; 

 from Penedo, 40,000 bales; of rubber from Cearfi, 

 1.008,317 kilogrammes: of hides from Bahia, 

 JliS.OH): from Maeeio, 5,807; from Pernambuco. 

 15S.513; of tobacco from Bahia, 431.140 bales; of 

 cacao from Bahia, 155.312 bags; of piassava from 

 Bahia, 2,006,592 kilogrammes. 



