20 THE RUBBER INDUSTRY 



northern States at the present juncture call for extra- 

 ordinary measures to save the situation ; and unless 

 action is taken in the immediate future to meet the 

 conditions now prevailing, a collapse in the industrial 

 position must occur very shortly. 



The question of the high duties on imported mer- 

 chandise has been the cause of no little friction between 

 the States situated in the Amazon Valley and the Federal 

 Government, and it is within the scope of practical 

 politics that it may lead to a complete readjustment of 

 the relations of the northern section of Brazil w ; th the 

 administration at Rio de Janeiro. As matters are to- 

 day, the fact that the dominant partner is separated 

 from Para and Amazonas by a two weeks' journey is a 

 factor of too great importance to be ignored. It means 

 that all disputes with the Federal authorities must be 

 taken at great loss of time and money -to the Federal 

 capital, and months may elapse before any decision be 

 obtained. A natural corollary to the present state of 

 affairs would be an arrangement by which the States in 

 the north are allowed exemption from the general tariff, 

 or, failing this concession, the declaration of their sepa- 

 ration from the remainder of Brazil. 



As an example of the relations existing between the 

 Federal authority and the State Governments in the 

 north of Brazil, the conditions prevailing in Amazonas 

 may be quoted. When the newly-elected Governor 

 took office in 1913, he found the Legislature in opposi- 

 tion to his policy ; he dissolved the Chambers at once, 

 disregarding all the tenets of Brazilian constitutional 

 law. At the fresh elections the Governor secured a 

 favourable majority; thereupon the members of the 



